Investing FL, GA, or NC?

[Amy Kendall]

We recently bought a 4-plex in Florida, it has gone well so far.  We are looking to buy another, but maybe focus on Investing in more of a Vacation Rental this time, as we have 7 long term rentals and we feel our cash flow is good right now, and would like to explore the possibility of having a vacation rental, somewhere we would use as well. I would love to hear from people who own properties in these areas, and what considerations we should consider at this point. Questions that have crossed my mind so far:

1. Taxes? 

2. Landlord friendliness of each state

3. Great locations - near beach and amenities?

4. Flood insurance costs....

I would really appreciate any advice on the vacation rental side, I have no experience doing this yet, and I am not sure it is something we would really want to get into or not.  I would also love to hear from people who have long term rentals in those areas, as we may go that route as well. Thanks! 

[Travis Rasmussen]

@Amy Kendall

Oo! I love this kind of stuff.

My wife and I invest out of state with Vacation Rentals, primarily Airbnb. We own 1, closing on a 2nd, and want to get more.

We started out just doing extra rooms in our house and we have learned a lot, and you ARE ABSOLUTELY asking the right questions.

To dive right into it, the first thing I always recommend is to ALWAYS buy not only where it is legal, but we prefer to buy in places that already have established regulation. As in, I rather buy in a city that is going to tax me on my vacation rental, but has decided they are legal there. Compared that to a city that has not passed regulation, but I am hoping and praying my STR can stay...a well....STR.

We personally don't allow people to stay in our properties more than 2 weeks. Primarily, that's because we live in CA where it's very tenant friendly. Someone stays in your property 30 days and that are gifted what seems to be more rights than that of the property owner. 

If you are doing this not just as a "2nd home" I always encourage to look at Year-Round travel destinations. There are many that people are ALWAYS traveling too. I like that idea of my "slow season" not being so slow. I also love the consistency. 

Flood insurance, depends on the area. I hope this helps!