How to find an existing rental property to purchase?

Question

I'm interested in buying a waterfront property at a nearby lake so I can stay there a few weeks a year and rent it out (short-term) for the rest of the year.

Lots of homes on this lake don't allow short-term rentals, so ideally, I'd like to find a home which is already being used as a vacation rental. But how can I go about making an offer on these properties when they're not on the market? Any suggestions? Should I just consider reaching out to the owner directly to inquire about whether they're interested in selling?

Collin Hays · Answer

Do it the old fashioned way: Go online at the local tax authority website, copy down names and addresses of homes you are interested in, and snail mail a personal letter stating your interest. I bought my first STR this way. I wanted a creek/river front cabin and all the realtors basically laughed and said "you and everyone else" and blew me off.

No one is as concerned about your investment as you. Take control and get what you want. You don’t need anyone’s help. Good luck.

John Williams · Answer

@Michael Baum In some parts of the lake, town regulations prohibit short-term rentals. In other areas, HOA agreements limit the number of rental properties in the neighborhood. And in other areas, I’ve been warned, neighbors will make such a fuss that I’ll wish I had picked another location just to avoid the headache.

Michael Baum · Answer

Zoinks! That sounds like a bit of a nightmare @John Williams. You might want to look elsewhere. I would bet that you might be staring down the barrel of a full ban from either the town or HOA's in that area. Sounds like it is heading that way.

Mark Futalan · Answer

@John Williams

I’d stay away from purchasing homes in these areas where STR’s are restricted or can be in the future with those HOA’s. Look for something where regulation is already in place and the rules are already determined. Usually that means looking at neighboring cities. Good luck to you!

Michael Baum · Answer

Hey @John Williams, so when you say don't allow short term rentals, do you mean that there are regulations or so you mean that the owners don't rent it out short term? That is something that I would look into. Municipalities don't ban STR on a per lot basis. There could be regs that prevent STR's on the lake.

Where are you looking?

John Underwood · Answer

I agree with @Collin H.. This would be the best way to find an off market deal.

How to find an existing rental property to purchase?

How to find an existing rental property to purchase?

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