Considering Short-Term Rentals?

by admin | Jun 29, 2021 | Uncategorized

Short-term rentals can be a highly lucrative investment and a fun way to make money. Some of the advantages to managing a short-term rental property include:

1. Your tenants are generally excited to be at your vacation property and may not require as much attention as a long-term tenant.
2. You can collect one-time, up-front payments instead of keeping track of monthly or weekly payments.
3. Depending on the location and amenities of your property, you may make several thousand dollars per month per property.
4. Platforms such as Airbnb, VRBO, and Booking.com make it easy to set up a website to market your property.

A short-term rental investment can be accomplished by purchasing a property to keep rented out or putting your own home up for rent when you travel. Whichever course you take, here are some things to think about before you hang up that “vacancy” sign.

1. Managing short term rentals is not exactly passive income. There is quite a lot of work involved in marketing the property, keeping it maintained, and turning it around between tenants. Consider whether you have the time to keep up with it yourself or if you will need to hire a property manager, and how much that will cut into your profits.
2. Think beyond vacation rentals. Short term rentals don’t have to be on the beach or a ski slope. Other reasons why someone may need a rental in your neighborhood include job interviews, waiting to close on a home, renovating a home, visiting family, traveling with pets, college tours, entertainment events occurring in the area, or having medical procedure done at a nearby hospital.
3. Do your due diligence when buying an investment property. You’ll want to assess the existing short-term rental market and find out what the going rates are and which areas are renting well. You should find out if there are HOA or condominium regulations that prohibit short-term rentals. Also inquire as to state, county, or city regulations and resort taxes.
4. Create a business plan. Many property owners wing it with their short-term rentals, but you will have more peace of mind and less surprises if you treat your rental as a business. Make a list of expenses, including insurance, mortgage payments, taxes, cleaning and handyman services, utilities, internet and TV, lawn or pool care, furnishings, consumables you will provide, and marketing costs.
5. Work with an agent who knows the area. Buying the right property at the right price takes some experience. Remember that the purchase of the property is the bigger investment than the rentals to follow. Let’s talk about how I can help you get started making money with short-term rentals!

Real Estate Investing Pros & Cons

by admin | Jun 29, 2021 | Uncategorized

Have you ever heard that 90% of millionaires invest/own real estate? Believe it or not, it’s true! There’s a reason the wealthiest people invest their money into real estate – but, like any investment, it does come with it’s pros and cons.

Let’s get to it. Today I’m going to walk you through a few of the pros and cons to owning real estate.

Let’s start with the good parts:

1. Real estate is a great investment because it appreciates over time. While there are occasional market fluctuations, if you buy at the right time, the rate of appreciation generally far outpaces annual inflation.
2. Becoming a homeowner has unique tax benefits that allow you to grow your wealth over time.
3. Rental properties provide steady cash flow! Cash flow provides ongoing, monthly income that is mostly passive.
4. Real estate builds equity. While your tenant is paying the monthly mortgage payment, your increasing your net worth and paying down an asset that you can continue to rent or eventually sell and make a profit

Now for the cons of owning real estate:

1. Owning real estate requires money. You’ll need funds for a down payment, repairs, updates, as well as regular maintenance, expenses, insurance, and property taxes.
2. There’s a learning curve that comes with owning real estate. It’s important to know which properties are good investments, and how to manage them after purchasing.
3. Investing in real estate also comes with its own set of risks. Buying at the wrong time, increased liability, getting over-leveraged. You need to be able to make money at the end of your monthly payments, despite unforeseen issues or repairs that may arise.

A real estate investment is an amazing chance to provide steady cash flow, substantial appreciation, and tax advantages – making it a sound investment. Just make sure you’re ready to consider the important factors at play.

And as always, feel free to ask me any questions you may have! I’d love to help you find your next investment property.