I am looking at buying my first rental property and debating between a single family or VR. I would appreciate any advice anyone can give on benefits of one over the other. based on my initial evaluations it looks like a VR would generate more cash flow but I am making some assumptions on the vacancy rate and not sure how accurate they are. I am looking at properties in the Traverse City MI area. I know that it will be seasonal and I am assuming a 20% vacancy in the peak season and 80% vacancy in the off season. does any one have experience in this area, or another seasonal area that I could use for a starting point? Any input would be greatly appreciated.
I have a coworker with a place near Petoskey and they have close to 100% in peak season. They are on a lake. They also get winter rentals because they are only about 30 minutes from Boyne. I have considered it, as they say they do pretty good, but for them it is less of a cash flow investment than a way to have others pay for their vacation property.
It is something we absolutely intend on doing at some point.
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