How to buy a vacation home and have a small payment or none at all.
I am the CEO of Venture Yours & the Vacation Rental Educator for Orange County Association of Realtors & Pacific West Realtors (some of the top earning cities in the nation) I have purchased several properties and look forward to sharing knowledge.
In 2009 my husband and I embarked on a year long honeymoon traveling the world. On our arrival back we bought and lived on a sailboat. With time we bought a house but weren’t ready to give up the boat. We were interested in giving others the opportunity we loved so much by listing the boat on airbnb. It was no small task looking for a property manager who had sufficient experience with short-term management so we created our own solution. A few years later, I went to Savannah to purchase a triplex as a traditional long term lease. Instead, I fell in love with the romantic & historic city. We ended up purchasing downtown in the historic district and listed it on #airbnb We continued purchasing and listing. We, Venture Yours now offer management services to homeowners looking to do the same. With the experience the last 10 years provided, we have streamlined the booking process and are able to maximize profits while listing on multiple booking channels. To name a few:airbnb, vrbo, homeaway, tripadvisor. kayak, flipkey, etc. If your looking to achieve this, it can be pretty straightforward. Keep reading for advice and tips.
Purchasing a Vacation Rental
When looking at where to purchase an airbnb rental, you’ll first want to decide if it’s purely for investment or enjoyment. If you’re lucky, it can be both.
If you are interested in the family enjoyment this airbnb purchase will bring, keep the following in mind when choosing a location. How far or close the location is. Whether you’ll need a car or flight to arrive at the destination. If a flight is required, you may want to look into seeing if there is a direct flight to the location.
If you are interested in the return, there are specific cities that do better than others. TIP: Do a search for cities that have the highest return for a long term and not by popularity. Long Term means the tenants are in the home for a long term – traditionally around 1 year. You might be asking, why search for long term, when it would be for short term? You want to find the cities affordability. You want your monthly payment to be low and your income to be high. Los Angeles would not achieve a high return on a single property, while Lake Arrowhead would give you a higher return. Now, if you already own a property in Los Angeles, the numbers could very well make sense.
The Numbers of a Vacation Rental
Now that you know if your vacation rental will be for enjoyment, investment or a mix of the two, you want to make sure the numbers make sense for your lifestyle. Think Debt vs Income. You’ll want to gather expenses. Some of these expenses might be mortgage, shampoo, conditioner, coffee, utilities, etc. Next, you’ll look at the estimated monthly income. If you’re unsure of what that number is, I recommend talking with a property manager. Furthermore, If you’re looking for an existing spreadsheet that gathers this information, contact the office and we can send you the spreadsheet I created.
If your looking to hire a Vacation Property Manager, we are genuinely happy to partner. We don’t believe in long term contracts and we only earn money when you do.