Buying a VRBO Property with potential economic downturn

[Joe Sullivan]

Hell Community, I'm under the assumption that we'll see an economic downturn in the next year or two.  I am for a property to buy in the Palm Springs area.  I believe the area I'm looking at will cash flow well right now.  However, I know 2nd homes and discretionary income can drop during economic downturns.  Is the economy, or potential changes to it, giving people pause about investing in vacation rentals and vacation locations at this time? 

Thanks,

Joe

[Luke Carl]

@Joe Sullivan in the 2000s I owned a bar in New York City not far from Wall Street. In late 2007 everyone was saying we were screwed. The first thing to go will be booze and vacations. 

My bar served $2 beer. 

When 2008 hit, you couldn’t get in the door of my bar for the next two years. People didn’t have jobs to go to so they came and drank my cheap beer. 

If you’re selling the $32 dollar cocktail of vacation rentals (million plus) your bar will go out if business. If you’re selling cheap beer for out of work families.... you’ll be swimming in it!