GROUP VACATION RENTAL -Anyone ever have one?

Question

We own a house in Redding, CA that we've had leased out for the past few years. It's located within 10-50 minutes of the following tourist attractions: Lake Shasta (365 miles of shoreline and great wakboarding, skiing, bass fishing) Whiskeytown Lake, Shasta Dam, Shasta Caverns, Burney Falls, Mt. Shasta, Mt. Lassen, and Sundial Bridge. In addition there's a community college and private Christian college within a few blocks. Also, a ministry school that has students from around the world and hosts conferences that people come from across the country to attend.

The main house is 4600 sq. ft., plus a 2100 sq. ft. guest house. There's a big pool in the backyard, and a seasonal pond. It's all on 20 acres.

The current zoning allows for a B&B, Agri-tourism, Christmas tree lot (with Santa's village, craft village or ? ) Vineyard/winery, Wedding venue (in conjunction with a B&B) etc.

I probably will just sell the house, at the same time, if I can make it pay for itself I would like to keep it. It would be perfect for a group vacation rental (family reunions, weddings, etc.)

Does anyone have any experience with group vacation rentals? There's nothing else like that around, and I know there are groups that like staying together on vacation, weddings, etc.

I have no idea how you can figure potential income, expenses, etc. Any insight will be appreciated. @Jon Klaus @Rich Weese

David Krulac · Answer

@Karen Margrave

And the prospective buyer not only will pay retail but also could have those stars in their eyes dreaming of the idyllic owning a B&B or wedding site.

Running a business is much harder than almost everybody perceives.

Karen Margrave · Answer

@David Krulac  you're right of course. I am going to be listing it and if it sells, take the profits and put them into something in southern California. Though, when I market it, rather than only marketing it as a SFR I'll try to find someone that might want to do a business venture with it, gives me a wider audience.

David Krulac · Answer

@Karen Margrave

The potential uses that you cite are imho businesses and not straight real estate investments.

Businesses are not evaluated on the same basis as real estate investments and often times require much more commitment of time if not money.

There is a reason why 90% of businesses fail in the first 5 years and of the ones that succeed 90% fail in the second 5 years.  Real estate does not have such high kill rates.

I'd sell the property and take the profit.  It might be fun to do some of those businesses, but they would probably require time and money and the chances of profits are slim.  You know real estate and you know real estate is easier.

Pete T. · Answer

I would check vacation rental sites and management in the area.  If it is good vacation area, there are usually others already doing the same thing.

Karen Margrave · Answer

@Dana R. Thank you!

Dana R. · Answer

Karen,

I just posted a reply about vacation rentals on this thread

Please Share Your Knowledge And Experiences Regarding Short Term Rental Vacation Homes

My reply should help you out with your current question.

GROUP VACATION RENTAL -Anyone ever have one?

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