Short Term Rental Investment Analysis: Pigeon Forge Rental Income Proforma, 2 Bedroom
There are many variables to think about when evaluating the potential purchase of a vacation rental investment in Gatlinburg, Pigeon Forge, or Sevierville. One of the major factors in evaluating this type of investment is the gross annual income. Gross income numbers are often given as a reference on real estate listings, with little insight into what the average expenses might be.
Depending on the source of the income numbers, some gross numbers will include cleaning fees and taxes, while some will not, and some will include one but not the other. This is a common error in reporting gross numbers with vacation rentals.
Elementary school vocabulary tells us that gross means “all monies coming in,” not “all monies minus a few expenses but not others.” Under the assumption that gross equals all monies coming in, and gross minus expenses equals net, we have created this Pigeon Forge rental income proforma. This proforma is meant to be used as a guide in conjunction with our Short Term Rental Cash Flow Calculator to help investors analyze potential vacation rental investment deals.
There are many amenities that can affect potential gross income such as view, private pools, etc. This proforma is based on an average property. Think a cute, clean, nice place to stay, but not anything spectacular. This tool is to be used as a guideline and is not meant to be a hyper-specific proforma for any one property. It’s always a good idea to check out your potential neighbors on Airbnb!