Vacation Rental - to Buy or Not to Buy - that is the question

[JDARNELL]

I have an overnight rental in a tourist area and long term rentals. I am happy to answer any specific questions you have based on what I have seen in the last 24 months and what I am seeing right now.

 

[Ready]

Since you’ve provided virtually no financial information on yourself it’s impossible for us to give you any meaningful feedback.

 

[Finance Dave]

The plan was/is to pay a management company to do the repairs, answer calls from renters etc. Also, the goal was not for income, but for capital appreciation - so breakeven from a cash flow standpoint is fine. Get into the market, leverage my current home to get a foothold at the beach. When the time comes, sell our house and the condo, and and buy a house.

IMO that's a very risky plan. Using your home to "invest" in a rental? No way. What guarantee do you have that the property will appreciate? There have been many times where property has not appreciated. There have also been many areas where property just flat doesn't appreciate much.

You obviously have your mind set on it, and nothing I say will change your mind...so I'm not even sure why you asked on here.

 

[ivinsfan]

IMO that's a very risky plan. Using your home to "invest" in a rental? No way. What guarantee do you have that the property will appreciate? There have been many times where property has not appreciated. There have also been many areas where property just flat doesn't appreciate much.

You obviously have your mind set on it, and nothing I say will change your mind...so I'm not even sure why you asked on here.

If it was that easy, everyone would do it..it's like free money...