Investor · Severna Park, MD · Member since 2013 · 73 posts · 5 votes
I'm looking to purchase my first vacation investment home. I'm in the very early stages of researching. Must be a beach area. Purchase price up to 250k or so and be positive cash flow. I would only use it for 1 week a year and rent out the rest of the year. Does not have to be limited to US. Want to be in a area that has demand year around not just seasonal. Any ideas would be greatly appreciated..
I'd also be open to investing with a partner as well, preferably one that already has experience and a track record at the location.
I don't know how hard it is to fill a vacation place year round- but I do seasonal weekly rentals in va beach and do short term leases in the winter- It does really well in the summer
On the west coast, I'd avoid California since it is tenant friendly and avoid Washington because it is too cold here even in the summer. Maybe Oregon coast, especially more southern? Many locals take trips to the coast, even in the winter to get away or storm watch. Another thought is the coastline of Texas since that state is so investor friendly.
I don't know how hard it is to fill a vacation place year round- but I do seasonal weekly rentals in va beach and do short term leases in the winter- It does really well in the summer
If the Navy takes us back to Virginia in two years I would love to buy a seasonal rental to use at the beach. If you don't mind me asking where are the houses located, what did you pay for them, what is your daily, weekly rent. How are your vacancy and holding costs?
I would love to share more, however, I believe that may violate some of BP's rules about advertising if I share too much about my particular place. What I think I can say is that it is weekly rental that sleeps 8, and that you or anyone else interested in that place or buying the own rental, can contact me at [email protected]
The first question is were do you want to vacation? That may be a great indication of a place to buy.
@Mick Sweeny is doing syndication deals in Belize! Can't beat that! Be aware however that Vrbos tend to have way higher maintenance costs and higher managenent fees. There also may be tax implications if you are using the property also.
Have you considered the Deep Creek area out in the pan handle of MD? It's got great outdoors activities in the Summer and skiing in the winter. We love it up there.
Have you considered the Deep Creek area out in the pan handle of MD? It's got great outdoors activities in the Summer and skiing in the winter. We love it up there.
I've lived in MD all my life but I'm a clear water beach guy. Like the mountains as well but prefer to be in Utah/CO. Deep creek is nice though..
I've been thinking about the same issue for a while. I think the ideal location should be a place that people vacation year-round, a place that you and your family like to vacation, the total NOI from the investment is good enough to justify the money and if it is far, you have a reliable management company.
My thoughts are Hawaii.... ah, the great food, people, the relaxing music and the sun.
If you're still looking, coastal Brevard County in Florida is a year-round vacation rental destination. Winter is "high" snowbird season, spring through summer is popular with families, and there are year-round military and space related visitors. I own both vacation and long-term rentals there and think it's a good compromise between property cost and potential income. Please feel free to PM me for more info.
I agree w Fl. It's not Cali prices. I just moved from VA. Beaches are good for several summer months. After that the rentals are selective to high end properties. I'm not self promoting as my direct location is not a popular beach destination. I've heard Other Gulf of Mexico states too. I'd like to hear from international investors
For a beach location at 250 k with year round occupancy to support it you would be looking in Florida or possibly out of country. RI has a short summer season and our area has winter student rentals but I don't know if there are other areas like this. I think 250k may not get you want you want here.
Before we bought we considered several locations down the East Coast; OC MD, VA Beach, OBX, Myrtle Beach, Georgia Coast and FL. Our major concern was also rental income all year if possible. That made the decision relatively easy - FL. We took it a step further and bought in Key West - Love it! You'll rarely find 'deals' though and insurance is high. I would imagine insurance would be high at any costal resort. Rents very well. Key West has done a good job of scheduling events throughout the year to attract guests. If you consider KW, make sure you educate yourself on their transient rental licensing. Good luck!
By the way, just to add numbers into the mix...In Brevard County (because it's what I know), you can get a 1 BR vacation rental with a nice ocean view from $130K. With good active management, these can get $15 to $20K per year in gross income. Two BR oceanfront units start at $250K and can get $25K+ in gross income. These are true condos and not a condo-tel or other ownership.
As for foreign investors, Canadians became quite active as the bottoming of real estate values coincided with the a period of exceptional strength for the Canadian dollar from 2010 to 2012. They are still active, but less so as the dollar has made a comeback against the Looney over the past year.
By the way, just to add numbers into the mix...In Brevard County (because it's what I know), you can get a 1 BR vacation rental with a nice ocean view from $130K. With good active management, these can get $15 to $20K per year in gross income. Two BR oceanfront units start at $250K and can get $25K+ in gross income. These are true condos and not a condo-tel or other ownership.
As for foreign investors, Canadians became quite active as the bottoming of real estate values coincided with the a period of exceptional strength for the Canadian dollar from 2010 to 2012. They are still active, but less so as the dollar has made a comeback against the Looney over the past year.
Good luck and I hope this information helps!
Rob,
This is exactly the kind of thing I'm looking for. Would it be ok to reach out to you for more details?
Can I ask what your primary goal is with this property? Is it to use as a vacation home and let others pay the mortgage or is it for return on investment?
Can I ask what your primary goal is with this property? Is it to use as a vacation home and let others pay the mortgage or is it for return on investment?
I would like to rent the home out 51 weeks of the year and use it for my family 1 week a year while cash flowing.
By the way, here is an excellent blog (full disclosure: this is my realtor, but we have no financial relationship) on investing on Florida's Space Coast. URL: http://southcocoabeach.com
Aside from an up-to-date accounting of the market, some of the "Favorite Posts" (along the right side) are classic information that is a must read for investing in a vacation rental market.