Sk, Home Buyer in Sanjose

Vacation Rental Home Market conditions

Asked by Sk, Sanjose Mon Dec 21, 2009

How is the vacation rental Home market in Tahoe.Is this the best time how much is the investment and what is the ROI. Looking for an expert real estate agent with Honest advise.

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Sk, there are multiple layers of answers to your question. Most of 2009 showed that occupancy was down around 30% over prior years. I have been seeing many previous vacation homes now being used for long term rental units which can add a twist to leaving the property fully furnished or moving it out and either selling or storing the furniture and personal property.
While it seems to be a good to buy almost anywhere it should depend on how you want this 'investment' to perform. How much down will you need to accquire the property, how is your down payment money performing in it's current placement, would there be any tax advantages for you, would you need a loan and what would those costs be, management service and fees.....is just scratching the surface of questions that need to be analyzed before determining a ROI.
There are plenty of profitable vacation homes out there, and good reasons for them. I would agree with Trish Hall as to...it will supplement the cost of ownership.
2 votes Thank Flag Link Mon Dec 21, 2009
SK - I have been telling me clients for years that a vacation rental will not pay for itself - it will only supplement the cost of ownership. Honestly.
2 votes Thank Flag Link Mon Dec 21, 2009
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