Buying vacation rentals subject to

[Robert Orth]

Hey guys, just wondering if anyone has heard of this being done, think it's a good idea, or if there's a market for it. I was reading up on subject-to buying and wondered if there might be a market for that in the vacation rental sector. Do investors ever buy vacation rentals for peak season in areas beach/summer or ski/winter vacation spots for the income and then try to off-load them after the season ends and they are no longer cash flowing?

[John D.]

I have made subject-to offers on properties I intend to use as vacation rentals, but without the intention of "offloading them" in the off-season.  I think this is a poor strategy, as the off season for rentals is also likely the off season for sales.  Also, you typically don't make much or any money the first few months you vacation rent -- you spend money on rehab, furnishings, soft goods, etc. and it often takes a few or more months of marketing the property at below market prices to build reputation .