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Hard money loans in Gatlinburg, TN
Financing for rental cabins, chalets and condos at the front door of Great Smoky Mountains National Park.
The Gatlinburg market for investors
Gatlinburg sits at the main entrance to Great Smoky Mountains National Park, the most visited national park in the country, with more than 12 million visits a year. That traffic supports one of the largest cabin rental markets in the United States, and most investment property here is bought to rent by the night.
The city itself is small and hemmed in by the park, so supply is tight. Investors buy log cabins and chalets on the ridges above town, condos within walking distance of the Parkway, and older properties that can be updated to compete with newer cabins on amenities.
Areas investors ask about
- Chalet Village and Ski Mountain: hillside chalets and cabins near Ober Mountain, with long views and a long rental history
- Downtown and the Parkway: condos within walking distance of restaurants and attractions
- The Glades and East Parkway: the arts and crafts community east of town, with cabins on quieter roads
- Cobbly Nob: a resort community toward Cosby, outside the city limits and next to the national park
- Pittman Center: a small neighboring town with its own rental rules
Plan for these on a Gatlinburg deal
- Inside the city limits, a rental needs a Gatlinburg Tourist Residency Permit, renewed every year. Zoning decides where overnight rentals are allowed, so confirm the parcel with the city’s planning office before you write an offer.
- Outside the city limits, Sevier County requires a short-term rental unit permit and a yearly fire inspection.
- A rental cabin that is not your primary residence is taxed at the 40% commercial assessment ratio, not the 25% residential ratio. That higher bill sits in the monthly payment and lowers the DSCR.
- Many cabins are on septic systems approved for a set number of bedrooms. Check the permit against how the cabin is advertised.
- Steep roads, wood construction and wildfire exposure all affect insurance. Get a short-term rental policy quote early.
Loans available in Gatlinburg
| Program | Use it for | Top leverage |
|---|---|---|
| DSCR rental loans | Purchase or refinance of rental cabins, condos and long-term rentals | 85% loan-to-value to buy, 80% on a cash-out refinance |
| Ground-up construction loans | Building a cabin or home from the ground up, with the lot included | 90% of cost for experienced builders, up to 70 to 75% of the finished value |
| Fix and flip loans | Purchase plus renovation of a property you intend to sell | 90% of the purchase price and 100% of the rehab, up to 70 to 75% of after-repair value |
| Portfolio and commercial loans | A group of rentals under one note, or multifamily and commercial property | 80% on a portfolio purchase; commercial priced per deal |
Gatlinburg hard money loans: common questions
Yes. Gatlinburg is our focus market. We finance rental cabins and condos at up to 85% loan-to-value, ground-up cabin construction, and fix and flips at up to 90% of purchase and 100% of rehab.
Yes. We finance cabins, chalets and condos, including non-warrantable condos and condotels, and qualify them on projected short-term rental income. The property must be allowed to rent by the night under its zoning and any covenants.
Yes. We use 12 months of rental history or AirDNA projections, counted at about 70 to 80%.
Rental and DSCR loans take about 30 days, appraisal included. Fix and flip loans average up to 21 days and can close in about 7 days when title and insurance are ready.
Looking at a property in Gatlinburg?
Send the address, the price and what you plan to do with the property. We will reply with the leverage and pricing that fit your deal.