Vacation Rentals

[Jeremy Aldridge]

Does anyone have any experience is vacation rentals? I'm just north of Charlotte, NC and have played with the idea of mountain cabin rentals and ocean front rentals. Good investment/bad investment? Upsides? Struggles? Any thoughts on the topic would be helpful. Thanks in advance!

[Erica Muller]

Hi @Jeremy Aldridge! I've been selling vacation rentals to investors in Orlando for almost a decade now. If you're new to it, here is what you want to pay attention to: 

1. The location should be within an hour of a major airport. Preferably an international one. 

2. If you are going to look at Florida you should be aware of the high cost of insurance anywhere along the coast. It takes a huge chuck of your profit. The coastal areas are the most high risk for hurricanes here in FL so the cost of insurance is much higher than the areas that are inland such as Orlando. 

3. Beds/baths. Here in Orlando the higher you go in bedrooms the more income potential you have. 6+ bedroom homes are grossing six figures while 2-3 bedroom condo and townhouses are lucky to see 25K a year in income. 

4. Management. You need a good PM. If you try to self manage from afar it's most likely going to be a disaster. It's worth the fee if you have a good PM. They should also be able to put bookings in place as well. I would talk to @Gerard Lester about this. 

5. Furnishing expense. Please keep in mind you will have this and need to factor this into your budget. You have to be willing to make it nice inside as well. There's a lot of competition and the ones that book first and the ones that are decorated nicest and offer the best amenities both inside the home and around it. 

6. The view. Don't buy anything without a view. Preserve is better than looking at another house. Mountain and lake views are great up North. In Central Florida a preserve is better than a lake because people are scared of alligators. 

If you need any more advice feel free to reach out. I'll send you my number if you'd like to chat. I also have spreadsheets on Orlando properties you can look at that you might find helpful. 

Good luck!!