Updated about 4 years ago on . Most recent reply
Short-term rentals and vacation homes
Analyzing a condo for purchase as a vacation home and to use as short-term rental. The condo was completely renovated in Sept. 2021 and it is a good price. Great location as well. Condo is occupied by a tenant and the lease ends in April 2022. The rent amount is not enough to cover expenses resulting in negative cash flow while it is occupied by the current tenants. The property would be available for use 75% of the year in year 1. There is also the risk that the current tenants are not taking care of the property.
Does it make sense to purchase it or look for something else?
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Happy to see another from Raleigh!
WHat I like about your deal is that it has long term potential as well as STR opportunities, so that tells me location draws both and you have more options. I wouldn't turn that type of deal down if the price was right and it made sense long term. You mention current tenants may not be taking care of the property...have you had a chance to see the inside and investigate? That could be the deciding factor.
Best of luck !