Have you ever dreamed of the day that you could afford your own vacation home? What if I were to tell you that it may be possible for you to make that dream a reality right now? How? By making a property in your favorite destination a vacation rental home investment that brings in more money than it costs! And the best news of all is that this is not a pipe dream. This is very doable. In the following video, you're going to discover 5 powerful rules of thumb when buying a vacation rental home, the advantages, the disadvantages and several invaluable tips. Plus, you'll get access to a complete tour of my personal vacation home so that you can collect ideas and model what I did. Here's a training on how to make your vacation home dream a reality:
Here's a sneak peak inside my vacation rental:
Here's a summary of what you learned in the video above:
How to Make Your Vacation Home Dream a Reality
Rules of Thumb:
- The legality of short-term renting.
The places that are the most ideal for vacation rentals tend to have a lot of hotels and tourism. These areas often have certain laws pertaining to short-term renting.
Short term renting is less than one month. (nightly, weekly)
Make sure you talk to a property manager or even the city itself, to find out the legality of short-term renting in that particular area and for that specific property.
- You need either a long or more than one peak seasons.
Example of One Short Season
Cape Cod Massachusetts: From Memorial Day to Labor Day (Summer) and dead the rest of the year
Example of Several Seasons
Sevier County Tennessee: 3 Busy Seasons; March/April, June/July/August & October/November/December
Example of One Long Season
Many Parts of Florida: Busy starting around Christmas time and then staying busy all the way until Labor Day (the fall is the off peak time for Florida)
- Track Record of Success
These are the two main sites for vacation rentals. Study the reviews of listings on these sites to get an idea of what other people are saying about a certain area/community
Buy a property in an area people love
Less work for you
- Great Property at Fair Price
I typically look for steals when finding a property, but if you want your dream vacation home in the right area, then you are going to look for a great property at a fair price.
Purchase the property with a traditional loan process: Real estate agent, mortgage, paperwork.
MUCH Harder to find creative deals
- You can own a vacation home and not feel like you are blowing money on it.
- It is an investment. It can make you money
- Free Vacations
- Enjoy today
- Traditional Mortgage
- Cost to furnish/upgrade
- Balance your vacations. The peak weekends (Holidays, Labor Day) make the most money so you may want to give those up to guests.
- Tenant’s trashing the place
- Put a property manager in place to answer all inquiries on vacation home
- Listing your property on AirBNB and VRBO
- Pick a nice place in a a nice area to attract the right guests
- Remember there will be extra expenses
- Crank up the marketing
- Take professional photos/videos
- Little things make a big difference.- bikes, paddleboards, etc