If you want to own a second home, but cannot afford to pull it off, you may want to think about renting your property out to vacationers. This is a very common practice, and one of the best ways to make your second home mortgage payment without any problems at all.

When it comes to being successful with vacation rentals you need to know exactly what you are doing. Remember, there is more than likely going to be hundreds of other vacation rentals in the area. This means that your vacation rental is going to have to be competitive not only in features and location, but more importantly in price.

The best way to determine the price that vacation rentals are being rented for is by looking into other similar properties in the area. By doing this you will be able to get a good idea as to how much you should charge. 

You may also want to ask some real estate agents in the area how much vacation rentals are going for. They should be able to give you the most accurate number on how much vacation rentals are running nowadays.

Also, do not overlook the internet if you are trying to find out information on vacation rentals. You can search one of the many sites that list vacation rentals, and then compare the prices.

In addition to how much money you are charging, you will also need to keep in mind that the time of year that you are renting will have a lot to do with how much money you can make. If at all possible, you will want to make your vacation rentals available during the peak summer months. This is when traffic is the highest, and you can command top dollar for your property. 

You can make money renting out vacation rentals during off peak months, but you will not see as big a return as you would during the peak months. But if you are not going to be staying there, you might as well try to rent it out. After all, any money that you get is better than nothing.

Do not forget to determine how long you will rent your property out for. You will have to decide between renting out your properties on a weekly basis or a monthly basis. This is based on preference, as well as finances.

Being a success with vacation rentals is not impossible. If you know the details of renting out vacation properties you should not have any problems making enough money to cover your second mortgage!

Buying a vacation rental can be a great way to get involved in the real estate industry. Many people have found out that this can be much more profitable than other methods of investing such as foreclosure investing. But in order to be successful when investing in a vacation home, you need to know what you are doing. 

When buying a vacation home, the most important thing that you can do is research the properties that interest you. Far too many people make snap decisions when buying vacation homes, and then end up with something that they cannot rent out. The best way to avoid this is by simply researching everything that you do. There is a lot of information available online about vacation homes, as well as other resources that you can consult such as real estate agencies.

In addition to doing the proper amount of research, you will also want to follow the vacation home buying tips below.

1. A vacation home is not one that you will live in year round. This means that you should not necessarily be looking only for features that you would like in a home. You should also be searching for features that people who rent vacation homes would like. This includes things such as an eat in kitchen, pull out couches, and proximity to main attractions such as the beach.

2. When you buy a vacation home, make sure that you do not overextend your budget. This is a good rule of thumb to follow whenever you buy any property. You never want to make a purchase that you cannot afford. This will only lead to more problems down the road.

3. A vacation home is a great way for you to make additional money if you know what you are doing. If done correctly, the rent that you collect will be able to pay your mortgage. This means that you will never have to pay any out of pocket expenses. But this is not quite as easy as it sounds. Remember, this theory only works if you can actually rent your vacation home enough times during the year. 

By researching the vacation home that you are interested in, you will be able to determine how much money you can rent it for. By using this number, you can then make a guess on how many weeks a year you will need to rent the property in order to pay your mortgage. With some research and simple math skills you should be able to do this with no problems at all.

Overall, when you are buying a vacation home you will run into many situations. By doing your research in advance, you should never run into a problem that you cannot handle. It is the people that skimp on the research step that have problems when they buy a vacation home.

 

Do you own real estate articles or stories and want to share with other investors? 
You have chance to win $100 Amazon Gift Certificates. We will give away 3 prizes for top authors each month!

Email your articles or stories to:  articles@buyincomeproperties.com

 

© Copyright 2001 - 2010 by BuyIncomeProperties.com               

 

 

Visit Real Estate Forums for every real estate investing topics!  Enter Here

    

Top of Page