Cooling vacation home zeal with sound financial thinking.

[Patrick Temple]

My wife and I are professionals who do not work full time in real estate.  Over 15 years of marriage in northeast Oregon, we have returned each year to a popular regional destination just a few hours away. Constructing a small vacation rental at the site is a possibility we are beginning to investigate since it seems to match what we already do travel-wise and rental occupancy rates look favorable to property owners given the right circumstances.

We already own a single family rental in our hometown that has been productive for us over 15 years, but the nature of a vacation rental is a different animal altogether.  We have sketched out in a broad sense our target client and booking rates on comparable properties to what we have in mind.  The outlook for this venture continues to look "plausible", but the devil is in the details and the questions you didn't know to ask.

My questions and interest will concern:

• Composing a comprehensive business plan for a vacation rental from construction to client use.
• Smart financing
• Tax considerations
• Viewing the bottom line when using an income property for personal use