If you have some extra money saved up and you're thinking of a useful way to invest it, one idea to pursue is to buy a vacation rental. Owning this dwelling allows you to rent it out to make money off it, which will hopefully cover the cost of the mortgage. You don't want to just buy the first property for sale that you find with the hopes of turning it into a vacation rental, though.
You want to approach this investment opportunity smartly, and may even wish to hire a real estate agent who understands investment properties and can point you in the right direction. Here are some smart ways to go about buying a vacation rental.
Find a Desirable Area
Any property can technically be listed as a vacation rental, but that doesn't mean that there will be demand for it. There are lots of things that make a particular vacation rental appealing to people, but a key factor to consider is the area in which the dwelling is located. Think of places that people visit frequently. This means that they need lodging, and many of them will turn to vacation rentals. For example, a townhouse just a few minutes' walk from a popular beach for tourists is likely going to be a smart investment for you.
Give Strong Consideration to a Condo
Many people buy condo units to use as vacation rentals, and there are several reasons that this approach is a good one. If you're not going to be living in the vacation rental when you're not renting it out, you want to keep maintenance to a minimum. With a traditional house, you'll need to visit to cut the lawn and perform other maintenance tasks to ensure that the house is appealing looking. With a condo, your condo fees will go toward maintenance of the grounds, meaning that your hands-on involvement can be minimal.
Consider the Need for Renovations
You want the interior of your vacation rental to be hip and appealing, as it will stand out in the online advertising and hopefully generate more interest from renters. When you browse various properties, keep in mind which ones will need to be renovated to bring up to your standards. You may find a place for a good price, but if you need to put $25,000 into it to make it appealing, the value may not be as good as you initially thought.
To learn more about your options, contact services such as Vacation Cottages.