Should I buy investment property or vacation rental?

[Ramon Vargas]

I currently own two rentals that I paid off in my city. So now I’m looking to see whether I buy a third rental in my city or I should get a vacation rental in Arnold, Ca.?

[Lucas Miles]

@Ramon Vargas I have always been nervous about investing in vacation rentals. Concerns being in situations where money gets tight will there be a demand for vacations. Rentals are great as people will obviously need a place to live. If you go the vacation rental route, make sure you have a back up plan if demand for vacation homes goes down.