Cabins / Lake Houses as Investment Properties

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Cabins / Lake Houses as Investment Properties

Curt S.
Weehawken, NJ · Member since 2017 · 30 posts · 5 votes

Hi BP,

I'm wondering if anyone has had any luck in cabin/lake house investment properties. In particular, are they viable for long term tenants or via Air BNB or VRBO? 

Mostly I'm looking to see if anyone has had success in my area (New York, New Jersey, and Pennsylvannia). Please share your experirences, particularly in the following areas. Thank you!

Orange County, NY
Sullivan County, NY
Bergen County, NJ
Sussex County, NJ
Pike County, PA
Monroe County, PA

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William Beck
Realtor · Branson, MO · Member since 2018 · 274 posts · 283 votes
5y

Check out Cindy Knecht @ Carr Realty. She's got STR expertise and knows her stuff. @Curt S.

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  • Daniel HymanBusiness Member
    CPA · Milwaukee, WI · Member since 2016 · 2k+ posts · 1k+ votes
    5y

    @Curt S.

    Absolutely! There is an entire world of investors who focus on cabins and lake houses, mainly as short term rentals. 

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  • Curt S.
    OP
    Weehawken, NJ · Member since 2017 · 30 posts · 5 votes
    5y

    Thank you Daniel. Appreciate the reply. 

    I’m hoping to see if there are members who have invested in those areas and which towns may be best suited for those types of homes. 

    0Reply
  • Pat L.
    Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
    5y

    We have a Lakehouse in Orleans county on Lake Ontario & several around us are rented. One small run down cottage is constantly occupied, 2bedroom 1 bath & no a/c. Whereas the larger one, also 2 bedroom 1 bath & also no a/c is rarely rented but they want $250/night $1500/week. We have been offered $400/night & $2,000/week for our 4+ bedroom 2.5 bath & a/c, but declined. 

    Another neighbor owns several small 1 & 2 bedroom cottages that she has on VRBO & said it's slow this year & last year was a bust. She insists on a minimum of 3 nights otherwise it's too much work. Then again she started buying them 5 years ago so she is way ahead just on appreciation.

    Listing prices for the cottages/Lake-houses around us are running $250-$375/sqft, many of which need a complete rehab. 

    1Reply
  • Curt S.
    OP
    Weehawken, NJ · Member since 2017 · 30 posts · 5 votes
    5y

    Appreciate it, @Pat L.!

    0Reply
  • William Beck
    Realtor · Branson, MO · Member since 2018 · 274 posts · 283 votes
    5y

    @Curt S. Monroe County is one of the top places in the entire country for vacation rental property. It's by far the best in the northeast portion of the country. I don't know how prices have changed in the last 6-12 months but prior to that you could get 4-5 BR homes for like sub $200k and people would actually book them. I'm sure those have probably shot up to $300k+ by now but yea, I would own in the Poconos 100% even though I've never visited in person. It's a hot vacation rental market. 

    1Reply
  • Pat L.
    Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
    5y

    Be careful, we just had our village deem Lakeshore STR a nuisance so all have to be 30+ days. This is after their pre-covid 2020 Village meetings suggesting that STR's were the norm as owners were trying compensate themselves for the (inflated) property taxes.

    Then for some reason it all changed, citing noise, parking problems, septic o/flows etc etc. In fact one of our friends was blown in by a neighbor & she was booked solid into the middle of Sept. So now she's going to concentrate on the other 3 cottages she has elsewhere & hope those villages do not reneg on the STR concept.

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  • Gururaj Iyer
    Edison, NJ · Member since 2017 · 116 posts · 34 votes
    5y
    True- definitely  hot however it comes with its own challenges.. there are entire threads on BP with investment in poconos.. regulations, lack of good quality and timely labor , make it a nightmare to operate at times..

    Originally posted by @William Beck:

    @Curt S. Monroe County is one of the top places in the entire country for vacation rental property. It's by far the best in the northeast portion of the country. I don't know how prices have changed in the last 6-12 months but prior to that you could get 4-5 BR homes for like sub $200k and people would actually book them. I'm sure those have probably shot up to $300k+ by now but yea, I would own in the Poconos 100% even though I've never visited in person. It's a hot vacation rental market. 

    1Reply
  • William Beck
    Realtor · Branson, MO · Member since 2018 · 274 posts · 283 votes
    5y

    @Gururaj Iyer No doubt. The regulations are definitely part of the due diligence process and something to carefully be considered. The timely & effective boots on the ground is also an element to consider. There are companies though that will manage vs. being in an extremely rural area of the country where there may not be any options. There are a number of considerations for buying including: acquisition costs, occupancy rates & area tourism or desirability, regulations, taxes, boots on the ground options "The Team" with maintenance, cleaning, groundskeeping, HOA costs... so that being said, Poconos area properties come with their own set of challenges no doubt.

    1Reply
  • Curt S.
    OP
    Weehawken, NJ · Member since 2017 · 30 posts · 5 votes
    5y

    Thank you both for this feedback! (Sorry this crappy mention software on BP keeps acting up on me).

    I'll start looking into Monroe County right now!

    0Reply
  • William Beck
    Realtor · Branson, MO · Member since 2018 · 274 posts · 283 votes
    5y

    Check out Cindy Knecht @ Carr Realty. She's got STR expertise and knows her stuff. @Curt S.

    2Reply
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