High Yield Pigeon Forge STR Investment Opportunity

Business Proposal

High-Yield Furnished Vacation Rental Partnership with Heated Indoor Pool in the Smoky Mountains

Introduction and Market Opportunity
Presenting a strategic partnership proposal that unveils the exceptional potential of a fully furnished vacation rental property in the captivating Smoky Mountains. With over 12 million annual visitors, the Smoky Mountains offer an extraordinarily robust and high-demand vacation rental market. Projections are gross between $140,000 and $160,000 per year which aligns with the thriving market, while our Cash on Cash (CoC) Return Projection of 11% to 20% showcases the robust investment potential of this partnership.

Estimated Capital Costs
• Down payment and closing (~ $225k)
• Interior Design and furnishings (~ $45k, excludes $30k furniture credit from builder)
• Reserves (~ $30k)
Total Investment (~ $300k)

Partnership Structure
Equity Division: 50-50 distribution for commitment and decision-making parity.
Financial Contributions: Equal investment in property acquisition, furnishing, and expenses.
Roles and Responsibilities: Leverage my experience in property management, optimization, and operation while other partner(s) remain "silent" if desired.

Property Selection
High demand area with the following features that ensure a premium to Average Daily Rate (ADR):
•. High guest count due to large size (aim to sleep 12-14 guests)
•. Heated indoor pool
•. Pigeon Forge strip and Gatlinburg proximity (less than half a mile)
•. Large size
•. Premium furnishings
• Professional interior design and premium furnishings
• Highly rated host profile

Experience and Reputation
I've Hosted 400 stays with an overall average of 4.94 out of 5-star review rating in 4 markets across 8 properties.

Revenue Maximization Strategy
Leverage Experience: Proven track record in optimizing revenue from 8 vacation rentals in diverse markets.
Established Profile: > 400 guest stays with 4.94 (out of 5) average rating
Data-Driven Insights: Market-derived insights and management tools/software for pricing, forecasting, guest communications, contractor/cleaner management, marketing, and general operations.

Financial Compensation
Shared Profits: Equitable distribution of generated revenue as per partnership agreement. Property Management Fee: Negotiable 10-20%, covering listing setup, tech integration, guest interaction, vendor coordination.

Risk Management
Contingency Fund: 3-6 months' expenses for unforeseen circumstances and stability. Comprehensive Insurance: Protection against unforeseen events.

Flexible Exit Strategy
Open for discussion: equity buyout, asset sale, 1031 exchange, adaptable to evolving goals.

Conclusion
Solid opportunity in a consistent and reliable market with an experience owner/operator has the potential for partners to enjoy solid returns and a beautiful place to enjoy when not occupied.