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Experiences with buying a vacation home?

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ken-do-nim
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Experiences with buying a vacation home?  Reply with quote  

Hi all,

I live in the Boston area, and my family loves Vermont; we've been going about twice a year. My wife and I have started looking at housing prices, and there are some small homes that are really cheap! So we're considering picking up a vacation home there. However, it would have to sit empty for months at a time.

Do any of you have experiences with second homes?
Post Tue Oct 18, 2016 1:59 pm
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ken-do-nim
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Well nobody chimed in, but I've decided just twice a year doesn't justify the cost of a vacation home and its upkeep and I don't think we'd go much more often than that.
Post Fri Oct 21, 2016 2:12 pm
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RichardHK
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Have you ever thought about renting it out as a vacation rental while you are not using it?

I know a number of second home owners who do something similar to help make the purchase of the second home make economic sense.

I recently worked with some other individuals in the space on an Ultimate Guide to Airbnb/vacation rental ownership/investing that you might helpful if you are interested in pursuing this route.
Post Wed Oct 26, 2016 8:29 pm
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anngarnt
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My husband and I have recently purchased a vacation home through https://www.turkeyhomes.com/ service. We bought our vacation house in Bodrum, Turkey. To me, the Bodum is simply a multi-dimensional gem:)
Post Sat Oct 29, 2016 12:59 pm
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Publius
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quote:
Originally posted by ken-do-nim
Well nobody chimed in, but I've decided just twice a year doesn't justify the cost of a vacation home and its upkeep and I don't think we'd go much more often than that.


Agreed. We have looked at purchasing vacation homes for several years and there were (and still are) a lot of good deals in a couple of the areas we visit because of the housing crash of 08-09. But as busy as our lives are right now, there just isn't the return -- we can rent a much nicer place twice a year for much less than it would cost to own. And the hassle and expense of running a weekly vacation rental just isn't appealing.

I have and do own rental properties, but the vacation rental thing is much different. 25% management fee was the minimum and the wear and tear for vacationers is much higher.
Post Sun Oct 30, 2016 2:36 am
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ken-do-nim
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quote:
Originally posted by Publius


I have and do own rental properties, but the vacation rental thing is much different. 25% management fee was the minimum and the wear and tear for vacationers is much higher.


Thanks for pointing that out!
Post Mon Oct 31, 2016 3:30 pm
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oldguy
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As Publius says - renting vacation homes is way different from renting residences. Your PM is acting more as a motel manager - s/he checks tourists into the house daily, weekly, 2 weeks, etc. Cleaning, new sheets, etc. And damages - tourists might be swimmers (sand, etc), hunters (muddy boots, hounds, blood, hides, etc), ATV riders, snow mobilers, skiers, etc. And their focus is on having fun (as it should be), not cleaning rooms as they move out. The groups are likely to be much larger than a motel groups, good friends, lots of booze - it can get pretty rough, your repairs can exceed your revenue.

Or - you can let the motels have that business and let your house stay vacant most of the time. But then your only possible income is appreciation. With my rental houses, steady tenants is my main revenue - ie, empty houses don't make money.

In your case, go to Vermont twice a year, stay a week, spend $1000 on a nice motel, leave towels on the floor, track in a little snow, have fun. Way more pleasant than spending your vacation pulling the dust covers off the furniture, powering up the pipes & furnace, stocking the fridge & pantry, and fixing stuff.

And if you buy a house in Vermont, keep it rented year-round - and you stay in a motel. Very Happy
Post Mon Oct 31, 2016 10:46 pm
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ken-do-nim
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I hadn't even thought of dust covers and all that other busy-work. Great advice, thanks!
Post Wed Nov 02, 2016 5:25 pm
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Airhosta
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You also need to I've some consideration to who you will get in to manage your property, provide cleaning services, and even do concierge type services for your guests at you vacation rental.

If you are after anyone, then feel free to reach out to via Airhosta
Post Wed Jan 18, 2017 2:45 am
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Hoelet
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I am looking for such a home in Paris, and I have already found some very cool options there online at https://www.glamourapartments.com/real-estate/for-sale. I would like to go there for holidays and list the property on AirBnb or Booking.com. What do you think about such an investment?
Post Tue Feb 07, 2017 4:36 pm
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DLee
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We are investors and we deal a lot with vacant homes !
Basically, vacant homes go to hell very quickly. If no one is there to keep the place warm and keep an eye on things it could be a lot of headaches.
I would do something like a 3 to 4 month rental, or a BnB to keep it filled. Just time it right.
We have several articles on our blog dealing with vacant homes.

But basically, a second empty home will have a lot of expenses without income.
Taxes, Mortgage, insurance, lawncare, potential of break-ins/theft....
Having someone in there, not only eliminates a lot of potential issues, it also creates passive income.
Hope that helps.
Post Sun Feb 12, 2017 1:44 am
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