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Updated over 2 years ago,
SELL VACATION HOME NOW OR AirBNB/VRBO IT?
Last year I bought a gorgeous 20 acres country property in a famous small town in the middle of a forest with a 2008 built house in like-new condition. I put the property in a LLC with the intention of using it as a winter home (warmer weather there in the winter) and renting it out AirBNB/VRBO for 5-6 months when I'm not there at my summer main home. However, the real estate market has been so hot since I bought it and it has now gained about $110k (or more) in equity in just a year. So I put it up for sale fully furnished (Spent about $10k on furnishings) just to see what happens and I got multiple offers within a week. I'm conflicted, my heart says keep it and my mind says sell it and make $110k+ profit after just a year because I feel we are at the pinnacle of the market and I sense that the equity will remain pretty stagnant for some years to come judging by past local real estate values through the years prior to the pandemic hot market and now the higher interest rates. I never did short term rent it out yet but I fear it could be more hassle than it is worth, especially since my main home is 12 hours away up North. I would have to hire a property manager which would cut into my profits. There are a few other short term rental homes in the area that seem to do well but don't look nearly as attractive or private as my property.
Question: Would you sell the property now or keep it and AirBNB/Vrbo short term rent it out half the year? Is short term renting worth it when living far away from the rental? As we speak I have offers I have not accepted yet and can back out and take the house off the market. I put it up for sale by flat fee MLS without a seller agent, (2.5% will go to the buyer's agent). Capitol gains tax will be 15%. I'll take home about $60k to $70k after paying commission and taxes which will be about a 25% profit gain. I'm conflicted, any insight would be appreciated. Thanks.