Vacation home rental?

Rb0891

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Thinking about starting to track vacation home prices to maybe pull the trigger. Any hood/bad? What kind of ROI is expected. Probably looking in SC.

Also, am I a dumbass?
 

MG0h3

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Hard to say on ROI. Too many variables.

Some markets def perform better than others. Just gotta research home price/vs expected income. Use AirBNB and VRBO to gather data on nightly rates.

I had a unit in South Padre for a couple years. Had never done short term but got the hang of it and it was easy after a few months.

Need to develop a network of service people that will go fix problems asap. Had a few events where toilets broke, AC quit etc and you need to have that fixed like that day. I’d still give the tenant a little discount for their trouble. Keeps the good reviews coming.

Gotta have good communication and take care of the renter. Reviews make or break you.

I’d def pick somewhere that you like to vacation. Makes doing repairs and what not a business expense and vacation all in one.

If it’s in an HOA, do some research and talk to owners. HOA at my complex was a ****ing disaster and made it easy for me to sell when the selling price doubled after two years of ownership.

I’m a hold right now on buying real estate. Even though my mortgage broker says he doesn’t think prices will come down, he cold calls me telling me about whacky loans to lower the interest rate for a couple years until rates come down.

No thanks buddy.


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LS WUT

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Hard to say on ROI. Too many variables.

Some markets def perform better than others. Just gotta research home price/vs expected income. Use AirBNB and VRBO to gather data on nightly rates.

I had a unit in South Padre for a couple years. Had never done short term but got the hang of it and it was easy after a few months.

Need to develop a network of service people that will go fix problems asap. Had a few events where toilets broke, AC quit etc and you need to have that fixed like that day. I’d still give the tenant a little discount for their trouble. Keeps the good reviews coming.

Gotta have good communication and take care of the renter. Reviews make or break you.

I’d def pick somewhere that you like to vacation. Makes doing repairs and what not a business expense and vacation all in one.

If it’s in an HOA, do some research and talk to owners. HOA at my complex was a ****ing disaster and made it easy for me to sell when the selling price doubled after two years of ownership.

I’m a hold right now on buying real estate. Even though my mortgage broker says he doesn’t think prices will come down, he cold calls me telling me about whacky loans to lower the interest rate for a couple years until rates come down.

No thanks buddy.


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This right here just about sums it up.
 

Rb0891

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Are you going to be renting it year round or just when you are not there?
I may be there a couple/few weeks but rented out the rest of the time. I am far away so was planning on having it managed with my contribution probably only being some capital improvements as necessary.
 

tistan

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Unless you score an amazing deal, I'd wait until summer to see what the housing market and travel market is going to do. I keep reading that people behind on their mortgage are rising and foreclosures are picking up.
 

Rb0891

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Unless you score an amazing deal, I'd wait until summer to see what the housing market and travel market is going to do. I keep reading that people behind on their mortgage are rising and foreclosures are picking up.
Yes I agree. Just starting to track listings and prices. Seems like asking prices are starting to be cut but still pretty high. Problem with near term is summer rentals are probably locked in so it may be a bit before the shtf.
 

Tractorman

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We have one near our home on a lake. Purchased August of 2020, right before things went really stupid, and it was just kind of stupid price.

We listed it on Airbnb, and so far its been really good. We're picky about who can use it, to both keep the house nice and the neighbors happy. They didn't even know for a while, but once they found out they made a stink. They thought people would pay 300 dollars a night to come steal a kayak off their dock apparently.

We don't rent full time, mainly some summer and fall, with a little winter weekend sprinkled in. It doesn't cash flow, but doesn't have to, either. My wife takes care of cleaning and setup. We actually leave it like a fully stocked cabin, which really helps our reviews and popularity.

My wife and I talk about finding a second place on this lake to do it full time, but there's zero inventory out there, and what does show up is 40% higher than what we paid and moves fast.
 

Rb0891

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We have one near our home on a lake. Purchased August of 2020, right before things went really stupid, and it was just kind of stupid price.

We listed it on Airbnb, and so far its been really good. We're picky about who can use it, to both keep the house nice and the neighbors happy. They didn't even know for a while, but once they found out they made a stink. They thought people would pay 300 dollars a night to come steal a kayak off their dock apparently.

We don't rent full time, mainly some summer and fall, with a little winter weekend sprinkled in. It doesn't cash flow, but doesn't have to, either. My wife takes care of cleaning and setup. We actually leave it like a fully stocked cabin, which really helps our reviews and popularity.

My wife and I talk about finding a second place on this lake to do it full time, but there's zero inventory out there, and what does show up is 40% higher than what we paid and moves fast.
Yeah I am going back in forth between looking for a lake place closer and being more involved or a 12 hr deal at the beach, managed with minimal involvement. I only work part time if that so I can do a bunch of the work of it is closer. The reality is we probably wouldn’t use it too much as kids sporting events take up most weekends.
 

MG0h3

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So property management on short term is typically 30%. Sometimes you see 25%. They will take all of your profit unless it’s just a stupid rental rate and cheap mortgage which is very unlikely. But this is a good way to start until you’re comfortable.

I kept the company that was managing mine prior to purchase.

Couple months in I created my own AirBNB and VRBO and listed it. I stole the pics from Zillow when it was listed for sale.

Nearly all of the prop managers reservations came through Airbnb and VRBO so a couple times I had people asking why there were two listings.

I overtook the prop management company in reservations after about 9 months. My reviews were better so my ad populated earlier in the search.

I kinda felt bad that I was blocking off the prop managers calendar as personal use nonstop so that they couldn’t rent it in order to rent it myself. I called the manager and told him what I was doing and that we should part ways because I was kinda screwing them. They don’t get paid at all when I’m renting it and I was still using their housekeeping service on the discounted “owner stay” rate. For whatever reason, he didn’t care and said they still wanted my account.

The pricing matrix on Airbnb and VRBO both suck. I used a 3rd party pricing service that overwrote AirBNB and VRBO. It would flex pricing daily based on availability and pricing in the region.

I elected to approve all requests manually. You can make it instant booking but no way. I’d read their reviews, check aged, etc. Only had a few bad tenants. Kids on spring break was an error even though I spoke with them and they promised they would keep it cool. Tagged them with $800 in repairs. Side note, AirBNB and VRBO don’t just jump on your side for damage claims. Then they basically depreciate whatever item was broken.

I’ll do it again in a heartbeat and sometimes regret selling my place but again, HOA was a disaster and I foresaw some hefty bills coming for pool repair, grounds upkeep, etc. Plus I figured the price jump would come back down to earth. Clipped 160k on 2yrs of ownership and just couldn’t pass after what happened in 08’.

I’d still recommend holding on a purchase to see what happens or at least be cautious and look for a deal. At least you have time to search. I’d go stay at the unit or complex that you’re considering buying in or nearby if it’s a standalone home.


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ford fanatic

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Had a beach house 3 hours away that we rented for a while but decided to stop after we remodeled the whole place. Sold the house a while back when we were offered our "we don't want to sell it" price. Made a bundle.

I would only do this again if it was strictly a rental, because most renters suck. Good luck.
 

Rb0891

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So property management on short term is typically 30%. Sometimes you see 25%. They will take all of your profit unless it’s just a stupid rental rate and cheap mortgage which is very unlikely. But this is a good way to start until you’re comfortable.

I kept the company that was managing mine prior to purchase.

Couple months in I created my own AirBNB and VRBO and listed it. I stole the pics from Zillow when it was listed for sale.

Nearly all of the prop managers reservations came through Airbnb and VRBO so a couple times I had people asking why there were two listings.

I overtook the prop management company in reservations after about 9 months. My reviews were better so my ad populated earlier in the search.

I kinda felt bad that I was blocking off the prop managers calendar as personal use nonstop so that they couldn’t rent it in order to rent it myself. I called the manager and told him what I was doing and that we should part ways because I was kinda screwing them. They don’t get paid at all when I’m renting it and I was still using their housekeeping service on the discounted “owner stay” rate. For whatever reason, he didn’t care and said they still wanted my account.

The pricing matrix on Airbnb and VRBO both suck. I used a 3rd party pricing service that overwrote AirBNB and VRBO. It would flex pricing daily based on availability and pricing in the region.

I elected to approve all requests manually. You can make it instant booking but no way. I’d read their reviews, check aged, etc. Only had a few bad tenants. Kids on spring break was an error even though I spoke with them and they promised they would keep it cool. Tagged them with $800 in repairs. Side note, AirBNB and VRBO don’t just jump on your side for damage claims. Then they basically depreciate whatever item was broken.

I’ll do it again in a heartbeat and sometimes regret selling my place but again, HOA was a disaster and I foresaw some hefty bills coming for pool repair, grounds upkeep, etc. Plus I figured the price jump would come back down to earth. Clipped 160k on 2yrs of ownership and just couldn’t pass after what happened in 08’.

I’d still recommend holding on a purchase to see what happens or at least be cautious and look for a deal. At least you have time to search. I’d go stay at the unit or complex that you’re considering buying in or nearby if it’s a standalone home.


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That’s a good point on the management. Would seem the only upside is on the property appreciation. Well and some equity gain I guess.
 

Blackoyote

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Thinking about starting to track vacation home prices to maybe pull the trigger. Any hood/bad? What kind of ROI is expected. Probably looking in SC.

Also, am I a dumbassI

Thinking about starting to track vacation home prices to maybe pull the trigger. Any hood/bad? What kind of ROI is expected. Probably looking in SC.

Also, am I a dumbass?
I've been on the hunt for a while for one as well, glad I waited. Prices have been steadily coming down since September/October last year - I'm also looking in SC (Myrtle Beach).

I'm waiting for a smokin' deal, be warned...look into the tax rates you'll have to pay being a non-SC resident. In Myrtle Beach/Horry County, they REALLY hammer out of state and out of MB residents for trying to make a dime (also have to have a business license for just one AirBNB).
 

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