Are you interested in real estate investing?
You don’t have to buy a duplex, a massive apartment complex, or even a second home and attempt to rent it year-round.
There’s a better, easier way to invest in real estate.
By buying a vacation rental property you can invest in real estate and have a vacation home that you can use when you want.
If you’re not sure how to buy vacation rental property, keep reading to find out how to make this investment happen.
Choose a Location
First, you need to do your research on where to buy your property. You should choose a location that’s important to renters – not necessarily to you.
Check for properties near scenic areas: lakefront, coasts, beaches, or other popular scenic travel destinations. Also, consider nearby amenities and attractions. If you can find a good balance of nearby attractions and scenery, then you have a good location for a potential rental property.
Once you have an idea of a location, you can use an online search to find available vacation rental properties, or you can employ a local agent from the area to help you find a vacation rental property.
Now that you’ve found a property, you need to calculate your income and expenses. Look at what other rental properties in the area go for.
Also, you need to estimate what the occupancy rates are for properties in that area.
You can use a rental property calculator to help you determine your income. Simply input your expenses (both purchase and recurring operating expenses) and your monthly income.
Finance the Vacation Rental Property
There are a few different ways of financing a vacation property.
A conforming loan requires a downpayment of around 20% and a credit score of 680 or higher. Qualifications for conforming loans for vacation rentals are more lenient than for a standard rental property.
A portfolio loan can be used to finance multiple rental properties.
A multifamily loan is used for properties with 2 or more rental units.
A short-term loan is a bridge loan used as interim financing until long-term financing can be secured. This includes hard money loans – loans secured by a property.
Advertise and Manage the Property
Once you have finally acquired the property you need to advertise and manage it. Obviously, if you live near the property you can manage it yourself. But if you’re not in the area, or don’t want to manage it, you can hire a property manager or management company to help you.
Hiring a company to manage the property can be beneficial even if the property is nearby. You can save yourself a lot of time by having someone else check in on the property, list it on rental websites, and manage a system to let guests and maintenance staff onto the property.
A property management company can also help you draft a lease, stay compliant with local laws, screen tenants, and collect rent.
That’s How to Buy Vacation Rental Property
Now that you know how to buy vacation rental property, contact John’s Pass Condos to manage it. We have professionally managed rental properties along the Gulf Coast of Florida since 1993. We can help you manage properties anywhere from Clearwater to St. Pete Beach.
We make working with us the easiest way to be a successful landlord in Pinellas County, Florida.
Contact us for a free assessment and rental income valuation.