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      02-05-2012, 10:18 AM   #1
roastbeef
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vacation rental property ownership questions...

i'm sure there is someone on here that has something.

i'm planning on buying a condo this year in the $200-250k range to rent out. i've been entertaining the thought of a vacation rental instead of a residential lease.
first thought that comes to mind is hawaii, but i'm not sure if that market is beat to sh*t because of the economy and the vacancies in the real estate market.
any ideas/advice from someone who is actually doing it, or lives in hawaii?
i know the price range is not much, but i've found some decent looking properties with ocean views in that range. i'd stay away from land leases and high HOA's.
i just don't know if there is a market for vacation rentals for $2-300k condos.

i'm not opposed to properties in other locations or international, but no mexico.
thanks
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      02-05-2012, 10:36 AM   #2
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i like roast beef i had a sandwich for lunch actually..
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      02-05-2012, 12:18 PM   #3
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Quote:
Originally Posted by roastbeef View Post
i'm sure there is someone on here that has something.

i'm planning on buying a condo this year in the $200-250k range to rent out. i've been entertaining the thought of a vacation rental instead of a residential lease.
first thought that comes to mind is hawaii, but i'm not sure if that market is beat to sh*t because of the economy and the vacancies in the real estate market.
any ideas/advice from someone who is actually doing it, or lives in hawaii?
i know the price range is not much, but i've found some decent looking properties with ocean views in that range. i'd stay away from land leases and high HOA's.
i just don't know if there is a market for vacation rentals for $2-300k condos.

i'm not opposed to properties in other locations or international, but no mexico.
thanks
I don't have a place over there, but have a close friend who just picked up a condo in Maui. I guess it comes down to how you're planning on paying for it and what you're looking for as far as return. $3-400K might be a more appealing zone for a rental property.

The nice thing is that the property value will hold at worst and more than likely appreciate over time. If you're paying cash for it then as long as you can cover all your costs (ie. property management, condo fees, utilities, etc) it would seem like a great idea. Different story if you're financing it and need to cover a mortgage on top of the operating costs. Talk to the property management companies and look for locations that run high occupancy throughout the year and not just at peak holiday seasons.

Vacation rentals also give you the opportunity to use it yourself when you so choose. Getting others to pay for your vacations while gaining equity in the property would be the perfect scenario, no?
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      02-05-2012, 01:46 PM   #4
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      02-05-2012, 10:59 PM   #5
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Quote:
Originally Posted by Cdnrockies View Post
I don't have a place over there, but have a close friend who just picked up a condo in Maui. I guess it comes down to how you're planning on paying for it and what you're looking for as far as return. $3-400K might be a more appealing zone for a rental property.

The nice thing is that the property value will hold at worst and more than likely appreciate over time. If you're paying cash for it then as long as you can cover all your costs (ie. property management, condo fees, utilities, etc) it would seem like a great idea. Different story if you're financing it and need to cover a mortgage on top of the operating costs. Talk to the property management companies and look for locations that run high occupancy throughout the year and not just at peak holiday seasons.

Vacation rentals also give you the opportunity to use it yourself when you so choose. Getting others to pay for your vacations while gaining equity in the property would be the perfect scenario, no?
i like the idea of an actual house, but i can't touch a house close to the water, which i feel will better attract people to the rental.
there are tons of condos steps from the beach in the $2-300k range. land leases and high HOA's are profit killers (i would actually never buy property with a land lease), but its going to come with a condo, and because of the lower cost, its obtainable in the near future.

i'm a small time investor, i would be financing. i'm not necessarily looking to make a large, quick profit, but more so liking the idea of acquiring property on someone else's dime.
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      02-06-2012, 12:31 AM   #6
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You should tell the guy wondering how to afford an M3 how you can afford vacation homes. You guys could have a lot of fun chatting.
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      02-06-2012, 12:58 AM   #7
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i'm in an e46 325 as a compromise while i achieve my financial goals. i can afford an m3, but i'm choosing to be financially responsible.
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