Don't Look!

[Matthew Marcley]

BiggerPockets is awesome!

My name is Matthew and I live here in Menifee, California. I am currently 27, and I have been working as a Diagnostic Medical Sonographer (Ultrasound) since I was 20. I reached a plateau in my career, and now I believe building assets with my income is my next step. 

I have no background in any type of real estate other than buying my own single family home, so I am a complete newbie. Over the last 6 months, I have been reading books, listening to podcasts, and browsing the forums and guides on BiggerPockets. I have found that vacation rentals are what grab my interest the most with buy and holding being a closed second. 

If anyone would be willing to give me advice, I would ask how vacation rentals have worked for anybody else? I have been heavily considering the Big Bear area for reference. Tax implications? I get a 1099 from my current workplace, so I pay quarterlies since income is untaxed. Anybody have experience using vacation renting as a write-off? 

Also, I live right next to Sun City (retirement community). Does anyone have good experiences doing a 55+ buy and hold? Is this even accessible to me being 27? 

Thank you much!

[Christy Greene]

Hi Matthew,

Congratulations on joining the Bigger Pockets community!  I also congratulate you on realizing that a J-O-B is NOT the way to financial independence and you chose real estate as a way to build wealth.  

I think you are on the right path when you realized that vacation rentals and/or buy/hold might be your niche.  

Just remember that vacation rentals are a tad bit more work than your regular rentals in that:

-It is not primarily a real estate investment but a SERVICE business model.  Therefore it is more work.  

-Because of this, if you decide that you want to hire a property manager to handle this, they take upwards to 50% of the rental fee.  

-If you want to handle the Vacation rentals yourself to cut down on costs, it turns into a job.  Making sure you are available, when guests are renting your property, making sure all supplies, paper towels, toilet paper, etc are well stocked, finding a DEPENDABLE housekeeper that can come EACH TIME someone checks out.  Don't forget laundry needs to be done.  

- Peak vacation times such as Christmas, Summer, Thanksgiving are the busiest times .  You and your family may want to go somewhere, but know that you may have to be available.  

-LOCATION, LOCATION, LOCATION -MORE THAN ANY OTHER TYPE OF PROPERTY MATTERS.

Retirement Community:

-Yes you can purchase a home in a 55+ community.  You just can't live in it.  

PROS:

- Tenant is more likely to be old school and take of the home and pay on time. 

- Tenant less likely to vandalize and or steal items from property.

-Tenant may stay longer. 

CONS:

-Tenant most likely on fixed income so potential for raising rents is limited.

-Pool of Tenants is limited to 55+

-Depending on tenant, may be more property management fees because tenant is calling more for them to come in and change a light bulb, etc because tenant is unable to do simple household maintenance tasks. 

Matthew, I am NOT trying to discourage you.  Just trying to give you some information that you may not have thought of.  If you go in knowing the good and the bad, the better decisions you can make.  

Best of luck to you and keep us all updated!

Aloha and Mahalo,

Christy