Aaron, since you've got an insider's view of the market, this should be an even better opportunity for you than for most. When I bought my vacation rental 14 years ago the plan was to use it more for ourselves than to rent it. As time has marched on, that's turned around and we rent it more than use it. We have seen significant appreciation in the value of the property, enjoyed some income revenue and had a great place to spend vacation time. On the down side, things can go wrong, utilities bills and mortgage payments keep coming even if renters don't and sometimes people don't treat your property as well as you would expect or want them to. Very personal subject, so what's right for you and what's right for me and what's right for the next guy/gal may not be the same thing. But, all in all, I'm very pleased that I made that purchase. Best of luck in your decision.
-It can be very costly to manage a vacation rental with the turnover and occupy a lot of your time'
-many people find they don't make it up to their rental as much as they like because of time and distance issues
-when you don't have a vacation home, you can vacation in different areas of the U.S. and world and not worry about having to use your rental
-vacation home area tend to be much more severely affected by economic downturns (you may not be able to rent it and the prices can fall much more severely then job centers)
-maintenance and repair issues are much more of a challenge from a long distance.
Check us out!
CONS: Having to learn how to fold "hotel" corners with a flat sheet!
Just teasing! Since we live in the area of our vacation rental we also do ALL the work. Saves a great deal of money but take a great deal of time, especially during the summer months!
Visit our website: www. thegigharborvacationrental.com
The pro's of owning a vacation rental are obviously the income you will receive from the rental.
Another Pro is when you decide to sell you can use a 1031 Tax exchange and this will defer your taxes when you buy another investment property.
Con's Depending on how often you want to use your property it may not bring as much income as you might have hoped. It certainly won't cover the mortgage payments, but it will help. Also keep in mind that either you will have to market and take care of the property and clean up with collecting deposits etc... . If you hire a local rental company the will handle everything, and will take about 30% of the gross income. Not everyone is cut out to rent their 2nd home as a vacation rental. The property and furniture will get damage and there is wear and tear on the property. However it is a great way to supplements some of your over all costs.
I hope this helps.