My wife and I are interested in purchasing a home to use as a vacation rental (short term rental). The home is in a prime location in terms of what rents locally, and my wife runs a vacation rentals company which does very well.
We don't currently own a home and this would be our first home purchase. It is a 3 bedroom/2 bathroom home that is located in a prime rental location. The owner is asking $149,900 for the home. By the way, this home is for sale by the owner.
What is the best way to purchase a home? Does this number seem a high number for the home we've described? Also, are there things that we should consider before going through with this?
Congratulations on getting started.
First, no one can give you an opinion on if the number seems high based on the information, or lack of, from your post. All you've said is that it's in a prime location and it's a 3/2. What are other 3/2's selling for within a 1/2 mile? You have to compare size, condition, specific neighborhood and street, to get an idea if it's a good deal.
There are a lot of options to purchase the home but if you won't be living in it you won't be able to get some types of financing. This is a pretty loaded question and everyone will have a different suggestion.
The first couple of things I would recommend are:
Make sure the city/town where the property is doesn't have restrictions on short-term/vacation rentals? Some cities have restrictions on who can own/run a vacation rental or the minimum number of days a property can be rented.
You will also want to contact a few insurance companies to get quotes as vacation rental policies can sometimes be more expensive than on your primary residence.
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