{"id":110250,"date":"2019-04-28T11:00:19","date_gmt":"2019-04-28T17:00:19","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=110250"},"modified":"2023-08-01T12:03:26","modified_gmt":"2023-08-01T18:03:26","slug":"vacation-rentals-traditional-buy-hold-real-estate","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/vacation-rentals-traditional-buy-hold-real-estate","title":{"rendered":"Vacation Rentals vs. Buy and Hold Real Estate: Which Is Better?"},"content":{"rendered":"<p class=\"p1\">Let&#8217;s talk about vacation rentals versus traditional buy and hold property.<\/p>\n<p class=\"p1\">Over my years in a real estate, I have been involved in various businesses and various transactions. I\u2019ve tried my hand in a lot of things. Right now, my bread and butter business is my <a href=\"\/renewsblog\/2015\/12\/15\/turnkey-real-estate\/\" target=\"_blank\" rel=\"noopener noreferrer\">turnkey real estate company<\/a>, where we sell a lot of properties to investors that buy and hold.<\/p>\n<p class=\"p1\">I also own three properties in the Bahamas, and I have a property in Japan and Croatia. So I\u2019m pretty well versed in different economies, real estate markets, and asset classes from an investment standpoint and from running numerous companies. I\u2019m not trying to toot my own horn; I&#8217;m just attempting to convey why I&#8217;m credible.<\/p>\n<p><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/A8IrKAg0QR8\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><span data-mce-type=\"bookmark\" style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" class=\"mce_SELRES_start\">?<\/span><\/iframe><\/p>\n<h2>Why I Prefer Buy and Hold Over Vacation Rentals<\/h2>\n<p class=\"p1\">Experience has led me to believe that vacation rentals are a little bit too much of a headache. I do know a lot of folks who do that as their full-time passive income stream\u2014and they do it very successfully. But in my opinion, it\u2019s an entirely different structure than a traditional buy and hold property. If you are unfamiliar, BiggerPockets is here to help you learn <a href=\"https:\/\/www.biggerpockets.com\/blog\/buying-vacation-rental-property\" target=\"_blank\" rel=\"noopener\">how to buy a vacation rental property<\/a>.<\/p>\n<p class=\"p1\">Why are vacation rentals and traditional hold properties different? You\u2019re probably going to have to spend more money to acquire a property in a more desirable place\u2014somewhere in the mountains or the Caribbean or Florida, where it\u2019s warm and the weather is great. Usually, these properties do not come at a discount. In fact, you have to pay a premium.<\/p>\n<p class=\"p1\">It&#8217;s not just that either. If you are going to do a vacation or short-term rental, you\u2019re probably going to have to furnish it. And you\u2019re going to furnish it with a level of interior design, because you can\u2019t just slap crap together and call it done.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-107639\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/02\/keys.jpg\" alt=\"Female hand holding key house shaped keychain.\" width=\"702\" height=\"336\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/02\/keys.jpg 702w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/02\/keys-300x144.jpg 300w\" sizes=\"auto, (max-width: 702px) 100vw, 702px\" \/><\/p>\n<p><em><strong>Related: <\/strong><\/em><a href=\"\/renewsblog\/2013\/06\/16\/vacation-rental-investment-not-for-you\/\" target=\"_blank\" rel=\"noopener noreferrer\"><em>6 Reasons Vacation Rental Investment Is NOT For You<\/em><\/a><\/p>\n<p class=\"p1\">Another thing is the turnover is going to be much higher, meaning you might have folks who want to rent it for one night, three nights, or two weeks. Of course, you\u2019re going to have to make sure that you clean it and get it ready for the next guests. So there is a lot of hassle with that.<\/p>\n<p class=\"p1\">I also think it\u2019s very seasonal. Even if you\u2019re in the Bahamas, you\u2019re not going to <a href=\"\/renewsblog\/2013\/01\/04\/how-to-rent-your-house\/\" target=\"_blank\">get people to rent<\/a> during hurricane season. There are also periods when it\u2019s really not that warm.<\/p>\n<p class=\"p1\">These are just a few of my thoughts when it comes to vacation rentals. I think we all invest in real estate to make it as passive as possible. You collect your monthly check, and you don\u2019t really have to worry about it.<\/p>\n<p class=\"p1\">\u00a0Although on paper vacation rentals may offer a higher cash flow return than a traditional buy and hold property, I do believe it comes with more hassles. I guess the perk there is you can use your property for vacationing whenever you want.<\/p>\n<p class=\"p1\">As I said, I own real estate in the Bahamas. But I\u2019ve rented it out to <a href=\"\/renewsblog\/2013\/01\/27\/tenant-screening\/\" target=\"_blank\">long-term tenants<\/a>, believe it or not. I prefer it that way\u2014consistent and less hands-on involvement.<\/p>\n<p class=\"p1\"><a href=\"https:\/\/www.biggerpockets.com\/real-estate-investment-calculator\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-91220\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/08\/blog_ads-02.jpg\" alt=\"\" width=\"700\" height=\"85\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/08\/blog_ads-02.jpg 700w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/08\/blog_ads-02-300x36.jpg 300w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><\/a><\/p>\n<p><em>What do you think about vacation rentals versus buy and hold properties? Which way are you leaning?<\/em><\/p>\n<p><strong>Let me know in a comment below!<\/strong><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Let&#8217;s talk about vacation rentals versus traditional buy and hold property.\u00a0What are the differences? I have many years of experience in real estate and many deals under my belt, and I have come to the conclusion that buying and holding is the better option. Here&#8217;s why. <\/p>\n","protected":false},"author":1672,"featured_media":102727,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5183],"tags":[],"class_list":["post-110250","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-landlording"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/110250","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/1672"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=110250"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/110250\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/102727"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=110250"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=110250"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=110250"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}