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.
- You need either a long or more than one peak seasons.
Cape Cod: a popular vacation spot in the summer that sees no peaks in any other time
Lake Tahoe: Two peak seasons, summer and winter.
Florida Keys: long summer season
- Track Record of Success
VRBO/homeaway
Airbnb
These sites have tons of vacation homes that have already been booked and reviewed.
This is how to establish 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.
Harder to find creative deals
Advantages:
- 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
Disadvantages:
- Traditional Mortgage
- Downpayment
- 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 renters.
- Tenant’s trashing the place
Tips:
- Put a property manager in place to answer all inquiries on vacation home
- Put property on Airbnb or Homeaway
- Pick a nice place in a a nice area to attract the right renters
- Remember there will be extra expenses
- Crank up the marketing
- Take professional photos/videos
- Little things make a big difference.- bikes, paddleboards, etc
Hey i like to work it but i don’t have any money and i got bad credit card so tell can I work it
Follow the advice on this training How to Get a Great Deal on Your Dream Home
Do investors have to use a agent to draw up the contract or use a attorney
For new investors, it is wise to hire an attorney to help with contracts. Experienced investors can often be their own attorney in most instances.
I think this a great Idea. I will try it. I think you could title a video, “Your Homework”. There is work to be done.
Great information Phil. Thank you for your knowledgeable insights. I would love to own a few Vacation Homes in our favorite destinations. God’s Best Always.
As a investor can I buy houses and resale without putting the home in my name.i do have a license in real estate never used them
Yes.
Where is a good place to meet other investors.
Why do you want to meet up with your direct competitors?
Really? You don’t advocate REIA’s and the like?
This training explains in much further detail: Are Real Estate Investor Clubs Helpful?
I’m interest in buying multi unit commercial properties either from bank. Foreclose or city housing. How I can do this or find them
Talk to a commercial real estate broker who specializes in those types of properties.
I like tell you thank you for your videos I am learning so much thank you for your time and patience you have a good day and God Bless ☆♡ from me vickie shaw
Learning from your real estate investment tips is a great experience. Thank you and continue to be a great teacher. God bless
Insightful information! Thank you for sharing!
My husband and I bought our first home in Paso Robles, Ca (wine country) in April 2012 4b/2b. We bought a extremely nice home that is very high-end that is now worth around 1million. We don’t need such a nice home. We have 2 young kids and would love to easily afford college and retirement. It’s furnished very nicely. Should we vacation rental it or sell and buy strictly investment property. Our family and friends say that it would become a party house and would be trashed. I only ask because the attraction to our area is alcohol?
Not all renters are terrible but you only have to hear one horror story to shake your confidence. Do your homework in finding a very competent vacation rental management company or learn how to do this yourself; applications, screening, contracts, marketing and maintenance. Go in to this arrangement understanding that no one is going to care for your home the way you do. Maybe this is where you decide if you have the stomach and time for landlording.