“Buying a Short-Term Rental Property”

          “Buying a Short-Term Rental Property”

 

 

 

 

 

 

Hey Joe 

I hope you are well. We are down here loving Florida! My wife and I would like to buy a short-term rental property to help increase our income. Not sure what my best option might be for financing. Use equity in my house for down payment? Do I have too much debt to income? Can we count the income the property will make as income? Maybe we can chat this week when you have a minute. Thanks Brice

 

 

Buying vacation properties that can be rented on a weekly or monthly basis can be profitable, but it is not for everyone. I can speak on this topic as I have owned vacation properties, fortunately for us it has been profitable.

 

The biggest challenge is managing the tenants and their expectations by making sure that their vacation is one that that they will want to experience over and over again. Sure, there are many more aspects, but tenant management is right at the top of the list.

 

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Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294

Email: joe@righttracfg.com

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Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

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Comment balloon 6 commentsJoe Petrowsky • March 28 2018 02:54PM

Comments

For you using it for two weeks a year and try to rent to other vacationers is challenging in the least if you can't a decent property manager in the area.  AirBNB is an excellent choice, but there again you need some help in the area to maintain the property

Posted by Sham Reddy, CRS (H E R Realty, Dayton, OH) 9 months ago

Making sure tenants want to come back again is definitely key. We stayed at airbnb's the last few times we went out west. There were problems with each one. We would stay in each because of the location, but if we had a choice in the locations we chose, we'd probably try something different.

Posted by Kat Palmiotti, The House Kat (Grand Lux Realty, Monroe NY, 914-419-0270, kat@thehousekat.com) 9 months ago

I prefer the longer term rentals = less stress on the house and owner! 

Posted by Lise Howe, Assoc. Broker and Attorney Licensed in DC, MD, VA, (Keller Williams Capital Properties) 9 months ago

Good morning Joe. Must say, short term rentals with third party management is not for me! Enjoy your day!

Posted by Wayne Martin, Real Estate Broker - Retired (Wayne M Martin) 9 months ago

AirBnb is pretty popular, but again, someone has to manage it, clean it, etc....

Posted by Shawn and Angela Miller, Lincoln and Omaha, NE REALTORS® (Berkshire Hathaway HomeServices Amabassador Real Estate) 9 months ago

I don't know about financing, but the purchase would be important. LOCATION would be of prime importance. Here in Carmel-by-the-Sea, for example, it would be the closeness to the ocean or at least a great ocean view. Secondly, you need someone good to manage it and that takes a lot away from the profit. If your location is "seasonal", it might be empty quite a few months of the year or the pricing has to be lower. Lots of things to consider besides financing of it.

Posted by Hella M. Rothwell, Broker/Realtor®, Rothwell Realty Inc. CA#01968433 Carmel-by-the-Sea 8 months ago

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