All Forum Posts by: Alexander Cydzik

Nick,

Have you ever thought of going to a long term rental strategy or are you satisfied with the current situation? Is a long term strategy not profitable compared to your current summer situation?

@Peter Radonich

First off I have been looking from the property owners approach. Some things I have been looking at in that respect is what towns have seen the largest growth and are projected to continue growing. 

These factors are a good starting point to look at but when you drill down to the specific areas the amenities add up which can create an additional benefit. For example, I believe North Falmouth was an area that had seen high growth Y/Y as well as projected growth (im talking about the 5% range). While they may see projected growth in a specific area, a family renting a cape house for a week would want to rent a place close to the beach or at least a quick drive. 

Honestly some of the best houses are in the 200-300k range that are relatively new or are basically turnkey. From what ive seen for current rental prices in the east falmouth area, for example, you could get 1500+ a week for a 2/3BR home. As a Summer property your money making window is is really late june/july/august and you are hoping to get booked as much as possible. 

As a year round property the rent is about the same but it is per month. You are gambling with a solid cash flow from a year round rental or try to really heat up in the summer and maybe the trailing months in between. 

Obviously the Cape is a huge summer spot, as anyone from MA would know, and summer rentals are always going up. I would want to speak with a property company or realtor to see what are the summer rental vacancy rates as well as the full time rental prospects. 

An interesting approach I would take would be to buy around June when prices are lowest and number of houses for sale are highest AND when the summer rental market is heating up. I would rent it out all summer, see how it goes, and depending on the results continue to make it a summer rental property or switch to a full time rental. This would allow you to test one market while being able to easily switch later on. What you dont want is to sign a 1Y contract in October and then completely miss out on testing the summer market opportunity. 

Disclosure: This is just the plan I have deduced from research on numbers. I have no Cape rental experience and im sure there are those out there who would know more based on location and experience. 

Thanks Mike. Its an interesting way to play the rental market with two equally profitable situations. I appreciate the feedback

Hi all, 

I am currently new to BP but am interested in investing in rental homes in Cape Cod. I would like to know if anyone has experience in the area and can speak to the long term/summer renter as well as what your main marketing strategy is (airbnb, homeaway, local agency). I have done extenshive research based on zillow data for what seems to be the best areas as well as current rents but long term and summer rentals are two very different strategies. Also any input and recommendations are greatly appreciated.

Thanks guys, I look forward to hearing back