Second Duplex Out of State or Vacation Rental
Hey everyone. My fiance and I are looking into adding another property to the portfolio and have gone back an forth on either another duplex out of state (we currently own one in Milwaukee that cash flows us $200 a month) or a vacation rental in a mountain town here in Colorado. I am leaning towards the second duplex as we have a decent understanding of this works and what it requires of us. She likes the vacation rental idea because of the potential cash flow increase we could have. Side note: we have agreed that once we hit a certain number on cash flow she can step down from her current job and go back to school for what she wants to do. I think that is part of the reason she is leaning towards the vacation rental, which I can very much understand. Love to hear everyone's thoughts? I don't have a ton of experience or have read a lot about the vacation rentals as compared to her, but I also deal with most of the work on our two current properties.
Most Popular Reply
My mentors always advise their mentees to stick to one thing and focus on that. If you already have systems in place to manage multifamily units and that is what your comfortable with stick to that. The good news is it doesn't sound like you have too much vested in duplexes so it shouldn't be too hard to pivot to short term rentals. Both strategies are very different and require different systems to manage them.