Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
So I have never owned a vacation rental but I have investor friends who do. I also know investors who sell them off.
I had looked into buying a property myself but years of research and talking to colleagues talked me out of it.
The dream was to have a house on the ocean. Reality is warm weather just a few months of the year and hurricane insurance is expensive. You will be working non-stop the summer months to get vacationers at peak times. If you use a PM company instead they will suck you dry with steep fees due to demand.
Same thing with cabin rentals. You are buying yourself a job. This is what I have been told by investors who have 20,30 or more and some with just a single or a few. As they get older they do not like to deal with all of that.
So it's the age old question of the yield versus the work involved. I would rather make 15% passively then work into the ground for 22%. You appreciate time more than anything as you get older............. : )
Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
11y
Well @Joel Owens maybe you're looking in the wrong part of the country. Here in southern California vacation rentals are very popular. However; here we don't have to contend with hurricanes, and winters.
Southern California has perfect year round weather, and an abundance of things to do.
Don't get me wrong, I've never owned a vacation rental either. It seems they would work better for someone having a property close by that they could self manage, as the high turnover rate if you're paying someone to do everything, would probably eat all your profits. Though maybe someone with some actual experience could weigh in.
Investor · Oak Park, IL · Member since 2014 · 307 posts · 150 votes
11y
Joel, I agree with your post. Vacation properties can be management-intensive. Generally, I wouldn't invest in them. That said, I can imagine there are specific times where you can pick up a great asset, perhaps in a great location which can be bought and resold at a profit. This would require some specialization, hard work and/or good luck.
