Investing in vacation rentals from afar

[Brianne H.]

Hello, I am considering investing in a vacation rental and just looking for a little advice. I am a new investor, have done a few flips, and have been a landlord when renting out our basement suite before, but otherwise fairly new to rentals. After the sale of our next flip, we should have enough to be able to purchase a rental, depending on area and amount required as down payment. I am considering several options, but vacation rental is top of my list so far. 

My city is not going to give me the cashflow I'm looking for as purchase price to rent ratios are too high, so I am looking outside my area, which I realize can be more risky and have more challenges. I know of someone who owns 3 units in Cabo, and has done very well with them, so that's where I have started my research, but am open to other areas and suggestions. My primary goal is cashflow, though appreciation would be nice too. I have a few questions that I'm hoping people won't mind answering to give me a clearer picture on vacation rentals. 

Do you invest in vacation rentals? Where are they located? Where are you located?

What challenges have you experienced being an owner from afar?

Have you had issues finding reliable property management, or anyone else? 

How often do you visit your vacation rental? 

How much cash did you put into the property (down payment & any necessary improvements)?

What were your closing costs?

What's the market like in your vacation property area?

If you own a condo and rent it short term, like Airbnb or VRBO, how do you work out getting the keys to and from renters? Same thing with a gated community - how? 

Any pitfalls you can recommend avoiding or being cautious of? 

Have you had any issues renting via Airbnb or VRBO?

What is your vacancy rate like? 

Any other words of wisdom? 

Thanks!