Short Term Rentals / Vacation Homes - What Is Most Important For You?

[Danae Pitcher]

For those owners or folks who are looking to purchase a Vacation Rental, what is the most important part of owning this investment for you?  Most of my clients over the years have cited the ability to use the home for friends and family members and have it cover some or all of the costs of ownership.  When you think about this purchase, what stands out the most?  

[Zach Edelman]

Cash on cash return, multiple exit strategies are two great ones. I'd also say the probability/likelihood of future regulations. Although you can't predict this, it is certainly worth considering. For example, true vacation markets offer a lot less risk of future regulations than urban markets do. So if numbers pencil similarly for a deal in a vacation market as for an urban market, and potentially even slightly worse, it could still be worth investing in said vacation market instead of said urban market.