Investing in a Vacation Home

Have you considered buying a vacation home as an invest?  What better way to go on vacation than to go out of town and stay at your on home? Then when you are not visiting you can rent it out throughout the year to cover your cost.  Sounds good, right?

Let's consider a couple things and you can make your own decision.

Gross Income
Depending on where you plan to buy a vacation make sure to take into consideration that must vacation destinations are seasonal.  In other words you will not have a renter everyday of the year.  For example, in the Great Smoky Mountains the season runs from mid-March through December.  January and February can often be dead months but are starting to pickup.

Management Fees
If you plan on using a management company to rent your vacation home you will need to factor in the percentage the rental company takes for each rental plus any other hidden fees.  Do your research and know what you are getting yourself into.

Another option is to rent your home yourself using or any of the many other rental programs online.  This takes any fees from the management company and allows you to produce more money.

There is always going to be repairs that comes up.  These repairs and general maintenance might be harder for out of town owners to manage if you do not have some reliable and dependable to check on and repair items in your home.

Always consider the additional cost to keep your home run.

When considering a vacation home you should draw a rough estimate on whether or not you will need to spend money out of pocket each year.  This blog is not to say that you shouldn't buy an investment but rather to consider whether your investment of a vacation home will truly be an investment or drain your wallet.

We do suggest working with an agent that knows the area where you are thinking about buying your vacation home.  They will know the ins and outs of the market.  The best location with the best chance for success for your investment.  They will also know what you need to look for to have the best rental income.


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