Hi BP Members - I'm curious to get options on whether or not you would invest in Summer Vacation Rentals.
The rentals in this specific market are only open approximately 6 months out of the year, from the end of April through early November. The prime rental season for the area would only be from June through Mid September, so about 14 weeks. The homes are approximately $200,000-$300,000 and rent by the week from $1000 -$1700/week.
Tax Rate $20/$1000
Assuming you self manage the properties, would you invest?
Ive looked at vacation rentals, specifically down Cape Cod. It didn't make much sense to me right now, I don't have any experience renting out apartments yet. But I will soon.
Most vacation rentals would be condos. You have to factor in HOA fees, and most of the time they are hefty in destination spots.
For me, between HOA fees, my HELOC payment (which id use as a down payment), and the mortgage PITI, id be taking too much of a risk. If I had more capital then I would definitely consider it, I would get myself into a fixer upper and work on it during the off season.
Thanks for the info @Brian Ellis . These would be single family homes, so now HOA fees but point taken. I do think there is a lot of risk in these types of properties though the prices just seemed super low for the market. Still trying to wrap my head around it.