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Old 08-10-2017, 10:02 AM   #41
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It ends up being a personal choice.
Yes. In our case, parents had a cottage whereas we always rented summer and winter getaways but had an acreage with 20x40 pool, jacuzzi-all the toys. Now both my boys have cottages.
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Old 08-10-2017, 03:11 PM   #42
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Agree with others that it's not a great financial investment. In our case, it was a costly lifestyle decision which after 4 years, we decided to sell at a loss. I think if you're VERY wealthy (i.e. the money doesn't matter), it's great to have cars, clothes, toiletries, etc. in multiple places you enjoy and go freely between them as you choose. However in our case we did have to cut back on other travel as well as cut back on investing for ER in order to afford our second home. And there was always a "to do" list despite having hired help to deal with housekeeping, landscape and pool maintenance. We decided we'd rather free up a lot of cash and just rent when we go places. We enjoy the flexibility and variety more than we enjoyed owning a second home. YMMV
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Old 08-10-2017, 04:39 PM   #43
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^I can relate to that.

We recently had five years of no home ownership whatsoever after 35 years or so of ownership.

We really enjoyed not having the resposibility and the burden of ownership. We were also surprised at the increase in cash flow. We recently bought and we made our first visit to Home Depot. $96. The visit brought back memories. We renovated two homes with a great deal of Home Depot product. IF we were to consider another property in the future it will definitely be a condo type property.
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Renting Out to Offset Some Carrying Costs
Old 08-13-2017, 11:43 AM   #44
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Renting Out to Offset Some Carrying Costs

For those who rent vacation properties to offset some of the carrying costs, do you title the vacation property in your own name or hold it via an LLC or LLP?

If LLC/LLP, did you buy in your own name and then put the property in the LLC/LLP or create the LLC/LLP first and use it to buy the property?

Other than some liability protections, are there any tax benefits to holding via an LLC/LLP? Would there be any significant hassles/costs involved to convert from a vacation rental to primary residence in the future.

If you are onsite merely to supervise/inspect work being done or that has been completed, do you count that as a maintenance visit or personal use (for tax purposes)?

Thank you in advance for sharing any experience, thoughts, suggestions, etc.

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You can rent the vacation home out for up to 14 days, tax free. That may make the decision easier.
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A very smart friend of my wife had a vacation home built on the Texas Coast. Her rental fees paid for it in five years! It is booked solid.

She did a lot of homework on what types of houses rent the best and hired a cleaning service to keep it very clean & attractive. She runs her own business with a dozen employees so the rental business fits her personality.

They love the coast and have built a new retirement home 2 hours away and plan to spend every weekend at the beach house with family when they retire- no more renters.
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Old 08-13-2017, 03:35 PM   #45
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Not a great financial investment as others have noted. But many here do not buy 2nd homes as investments. For me, our snowbird condo was initially a place where I could escape work for a while. Now 15 years later, it's a great place to spend the entire winter. I like to stay at my own place. I'm not a fan of hotels or rentals. The "burden" of 2nd home ownership is well worth it for me.
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Old 08-13-2017, 04:22 PM   #46
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We have a property manager to manage all our enhancements during the summer when we are back north. Best decision we ever made. (Not the enhancements, the PM!)
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Old 08-13-2017, 04:29 PM   #47
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I am posting this from our 2nd home. At 7000-ft elevation, it is the place we go to escape from the brutal 110+ heat of the low SW desert. When up here, we just park the car, and rarely leave the property. Not much around here, an unincorporated town, except for a couple of hardware stores, gas stations, and some roadside cafe's.

It's relaxing, and in the winter we also go up to watch snowfalls. It's 2-1/2 hour drive one-way from the main home, so is not too bad.

I paid more for this home than for the main home. However, ever since the housing bubble burst, home prices in this area have not recovered as well as in the metropolitan area. The latter has in fact set new highs. I guess 2nd homes are not yet back in demand, but it's ok with me as I did not do this as an investment.

By the way, I still like to do foreign travel as well as RV'ing and staying at timeshares.
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Old 08-13-2017, 04:29 PM   #48
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IMG_0638.jpg

I agree on if being a lifestyle choice not investment. We have to put in a new driveway, roof, and heat pump this year but evenings like this make it totally worth it.
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Old 08-13-2017, 04:40 PM   #49
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We just finished the build on a custom 3 bed 2 bath house in my wife's Thailand village, it's a 3 building complex now with a 1 bed 1 bath guesthouse and a large open air kitchen with living area and another bathroom. All in for around 70k, we usually go back every year, will be going for 2 months in November/December







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