Rules for vacation rentals?
I'm ready to buy my next vacation rental property in Big Bear Lake/ Arrow Head or Crestline is there any rules I can follow to assure that my numbers work? I'm looking for places on the MLS near the ski slopes. I've learned a few rules to make sure I'm not over paying but can these rules be applied to vacation rentals?
Looking at my current property I get a little over the 1% rule (depending on the snow season). I do manage my own property but I wanted to consider what it would cost if I paid a property manager. They charge 30% and get an average 90 nights a year. In comparison I rent my place 129 nights a year. I want to go from a 1B/1B to a 2B/2B but knowing the rules I'm now getting gun shy.
What I'm afraid of is having to carry the property until I have a clientele or return customer base. Which I could do for maybe a year but according to the pod casts if the numbers don't work then RUN away....