There are so many advantages to buying a vacation rental — from the extra income you’ll bring in from each guest to having your very own property to jet off to whenever you’re in need of some rest and relaxation. But in addition to these perks, there are some disadvantages you’ll need to consider before taking the plunge into vacation rental investment. Rental properties require year-round management, and unless you hire a property manager to handle these tasks for you, you’ll need to clean and maintain the home yourself after every guest.

If you’re up for the task of owning a vacation rental, these tips will help you to find the perfect investment property in your desired location!

Ask Yourself These Five Questions

Before beginning your search for a vacation home, there are five important questions you’ll need to ask yourself. These include:

1. What are your reasons for buying a vacation home? Do you plan to rent it out for additional income? How often do you plan on staying there?

2. How will you finance your vacation rental? When buying a vacation rental as a second home, several financing options include cash-out refinancing, reverse mortgages, home equity lines of credit (HELOC), 401(k) loans, and conventional second mortgages. An experienced mortgage lender can help you to explore your specific options.

3. What is your desired location? Family- and tourist-friendly areas are some of the best locations for investing in real estate as they’re home to many desirable attractions and activities.

4. Can you afford to buy property in your desired location? It’s important to research home prices in your desired area to get a better idea of what you can expect to spend on the purchase of your vacation rental. However, keep in mind you’ll need to factor in the cost of home repairs, maintenance, furniture, vacancies, and professional property management expenses (unless you plan on managing the property yourself).

5. How will you find the vacation rental? It’s important to enlist the expert guidance of a local real estate agent. A local real estate expert like Carol Gilles can help you to understand any rules or restrictions pertaining to vacation rentals in that area and introduce you to suitable properties that fit your budget.

6. Will you hire a property manager? Running a vacation rental business on your own can be stressful and time-consuming, especially if you live far away. If you need help, you can find property managers that offer day-and-night guest support, cleaning services, and easy check-in procedures.

After you’ve asked yourself these six questions, you’ll be well on your way to finding — and buying — the ultimate vacation rental!

Don’t Shy Away From Fixer-Uppers

Depending on your budget and desired location, you may come across a few fixer-uppers as you search for a vacation rental. And while a whole-house remodel may be more than what you’re up for, you shouldn’t shy away from homes requiring a few aesthetic repairs or upgrades.

Some possible repairs and updates to your new vacation home may include replacing kitchen appliances, upgrading bedrooms and bathrooms, paying for professional home staging services, and boosting the property’s curb appeal.

Indeed, there’s a lot to consider when buying a vacation rental, but the advantages of investing in a second home will far outweigh the cons — as long as you do your homework and enlist the help of a real estate expert. After putting in all that effort, you’ll be able to enjoy a well-deserved vacation in your new rental property!

So are you ready to begin the hunt for the ultimate vacation rental? Contact Carol Gilles at 310-864-9738 to schedule an appointment!

Thanks to Sara Bailey of Thewidow.net