Mountain Cabin versus Beach Condo

[Bryan P.]

We have completed rental property #1 and are now looking for #2 with someselfish needs as part of the deal. Trying to decide between a cabin in the ASKA Adventure Area (aka North Georgia Mountains) or Beach Condo (panhandle of Florida) that we can use when not rented. We are scared of Condo dues and insurance, but worry about the “rentability” of a cabin? Anyone crossed this obstacle?

[Buddy LaRue]

At the chance of sounding like a downer, I have to say that I don't like either scenario, for a few reasons.

1. "that we can use when not rented". If you're expecting cash flow, your best bet is annual leases that bring you regular cash flow.

2. I hate investing in condos. You don't really have control of the property, the HOA does, if the complex drops below 70% owner occupancy your exit strategy gets blown out of the water as banks will no longer lend, leaving you only cash buyers which usually drops the sales prices. Also, HOAs are a pain with all their rules, regulations and wanting to approve your tenants.

3. "rentability" of a mountain cabin. I'm sure there's some, especially during hunting season, but I don't know beyond that.

Instead of buying either as an investment property, have you considered buying an investment property that you can rent on an annual basis, with good cash flow, then taking that cash flow and renting the mountain cabin or beach condo when you decide to get out of town for a vacation? Your vacation plans aren't tied to your purchase, you can go to either and your investment pays for it!

Best of luck in your investing!