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Looking for quality home builders for Norris Lake, Tennessee? Here's a recommended list of businesses for Norris Lake builders, contractors and lake developers with a high reputation for constructing high quality vacation lake homes in East Tennessee!

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Globally, the vacation rental market reached a value of $ 74.64 billion in 2021 , according to Grand View Research. And while the pandemic hit the travel industry hard, over a quarter of Americans plan to travel through the end of the year, per Destination Analysts. This makes a vacation rental a smart investment. However, there’s a lot to consider before jumping into the vacation rental business. To help, Norris Lake Living outlines a few essential steps it takes when getting into the real estate investment game.

Choose Your Location

Vacation rentals rely heavily on location. Buying in the right area increases your income potential. Look for target neighborhoods close to attractions or public transportation with low crime rates. You can consider buying and renting out a vacation home in Lake Norris, for example. In addition to the allure of the area’s natural beauty, Knoxville is a short drive away and Nashville is an easy day trip. Choose an area that makes those spots easily accessible.

Understand the Purchase Process

If you're financing the rental property, expect to have a larger down payment than when buying a house as your primary residence. Investment property financing often requires at least a 15% down payment. However, it may be 20% or more, depending on your credit score and the type of property. If you don't have that much money on hand, a second mortgage or home equity loan on your primary residence may help with the funding.

Make Improvements

Consider your ideal renters when remodeling or updating the property. If you're targeting families, a large, updated kitchen and multiple bathrooms are ideal. If you're targeting young, single vacationers, you might focus on fun entertainment spaces. If you want ideas on how to make a rental stand out, check out comparable homes in the area to see what sort of updates are popular. Handle necessary repairs to make the property safe, then make cosmetic updates so it photographs well for rental listings.

Decide on Your Management Style

Determine if you want to manage the rental yourself or hire a property management company, which can cost between 10% and 50% of your monthly rental income, according to iGMS. Hiring a management company can reduce your time commitment, but you can lose a large part of the rental income to the fees.

Hire Professional Help

Consider hiring help to learn from professionals as you venture into rental property investing. Some professionals to consider hiring include:

Real estate agent. Find an agent with experience in rental properties.

Contractors. Choose licensed contractors to help with specialty work, such as electrical or plumbing.

Lawyer. Legal advice can help you form your investment company properly.

Accountant or financial advisor. Financial professionals can guide you on how much you should invest and how to manage the property after buying it.

Consider Unexpected Costs

Investing in a rental property doesn't stop at the cost of the home. Research and budget for unexpected expenses, such as:

• Repairs if something breaks

• High utility bills from guests who crank the air or leave lights on all the time

• Marketing costs to keep the rental booked

Landlord insurance , a must for protecting yourself

• Furnishings

• Landscaping

Form an LLC

Treating your investment as a business is easier when you create an LLC. This business structure minimizes personal liability and gives you tax advantages. To form an LLC in Tennessee, you can file your articles of organization online. If you don't feel comfortable completing the paperwork, hire a lawyer or use a formation service to save on costs.

Master Real Estate Investing

Doing research and having a detailed plan can help you enter vacation real estate investing successfully. When you choose the ideal location, plan carefully for what you can afford and what sort of updates are worth making and set up shop as a legitimate business, you pave the way for a better start.

Thinking of buying a lake house or lake property on Norris Lake? Team up with the real estate pros at Norris Lake Living today by calling (800) 485-1290!

Despite there being hundreds of potential options, many homebuyers aren’t satisfied with the choices on the real estate market. Many people feel as though the available houses are too similar to one another, as though they were duplicates of the same original model. With a new home representing such a large investment, it makes sense that buyers are determined to find their dream home. If you find yourself in this position, it’s time to consider a custom build. Building your home from scratch gives you the utmost guarantee of having a home that fits your needs and desires. Here’s a quick guide to get you started.

Taking Out a Construction Loan

Unless you’re one of the small percentage of homebuyers who can pay for a new home outright, your first step will be taking out a construction loan to build your new home. Keep in mind that income guidelines, credit scores, and other requirements for securing such a loan are much more stringent than those needed for a regular home loan. It’s important to evaluate your appeal as a borrower before you send in applications. You can always consider taking out a construction-to-permanent loan. The builders (and, by extension, their employees) are paid by the lender once the job is finished, and once you have officially closed on your property, the total cost is then converted into the mortgage.

Hiring a Real Estate Agent

If you’ve decided to try your hand at building a home from scratch, you may be surprised to hear about real estate agents as an important part of the process. These professionals are typically only associated with buying and selling homes; it’s not often that you see real estate agents advertised for home construction. Real estate agents have the expertise and experience to act as your personal advisor offering you tips and suggestions to help navigate the complicated housing market. A realtor will help you find the perfect property on which to build your home. They can also be an instrumental component in finding a reputable and affordable builder.


Finding a General Contractor

Many homebuyers don’t even consider the possibility of building a custom home because of the perceived complexity of the undertaking. While there is more involved than a standard real estate purchase, you can always work with a general contractor to take care of the finer details. These professionals handle all of the outsourcing and permit requirements needed to build a home. General contractors are the source through which your dream home is translated into reality. They’ll be able to translate your desires into logistical possibilities with the hiring of professional subcontractors such as plumbers, landscapers, roofers, architects, and more.

Develop a Rough Timeline

Before breaking ground on your new home, it’s important to have a rough timeline established with your builder to ensure that everyone is on the same page. Without clear deadlines, it’s easier for a custom build to take longer than originally quoted or expected. The timeline should be created from input between you and the chosen builder. After creating a schedule with multiple goal dates, make sure to follow up throughout the process to see how things are going. You can work with your real estate agent as well for additional support. This correspondence can help alleviate confusion and contribute to a smoother operation overall.

Building a custom house is an exciting undertaking that gives homebuyers the possibility of bringing their dream home to life. Although there are more steps involved than a standard home purchase, the end result should be worth the extra effort. Just make sure you stick to the plan.

Photo Credit: Pixabay


Suzie Wilson ⎸ This email address is being protected from spambots. You need JavaScript enabled to view it. Happier Home

Norris Lake, Tennessee - Looking for guided property tours for Norris Lake real estate? Call us at (800) 485-1290! Norris Lake Living offers personal services to help you find your vacation lake home, waterfront condo or dream lake property on Norris Lake! We also offer lake home tours of area Norris Lake communities!

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