Is a Vacation rental investment any good?
Well. From what I’ve heard they can be very profitable. That’s good. A second perk is the vast range of property management available. Amongst the challenges we find pricing, vacancies and wear.
A vacation rental investment will usually have to be in a very good location in order to be attractive amongst tourists. If your rental isn’t in a popular area, finding customers will be hard. Without customers, no money..
What can we do about this?
I don’t know yet. But I’m about to find out as me and my co-investor here in Florida is about to try something. We bought five houses close to the Mexican Gulf in a forgotten little charming town called Aripeka. One of the houses is a duplex with one 1 bed 1 bath unit we were going to use for ourselves. As we aren’t always around we have decided to see if it works as a holiday rental.
The area isn’t usually a holiday destination, but it should be. People just don’t know it exists. So what we are doing is opening peoples eyes. We show them, that’s it’s the best holiday destination and that people have missed it. If this works, we might turn more of our homes into holiday rentals and enhance our cash flow.
I think you can find more places like this. We have, for instance an urge to create a self sufficient, artsy place in the woods in Sweden and turn that it into a vacation rental. If it works there could be vast profits in that too.
Should you try a vacation rental investment? Why not? If we can make it our own way, we can avoid the pricey condos on Miami beach and go cheaper than cheap instead. It’s a business of extremes! Extremely cheap on a “weird” location or extremely expensive in downtown Marbella..