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Updated over 4 years ago on . Most recent reply

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David Smith
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Vacation Rentals Financial Rules of Thumb

David Smith
Posted

Hey, I'm looking at a few Vacation Rentals to NH lakes region.  Prices have skyrocketed but I need to understand the normal play here.  Do most successful Vacation Home rental owners Leverage to 15 yrs?  Do they use 7 yr arm loans?

Do they get cash flow and if yes how long does it take?  Months?  Years?

Or is the play only to pay off some of your own family's rental property? 

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Collin Hays
#1 Short-Term & Vacation Rental Discussions Contributor
  • Property Manager
  • Gatlinburg, TN
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Collin Hays
#1 Short-Term & Vacation Rental Discussions Contributor
  • Property Manager
  • Gatlinburg, TN
Replied

I always go 30 yrs.  If I can borrow for under 6%, I’ll borrow as much as I can, for as long as I can. Your results may vary.

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SMOKY MOUNTAIN FALLS INC.

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