Vacation rental

[William Valdez]

Hello everyone, I'm a newbie just getting started into real Estate investment. Was wondering if anyone had some insight on vacation rentals. Are they a good investment and what kind of income do they produce?

[Pete Slaga]

Hi William,

If you have a specific market in mind then there are a few preliminary steps. 1) Does the current area allow for Short Term Rentals. You can usually get this information by calling county and city license departments. 1A) any property you consider you should make sure if there is an HOA whether they allow for them. 2) Understand if there is any potential changes to Short Term Rental regulations. 3) I would reach out to realtors and ask if they have any properties for sale that are vacation rentals and if they could provide the income side of how the property has done as a rental. (Airdna, Everbooked are good but nothing beats actual specific data.) 4) Find out what you can about seasonality of the market as a vacation rental will have seasons and you need to factor that in for cash flow purposes.