Me and the wife are thinking of buying a cabin in the Gatlinburg or&nbsp\\;Wears Vally area. We plan on relocating there when I retire in around 7 years but for now we want to rent it out to cover the mortgage till then. Anyone done this and what is involved as far as a management company to keep it up since we reside for now in Louisiana. Any help would be greatly appreciated.

 

Management companies around Knoxville take half for weekly cabin rentals in the Smokies. Do not rent to friends nor relatives. Run Forrest run...

 

So in the long run is it a good idea or a costly real estate error?

 

You might want to check with a competent tax advisor.&nbsp\\; Income or Loss from rental properties managed by a 3rd party are usually&nbsp\\;deemed to be "Passive Source Income/Losses" and may result in limitations/denial&nbsp\\;of the deductability of any tax loss, or worse, the dreaded "Alternative Minimum Tax" for Fed. Inc. Tax purposes.

 

MoonDog-We had one in West Jefferson Nc and rented it to friends and Family only and never had 1 minutes problem w/it. It helped on the payments and we never used a management company for the reason of their fees(ridiculous) I had a Local guy in that area that would cut the grass for me and would always check on the property when the renters left.&nbsp\\;
Go For it!! and just let us know where you keep the hide away key!!

 

I was in Gatlinburg a week ago and they are still waiting for the summer rush. Gas prices have crunched vacation communities as well. My recommendation would be to wait six months or until the economy has totally dumped.

 

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I am waiting...