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General Landlording & Rental Properties

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Jennifer Lee
  • Real Estate Broker
  • Gibsonia, PA
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Vacation Rental, What to Consider?

Jennifer Lee
  • Real Estate Broker
  • Gibsonia, PA
Posted Mar 14 2014, 05:01

Hi all

Thanks for all your support! You guys have been awesome and since I have been here.. my investment portfolio and opportunities has exploded!!!

Let just say, because I have your backing, I am not longer "AFRAID" to try new things.

Ok, this is more a BUCKET LIST, than investment.

Well, I want to make it both, an investment and bucket list.

I have done residential, commercial, and multi-unit rentals. I would like to try VACATION RENTAL.

Now, if I HAD to do a vacation rental, it had to be a WATERFRONT. Living in the Carolinas had cured me of beach/ocean-front homes. So I am looking for a ALL SEASON lakefront. Something like an affordable LAKE TAHOE kind of deal.

Ok, so... I found one about 2 hours from me. We vacationed there through VRBO last year. It has a small ski resort and other entertainment. It services big metropolitan areas such as DC and Pittsburgh.

I have found a few possibilities..

I always had put this project in the back burner, b/c of the $$$. I just recently came back from HAWAI, and seeing the insane prices there and other popular vacation spot prices, $400-600K for acreage and waterfront is not a bad deal.

First of all, I had spent the last for few weeks learning how to buy WATERFRONT.

and BOY is it complicated: Buffer zones, Buy downs, Easements and Right of Way. Depth of Lake, Wake Zone, Conservation Restriction, Deeded Dock Slip, Lake Access...etc!!!

That aside, I am having trouble making this deal make SENSE in the REI point of view.

I got a conservative projection: for a 550K 4 bed house, projected Gross Rental Income is 25K? 5% before expenses

I spoke to my accountant yesterday, and he said if you stay 14+ Days, this is considered SECOND HOME, (no tax deduction). 0 Day, it's investment (you can deduct a lot), and Under 14 Days, it's Vacation Rental (some deductions). That's not a big deal, just sharing what I learnt.

We are going to see the properties tomorrow.

Part of me just want this for our enjoyment and have rental pay it off. Breakeven... but at $550K that's a lot of $$$ to invest to Breakeven.

I am considering managing it myself. but would like to go with a rental company first.

I haven't researched that part yet.

For those of you who have VACATION RENTALS....

WHY DID YOU DECIDE TO DO IT? Own Pleasure/use or Income Stream

WHERE DID YOU BUY?

SELF MANAGE or RENTAL COMPANY? Cost?

PROS and CONS?

Thanks in advance, as always

Jenn

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