Purchase a vacation place that you rent

[GwinnettNole]

I know a lot of people have purchased a vacation home and then sub them out to make money.
We are looking at doing this. Either in the Destin area or Jacksonville. Why Jax? Because it would allow me more easily to travel to other parts of the state. My wife is in favor of Destin because, well, we’ve been going there for years.

couple of question
1) Is this worth it - in the sense of actually making money?

2) What headaches do you have that you did not anticipate?

3) in order to get started you would need to put a certain percentage of money down for the place, correct? Are there leniencies vs when purchasing a home (ie you already have a mtg on a home thus there is some things working in your benefit here) ?

 

[ChiefWB]

We have been thinking of something similar on the panhandle coast with the hope of someday retiring there and have it paid off or down by that time. One thing I think is helpful is Airbnb and the like that help with advertising vacation properties.
I would imagine one headache if you don’t live close to the property would be upkeep. Hiring a property manager could take a big chunk of the money coming in.

 

[goldmom]

If you're looking at Jax, would you want the beach, or near? Do you have a budget in mind?

 

[swflnole]

I know a lot of people have purchased a vacation home and then sub them out to make money.
We are looking at doing this. Either in the Destin area or Jacksonville. Why Jax? Because it would allow me more easily to travel to other parts of the state. My wife is in favor of Destin because, well, we’ve been going there for years.

couple of question
1) Is this worth it - in the sense of actually making money?

2) What headaches do you have that you did not anticipate?

3) in order to get started you would need to put a certain percentage of money down for the place, correct? Are there leniencies vs when purchasing a home (ie you already have a mtg on a home thus there is some things working in your benefit here) ?

you would need 10% on a 2nd home(wink wink)...now is the time to do it as rates are still in the middle to high 2's on a 2nd home.

 

[GwinnettNole]

If you're looking at Jax, would you want the beach, or near? Do you have a budget in mind?

For a vacation spot it would have to be close to the beach-- I don't want it directly on though.
Looking more into this unfortunately its beginning to look like a pipe dream. Wanted to get back to Florida one day; looking like it may not happen. Reality slaps you in the face at times huh?

 

[GwinnettNole]

you would need 10% on a 2nd home(wink wink)...now is the time to do it as rates are still in the middle to high 2's on a 2nd home.

Yea, see my note to Goldmom about it looking like its unlikely to happen. I've always loved Florida, my wife on the other hand likes to vacation there. It stinks-- one of the reasons for me wanting to do this is to see if we can get in state tuition for the kids.

 

[squiffynole]

I'd be cautious. If the house is away from the beach or a destination setting it may be unattractive for short term rentals, sit empty and drain your cash. At the beach or a golf resort could work out although the carrying cost will be high and you always have the hassle of dealing with a rental company, maintenance, wear and tear and the unanticipated. For example a close family friend keeps a beach condo in a rental pool on St. George Island which took a big hit in Hurricane Michael, the condo association had to skyrocket fees for a new roof, a/c units, etc.

Something to think about - my sister-in-law has a giant empty nest mini mansion in Roswell. Through a service she allows people to use it for a week or two in exchange for vacationing at another place in the pool. This has allowed her to stay at fabulous houses in South Walton, Ponte Verdra and Sanibel. I like that better than getting tied into a timeshare.

And of course there is always the RV option!

 

[nynole1]

I would never carry two mortgages, that's just me.

 

[FitnanceNole]

In JAX, IMO a good spot for a vacation rental is near MAYO Clinic. MAYO Clinic is 5 miles from the beach (across the Intercoastal), in a good, safe area with lots to do. You expand your clientele pool as you can appeal to beach vacationers as well as to MAYO Clinic patients who travel to stay close to MAYO for weeks to months at a time.