You may have been hearing that
your friends are purchasing investments and using Airbnb or Vrbo or other
systems to rent those properties and they're
actually making more of a profit than if they just rented the property outright.
This week I want to talk to
you about the first steps of that when considering purchasing a vacation rental.
First you will want to
purchase a rental in a place that you enjoy and that you think other people
would also enjoy because after all, you have to have people coming in to rent
the property for it to turn a profit.
So, after you've identified
where you want to purchase the rental you have to take a very basic look at
what is the property going to cost you to maintain on a monthly basis and how
much can you rent it for.
First considerations are
taking a look at your mortgage amount and then what you'll do is you'll do some
basic research. Find out what other vacation rentals are going for in that area
and then divide the nightly rent into your mortgage payment so that you can
know how many nights per month do you need to rent the property in order to
break even and then start to make a profit.
Don’t forget it's not just
your mortgage payment to consider in your expenses. It's also the utilities required for you to
hold that property. So, it may include internet if you're going to provide free
internet at your property, certainly includes electric, possibly gas and you
may also have a water sewer bill, and also include insurance and condo fees if
So what are all of the costs required
for you to hold that property on a monthly basis. Figure out your nightly
rental fee and then you'll be able to determine how many nights per month you
need to rent the property.
I hope you found this information
helpful. If you need more information,
please reach out to me, I’d
love to help you walk through the questions and steps!