Buy & Hold vs. Vacation Rental

[Tobey Porter]

Hello BP - I'm interested in opinions on Buy & Holds vs. Vacation Rentals. We recently our first 2 buy & holds. We're going to do a HELOC on our primary residence to fund the down payment on this next purchase.

The money from the HELOC could potentially fund 2 buy & holds in the area we are starting. It could also fund a pretty nice vacation home in Sarasota, which we could also use for family vacations.

Thanks in advance for any thoughts/advice. 

[Jeff Graves]

@Mike Scott-Smith Thanks Mike.  I love living near the beach.  And as you pointed out one critical factor for vacation rentals to succeed is the destination.  As Michael pointed out for Florida they have one of the highest rated beaches, Maui is often rated the #1 or #2 island in the US and World - so both places have a phenomenal attraction to people all over the world.  This is key.  

What's on your bucket list?

Not that it has to be beaches...obviously, but it should be something that perhaps not readily available, but highly desirable. A place people dream about going to or doing some particular activity. 

It's not always all about the ROI...

Each investor will have their own objectives they wish to achieve from their investments...so with that in mind, which is best, a long term rental or short term rental?  Neither...or both...it's up to you.

Aloha,

Jeff