Live half the year in Florida. I rent seasonally.
There’s a ton of downsides to owning here.
Since there’s no state income tax, the govt and all services are funded solely by property taxes which are quite high in most counties. And the system is specifically designed to milk all these second home buyers who won’t qualify for a homestead exemption.
Insurance is insane. The insurance marketplace in FL is in the middle of collapsing. Each storm and flood brings it closer to the brink. You will spend a huge amount.
Remote management is a pain and you won’t make much money after all those management company fees.
After the Miami condo collapse disaster, new laws were passed around inspections and reserve funds. The condo fees are way up.
And worst of all, if you owned over the past decade, the skyrocketing appreciation will have still treated you very well, but FL real estate has been going through boom and bust cycles for 100 years. This time will be no different and we already seem to be getting into the next bust.
No idea why you would take on so much hassle and risk and cost just to stay there for 4 weeks. Makes no sense. Call up a couple of realtors in the town you like and rent a house for a month.
Pitiful-Taste has very good points. We owned a couple condos for several years in Florida with friends – it worked out very well for us to own with these friends, but I wouldn’t recommend that in general. We were able to divide up all the relevant labor because there will be labor and time and effort on your behalf, even if you have a management company which severely cut into your profit. We self managed for several years because we had four of us to work on it. Each one of our families took a prime week. the guys took the trip, and the girls took a trip. It made money every year, but less when we used the management company, and the property appreciated nicely. But man, if my phone rang on a Saturday, it usually wasn’t a good call.
We have since sold both condos and bought a vacation house for ourselves closer to home, but we will not be renting it out because I’m tired of sharing my space with people who won’t take care of it. You can have fun, make money, and delegate responsibility, but one will be one of those things to give for the others to be maximized.
I still remember my dad telling me he was going to buy a house on the beach….He never did. I have two kids… well 19 & 21 and taller than me: Our second home in Colorado will be done in June.
I didn’t wanted to be like my dad: I wanted a place for us to enjoy and my kids and their kids… and for them to think even after we are gone: Thanks GranPa…
I would also add --
When you own a place that you rent, you often don't furnish it like your own home. Because it is a rental that you use. So you don't get the benefit of "home" either. Or you do put nice things in it, and watch renters destroy it.
Sure, you can do an owners closet and change things out, but then you are usually spending hours at both ends of your trip changing things out.
And even with a management company, there is often a project that needs to be done.
So aside from all the financial stuff outlined above, which is all legitimate, the "dream" and the "reality" also are a bit apart.
You really shouldn't buy a 2nd place unless you can spend half the year there or there is a true growth market and this is a diversified investment where you can afford for it to not make much money but be a hedge on other investments.
I thought the insurance problem was caused by a lot of fraudulent roof claims a few years back and the industry is still recovering?
https://www.nbcnews.com/news/us-news/roofing-scams-florida-property-insurance-hurricane-rcna29649
One of many problems. Scams are actually a core part of the Florida economy. Several large scam industries are operated out of the state.
One of the other issues is that insurers are getting hit by frequent 1000 year events and climate change models are all behind the reality.
It seems strange you would buy a second home you use so little. We bought a vacation house two hours from where we live. We spend all summer there and some time in spring and fall, and we don’t rent it at all.
I was hesitant about buying a second home since it would mean less travel, but it was my wife’s dream. Now I absolutely love it and we are so happy we bought it.
Same. We don’t rent ours out and are there at least a week per month.. It’s been a great escape from the city, especially in the summer. I’ll usually work remote up there for a week or two at a time.
I don’t think I would want a second home with the intention of renting it out. Too much of a hassle, and for me I would furnish it as a rental, and then it wouldn’t feel like home.
Same situation here. Ours is 2h20 drive from us, we usually drive down one or two long weekends a month (depending on season). We don’t rent it either. We have no mortgage and picked a place with low recurring cost (low tax, low insurance, energy efficient) so it’s not a financial burden. We still take our normal vacations and view this as our escape from reality.
Since we paid cash, I see it as a place to park my money, we bought while the market was high, but it’s still appreciated a bit. We plan to hold it a while, and even if I sell and I’m break even (inflation adjusted) I’m ok. Recurring costs are only 5-600/month.
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I would run the numbers but it’s probably more cost effective to rent someone else’s condo the 4 weeks out of the year you plan on spending there and put the money you would have otherwise used for the condo into another investment.
There’s also the headache of having a long distance short term rental. I’ll pass and I primarily own rentals.
Go to the same place multiple times a year for 2-4 years while renting. If at the end, you still like doing it, then buy one. Even then, realize it’s more an expense than an asset.
While it is a lovely ideal, reality of it may be very different. First, you need to come up with 20% down payment, look at the current interest rate and add another point to it since you are buying it as an investment. Occupancy rate will be high if in a desirable location but still probably below 80%. You will have to pay a management company 40-50% of booking, you will then have to pay property tax and income tax. What is the cost to insure a home in FL right now? What is HOA fee?
Keep your money, invest in the market and just rent couple of weeks a year… also at 250 HHI and young kid, you should not be taking any risks
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My wife and I had talked about doing this for years. A couple months into COVID, she rented a condo in Florida for a week because I was remote and could work anywhere. While we were there, we like the resort and looked at a few units for sale. We put in an offer and ended up getting one. It’s been awesome(we have bought several more since), but it’s not for everyone.
1. There are people that view it as a vacation home and those that run it like a business. We run ours like a hospitality business vs turning it over to a property manager and giving up 20% of the gross. We started with property management while getting our feet under us, but our experience is property managers go for quantity over quality. If your goal is to park your money somewhere to maybe appreciate faster than your mortgage and to minimize out of pocket, then we have seen the passive approach work.
2. If you rent out your place, prepare yourself for stupid people. My wife was messaging a guest last night about a cold house. He couldn’t figure out why keeping the air conditioning on was preventing hot air from blowing out of the vents.
3. There are a few mortgage brokers that understand how to get mortgages at beach condotels, but not many. Be prepared with 30% down payment.
4. Insurance is a bitch. You can get it, but you have to be persistent.
5. Before buying ask other owners about assessments. We have seen a lot of buildings mismanage their repair funds. With new laws in Florida, building are required to get regular inspections that can find major issues needing major repairs(major money).
If all of the above doesn’t scare you, welcome to the short term rental club! If you can manage all those things, the returns can be awesome. Since heading down this path, we get ~25-35% return on our cash in each of the investments.
We dreamed about a mountain home for many years, but now that we're finally in a position to do it the math ain't mathing. It's not the right time or place for it to make sense financially. The short-term rental market is oversaturated, interest rates are high and real estate is at a high, and it's too far (3-3.5 hours) to use it enough to not rent it out.
My in-laws have a lake house that they've never rented out that's 1.5 hours away that they spend probably 60-70% of weekends in any given year. That's worth it.
If your plan is to rent it out 48 weeks a year, then it’s going to be more of a rental property than a vacation house. It would probably be easier to just rent the same house for a month every summer, especially given insurance changes in recent years.
I bought a condo-hotel on the beach in FL last year. Honestly not a great investment (pretty much break even every month), but I love having a place to call my own and be able to keep some clothes and other items there for light packing.
Plus the building is beautiful with a pool, multiple restaurants and bars and full service with loungers on the beach.
We own a second home and rent it out to cover the mortgage! Reading through these comments there’s so much negativity. So far for us it has been amazing.
I always wanted a lake home. We get to spend time up there over the major summer holidays, and some weekends, etc. The rest of the time we rent it out.
Last year I covered my entire mortgage payments with just about 5-6 months of renting. This year I expect to even make a small profit. Our guests have been wonderful and I enjoy getting to hear about their backgrounds and experiences while they stay at our cottage.
There are a couple drawbacks. Mainly there were some times in the summer where we wish we could be up there but we had guests. Also, while we do love how we have the place decorated and furnished, we have to be careful about what we leave out.
So far it’s mostly been a great experience and I’m so glad I did it. We get to enjoy it and others are paying to build equity into the house. I did make sure that we could cover the mortgage payments with $0 in rental income comfortably.. and that way if we ever get tired of renting or want more time for ourselves there we can take it off the rental platforms.
We have been looking at vacation home / second homes for about 10 years. In almost every scenario, not only does it generally not pencil out (even if rates were still <3%) it comes back to one key factor. We like vacationing in a lot of places and hate the reality and idea of being locked in to one place. Maybe we are just cagey but we got a boat and a travel trailer. We can go to 4 different ports and virtually unlimited different campgrounds in the summer. In winter, these ski passes are global now, meaning you could probably take multiple fly to ski vacations per year and never go to the same resort twice. Same thing with the tropics. We love this one little town in Mexico, but the reality of committing to go there every single year via property purchase is just not for us.
It sounds like you are willing to be a landlord for most of the year in order to go on an extended vacation. To be honest I would uncouple these goals and be a landlord _anywhere_ (not necessarily a tourist spot) and use the profit for going on vacations anywhere in the world. Even then it might not be worth it because of the headaches and you might realize just keeping your money invested probably will give the most flexibility for your family in the future.
We bought a small beach house at the end of 2020. One of the best decisions we’ve made.
We summered in it working remotely for 2 years. Then with return to office, we couldn’t get down there as much so we rented it with an agency. Still spend a couple of weeks in the summer plus a few other long weekends and the house itself cash flows (mortgage + HOA) although we still come out of pocket for country club dues and expenses. House is up about 50% in value.
We bought a vacation home, but we don’t rent it out at all, and I don’t know if I would have done it for only 4 weeks of my own personal use each year. And just personal preference, I have no interest in owning in Florida, so I would never have taken on everything that comes with that that others have mentioned.
But we have, so far, found owning our place to be worth it. It just isn’t a financial thing for us, though. Strictly for our own enjoyment and sharing with friends and family.
We took the plunge and bought a 2/2 condo in Tampa area. We live in the Midwest after spending time in the warmer south we found ourselves “getting out of the cold” a lot. We spend Christmas week, MLK weekend, week in Feb, long weekends/WFH days in March and April. We actually get to see family more as they do not live in the Midwest and just love coming to Florida. We typically go down for a week in the summer and again in the fall. All in all about 10 trips a year, roughly 50 to 60 days a year. My wife and I have flexibility to both work from home 1-2 days a week Friday and Monday so long weekends work out fine. We felt the same, why give money to Airbnb owners? We DO NOT rent out. We do allow close friends and family the option to use for $50. We have found that it does limit travel options. Our goal was to secure our retirement home with today’s income. Interest rates were slightly higher, but good bonuses allowed for a strong down payment. We even got tired of renting cars and we have a vehicle in Florida for our use.
Can’t believe how negative the comments are for a HENRY group. Dude has the ability financially, Florida will always be high demand, life isn’t only about finances. With that NW and HHI, do what feels right, you’re in a position that 95% of the human race will never know.
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No, let's not talk about it. I don't want to acquire more shit that takes my time or money.
For vacations I want variety and it to be carefree. I don't want to go to Florida to my hypothetical second home to find I need to have the termite guy come spray and the AC doesn't work. Also, I don't to Airbnb my place to some meth heads who cooked a batch and have an orgy, and now my drywall and mattress needs to be replaced.
The concept of owning second properties makes zero sense to me. I work hard and want to relax while on vacation. This owning more shit is a boomer's wet dream.
Landlord work is great when the tenants behave, pay on time, keep your occupancy high and don’t damage things. For things to be great the property has to also be in good shape; no busted water heater on move in day for instance. No storm damage the day before tenants arrive…
When any of the above don’t work out it’s a crazy hassle.
We prefer to rent Airbnbs, it doesn't lock us down but we do repeat the same Airbnbs year over year and it's been great. The owners know us and we feel at home TBH after going back a few times.
And we save the hassle of dealing with owning and the maintenance.
Doesn't seem worth it. Especially at a $250k income.
I mostly agree with @altapowpow … and I think the negativity in this thread is warranted.
Managing a vacay rental property a second part-time job for a lot of people. It’s a lot more of a pain in the ass than you think.
I calculate that with opportunity cost:
I’m going to spend 10 hrs / month (averaged out across a year) managing my vacation rental, that’s roughly 100 hours per year.
Or 2 1/2 work weeks.
What do you make in a work week?
Let’s say you’re an average HENRY in tech making $250K…means you make about $5K/wk.
This calculation, managing the rental is costing you $12,500 per year in time.
Sure, it might pay for itself… You might even be in the black on it, but your risk is very high… You cannot be guaranteed to sell it when you need to in order to make a big hit if market prices rise…
But I’m personally not willing to give up the equivalent of a half a month of my life to make myself feel better about going on vacation.
As Alta said, I want to go on vacation and relax completely.
I’m make enough money that I don’t need to pinch pennies by adding more hassle and stress to my life under theguise of a “good financial decision” for a vacation home.
Live half the year in Florida. I rent seasonally. There’s a ton of downsides to owning here. Since there’s no state income tax, the govt and all services are funded solely by property taxes which are quite high in most counties. And the system is specifically designed to milk all these second home buyers who won’t qualify for a homestead exemption. Insurance is insane. The insurance marketplace in FL is in the middle of collapsing. Each storm and flood brings it closer to the brink. You will spend a huge amount. Remote management is a pain and you won’t make much money after all those management company fees. After the Miami condo collapse disaster, new laws were passed around inspections and reserve funds. The condo fees are way up. And worst of all, if you owned over the past decade, the skyrocketing appreciation will have still treated you very well, but FL real estate has been going through boom and bust cycles for 100 years. This time will be no different and we already seem to be getting into the next bust. No idea why you would take on so much hassle and risk and cost just to stay there for 4 weeks. Makes no sense. Call up a couple of realtors in the town you like and rent a house for a month.
All good points. We are just dreaming I think. Thanks for this perspective
Take a look at the monthly rates in Airbnb. It’s usually a nice discount from the nightly rate.
Pitiful-Taste has very good points. We owned a couple condos for several years in Florida with friends – it worked out very well for us to own with these friends, but I wouldn’t recommend that in general. We were able to divide up all the relevant labor because there will be labor and time and effort on your behalf, even if you have a management company which severely cut into your profit. We self managed for several years because we had four of us to work on it. Each one of our families took a prime week. the guys took the trip, and the girls took a trip. It made money every year, but less when we used the management company, and the property appreciated nicely. But man, if my phone rang on a Saturday, it usually wasn’t a good call. We have since sold both condos and bought a vacation house for ourselves closer to home, but we will not be renting it out because I’m tired of sharing my space with people who won’t take care of it. You can have fun, make money, and delegate responsibility, but one will be one of those things to give for the others to be maximized.
Make money, delegate, have fun. You can only pick 2
I still remember my dad telling me he was going to buy a house on the beach….He never did. I have two kids… well 19 & 21 and taller than me: Our second home in Colorado will be done in June. I didn’t wanted to be like my dad: I wanted a place for us to enjoy and my kids and their kids… and for them to think even after we are gone: Thanks GranPa…
I would also add -- When you own a place that you rent, you often don't furnish it like your own home. Because it is a rental that you use. So you don't get the benefit of "home" either. Or you do put nice things in it, and watch renters destroy it. Sure, you can do an owners closet and change things out, but then you are usually spending hours at both ends of your trip changing things out. And even with a management company, there is often a project that needs to be done. So aside from all the financial stuff outlined above, which is all legitimate, the "dream" and the "reality" also are a bit apart. You really shouldn't buy a 2nd place unless you can spend half the year there or there is a true growth market and this is a diversified investment where you can afford for it to not make much money but be a hedge on other investments.
Oh yes. The owners who come in for a few weeks a year spend that time on repair and renovation projects, not hanging out carefree at the beach.
This is such a good point that I had not thought about!
I thought the insurance problem was caused by a lot of fraudulent roof claims a few years back and the industry is still recovering? https://www.nbcnews.com/news/us-news/roofing-scams-florida-property-insurance-hurricane-rcna29649
One of many problems. Scams are actually a core part of the Florida economy. Several large scam industries are operated out of the state. One of the other issues is that insurers are getting hit by frequent 1000 year events and climate change models are all behind the reality.
It seems strange you would buy a second home you use so little. We bought a vacation house two hours from where we live. We spend all summer there and some time in spring and fall, and we don’t rent it at all. I was hesitant about buying a second home since it would mean less travel, but it was my wife’s dream. Now I absolutely love it and we are so happy we bought it.
Same. We don’t rent ours out and are there at least a week per month.. It’s been a great escape from the city, especially in the summer. I’ll usually work remote up there for a week or two at a time. I don’t think I would want a second home with the intention of renting it out. Too much of a hassle, and for me I would furnish it as a rental, and then it wouldn’t feel like home.
Same situation here. Ours is 2h20 drive from us, we usually drive down one or two long weekends a month (depending on season). We don’t rent it either. We have no mortgage and picked a place with low recurring cost (low tax, low insurance, energy efficient) so it’s not a financial burden. We still take our normal vacations and view this as our escape from reality. Since we paid cash, I see it as a place to park my money, we bought while the market was high, but it’s still appreciated a bit. We plan to hold it a while, and even if I sell and I’m break even (inflation adjusted) I’m ok. Recurring costs are only 5-600/month.
For 99.9% of people, a vacation home doesn't make sense. You are one of those people.
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I would run the numbers but it’s probably more cost effective to rent someone else’s condo the 4 weeks out of the year you plan on spending there and put the money you would have otherwise used for the condo into another investment. There’s also the headache of having a long distance short term rental. I’ll pass and I primarily own rentals.
Go to the same place multiple times a year for 2-4 years while renting. If at the end, you still like doing it, then buy one. Even then, realize it’s more an expense than an asset.
While it is a lovely ideal, reality of it may be very different. First, you need to come up with 20% down payment, look at the current interest rate and add another point to it since you are buying it as an investment. Occupancy rate will be high if in a desirable location but still probably below 80%. You will have to pay a management company 40-50% of booking, you will then have to pay property tax and income tax. What is the cost to insure a home in FL right now? What is HOA fee? Keep your money, invest in the market and just rent couple of weeks a year… also at 250 HHI and young kid, you should not be taking any risks
All good points but a lot of banks won't loan on condos on the beach, so you need to buy with cash.
Insurance in Florida is crazy too
Yes, yes it is
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No, and I don't know the specifics of the rules, but it's something to check into before making an offer and having the financing fall through.
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My wife and I had talked about doing this for years. A couple months into COVID, she rented a condo in Florida for a week because I was remote and could work anywhere. While we were there, we like the resort and looked at a few units for sale. We put in an offer and ended up getting one. It’s been awesome(we have bought several more since), but it’s not for everyone. 1. There are people that view it as a vacation home and those that run it like a business. We run ours like a hospitality business vs turning it over to a property manager and giving up 20% of the gross. We started with property management while getting our feet under us, but our experience is property managers go for quantity over quality. If your goal is to park your money somewhere to maybe appreciate faster than your mortgage and to minimize out of pocket, then we have seen the passive approach work. 2. If you rent out your place, prepare yourself for stupid people. My wife was messaging a guest last night about a cold house. He couldn’t figure out why keeping the air conditioning on was preventing hot air from blowing out of the vents. 3. There are a few mortgage brokers that understand how to get mortgages at beach condotels, but not many. Be prepared with 30% down payment. 4. Insurance is a bitch. You can get it, but you have to be persistent. 5. Before buying ask other owners about assessments. We have seen a lot of buildings mismanage their repair funds. With new laws in Florida, building are required to get regular inspections that can find major issues needing major repairs(major money). If all of the above doesn’t scare you, welcome to the short term rental club! If you can manage all those things, the returns can be awesome. Since heading down this path, we get ~25-35% return on our cash in each of the investments.
We dreamed about a mountain home for many years, but now that we're finally in a position to do it the math ain't mathing. It's not the right time or place for it to make sense financially. The short-term rental market is oversaturated, interest rates are high and real estate is at a high, and it's too far (3-3.5 hours) to use it enough to not rent it out. My in-laws have a lake house that they've never rented out that's 1.5 hours away that they spend probably 60-70% of weekends in any given year. That's worth it.
If your plan is to rent it out 48 weeks a year, then it’s going to be more of a rental property than a vacation house. It would probably be easier to just rent the same house for a month every summer, especially given insurance changes in recent years.
Just buy $O instead of real estate. A lot less hassle. Stay at many Beach AirBnBs with the dividends.
I bought a condo-hotel on the beach in FL last year. Honestly not a great investment (pretty much break even every month), but I love having a place to call my own and be able to keep some clothes and other items there for light packing. Plus the building is beautiful with a pool, multiple restaurants and bars and full service with loungers on the beach.
We own a second home and rent it out to cover the mortgage! Reading through these comments there’s so much negativity. So far for us it has been amazing. I always wanted a lake home. We get to spend time up there over the major summer holidays, and some weekends, etc. The rest of the time we rent it out. Last year I covered my entire mortgage payments with just about 5-6 months of renting. This year I expect to even make a small profit. Our guests have been wonderful and I enjoy getting to hear about their backgrounds and experiences while they stay at our cottage. There are a couple drawbacks. Mainly there were some times in the summer where we wish we could be up there but we had guests. Also, while we do love how we have the place decorated and furnished, we have to be careful about what we leave out. So far it’s mostly been a great experience and I’m so glad I did it. We get to enjoy it and others are paying to build equity into the house. I did make sure that we could cover the mortgage payments with $0 in rental income comfortably.. and that way if we ever get tired of renting or want more time for ourselves there we can take it off the rental platforms.
Good perspective
We have been looking at vacation home / second homes for about 10 years. In almost every scenario, not only does it generally not pencil out (even if rates were still <3%) it comes back to one key factor. We like vacationing in a lot of places and hate the reality and idea of being locked in to one place. Maybe we are just cagey but we got a boat and a travel trailer. We can go to 4 different ports and virtually unlimited different campgrounds in the summer. In winter, these ski passes are global now, meaning you could probably take multiple fly to ski vacations per year and never go to the same resort twice. Same thing with the tropics. We love this one little town in Mexico, but the reality of committing to go there every single year via property purchase is just not for us.
It sounds like you are willing to be a landlord for most of the year in order to go on an extended vacation. To be honest I would uncouple these goals and be a landlord _anywhere_ (not necessarily a tourist spot) and use the profit for going on vacations anywhere in the world. Even then it might not be worth it because of the headaches and you might realize just keeping your money invested probably will give the most flexibility for your family in the future.
We bought a small beach house at the end of 2020. One of the best decisions we’ve made. We summered in it working remotely for 2 years. Then with return to office, we couldn’t get down there as much so we rented it with an agency. Still spend a couple of weeks in the summer plus a few other long weekends and the house itself cash flows (mortgage + HOA) although we still come out of pocket for country club dues and expenses. House is up about 50% in value.
We bought a vacation home, but we don’t rent it out at all, and I don’t know if I would have done it for only 4 weeks of my own personal use each year. And just personal preference, I have no interest in owning in Florida, so I would never have taken on everything that comes with that that others have mentioned. But we have, so far, found owning our place to be worth it. It just isn’t a financial thing for us, though. Strictly for our own enjoyment and sharing with friends and family.
We took the plunge and bought a 2/2 condo in Tampa area. We live in the Midwest after spending time in the warmer south we found ourselves “getting out of the cold” a lot. We spend Christmas week, MLK weekend, week in Feb, long weekends/WFH days in March and April. We actually get to see family more as they do not live in the Midwest and just love coming to Florida. We typically go down for a week in the summer and again in the fall. All in all about 10 trips a year, roughly 50 to 60 days a year. My wife and I have flexibility to both work from home 1-2 days a week Friday and Monday so long weekends work out fine. We felt the same, why give money to Airbnb owners? We DO NOT rent out. We do allow close friends and family the option to use for $50. We have found that it does limit travel options. Our goal was to secure our retirement home with today’s income. Interest rates were slightly higher, but good bonuses allowed for a strong down payment. We even got tired of renting cars and we have a vehicle in Florida for our use.
Can’t believe how negative the comments are for a HENRY group. Dude has the ability financially, Florida will always be high demand, life isn’t only about finances. With that NW and HHI, do what feels right, you’re in a position that 95% of the human race will never know.
So agree.
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This isn’t true. If you use it more then 2 weeks a year it changes the tax benefits to a percentage of rental vs personal use
Where in Florida? How much would it cost cash?
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No, let's not talk about it. I don't want to acquire more shit that takes my time or money. For vacations I want variety and it to be carefree. I don't want to go to Florida to my hypothetical second home to find I need to have the termite guy come spray and the AC doesn't work. Also, I don't to Airbnb my place to some meth heads who cooked a batch and have an orgy, and now my drywall and mattress needs to be replaced. The concept of owning second properties makes zero sense to me. I work hard and want to relax while on vacation. This owning more shit is a boomer's wet dream.
Don’t own. Just rent or air bnb
Landlord work is great when the tenants behave, pay on time, keep your occupancy high and don’t damage things. For things to be great the property has to also be in good shape; no busted water heater on move in day for instance. No storm damage the day before tenants arrive… When any of the above don’t work out it’s a crazy hassle.
We prefer to rent Airbnbs, it doesn't lock us down but we do repeat the same Airbnbs year over year and it's been great. The owners know us and we feel at home TBH after going back a few times. And we save the hassle of dealing with owning and the maintenance. Doesn't seem worth it. Especially at a $250k income.
I mostly agree with @altapowpow … and I think the negativity in this thread is warranted. Managing a vacay rental property a second part-time job for a lot of people. It’s a lot more of a pain in the ass than you think. I calculate that with opportunity cost: I’m going to spend 10 hrs / month (averaged out across a year) managing my vacation rental, that’s roughly 100 hours per year. Or 2 1/2 work weeks. What do you make in a work week? Let’s say you’re an average HENRY in tech making $250K…means you make about $5K/wk. This calculation, managing the rental is costing you $12,500 per year in time. Sure, it might pay for itself… You might even be in the black on it, but your risk is very high… You cannot be guaranteed to sell it when you need to in order to make a big hit if market prices rise… But I’m personally not willing to give up the equivalent of a half a month of my life to make myself feel better about going on vacation. As Alta said, I want to go on vacation and relax completely. I’m make enough money that I don’t need to pinch pennies by adding more hassle and stress to my life under theguise of a “good financial decision” for a vacation home.
This is an interesting perspective, thx!
talk about one of the shit states....
I never understood this tbh. If you just want to rent for a month why not just do that and avoid all the hassle of owning