Buying a Rental / Vacation Home

[Justin Escajeda]

Hello everyone, for the last year and a half I have been deeply considering and researching purchasing a vacation home. When I say that I mean, I want to buy a property and be able to visit there once in awhile, but for the most part, have it rented out the rest of the year. More specifically, I have been looking into the Outer Banks, NC. I feel that going with a condo would most likely be better for an owner living 300 miles away, but the condo association fees are expensive. I am very on the fence about this because I am not only considering returns and costs, there is a bit of emotion involved in my decision because I actually want to vacation there as well (and I have been going there all my life). Does anyone have any experience with this? Or have any tips on what to look out for? Thanks again everyone, this community rocks!

[Dana R.]

Aloha Justin,

I own two vacation rental condos in Waikiki. I stay in either condo when I need a sun fix, but otherwise, I rent them out through VRBO. Both condos are really popular with guests and get booked out months ahead of time. So, your idea of buying a vacation rental condo in an area you like can work… IF the numbers work out and, like @Heather Bayer suggested, you do your research to find out what kind of properties rent best in your area.

I don’t know what condo prices are like in the Outer Banks, but here in Waikiki, condos are expensive. So, in order to make the numbers work for me, I had to purchase my unit in a certain price range. It took almost a year of looking before the right unit came on the market. When it did, I put in an offer that day.

Vacation rental purchases can be emotional, I know. Especially when you are purchasing a rental in an area you want to visit. You can already picture yourself in your new condo, sipping a Mai Tai on the lanai, watching the sun set over the Pacific Ocean. Sounds ideal. But ha ha, then you rent out your place and a guest calls you at midnight your time to say the toilet is overflowing and what should she do?

So, buy smart. Forget the Mai Tai on the lanai until you’ve run the numbers to see if condo purchase makes financial sense.

Good luck! I’ve had a lot of fun renting out my condos to guests all over the world.