Vacation Rental Puns

Thanks in advance!

I am 32 and (hopefully) on a path to fatFIRE. Work in tech, income has been steady at ~$600-700K for a few years now. My net worth is around $3M, pretty much all of it in the stock market.

The only "problem" is that I have zero debt, and don't own any real estate. With interest rates set to hike and all the <2.5% 30-year mortgages on the edge of disappearing, I think it makes sense for me to utilize this credit line. However I don't plan to stick around in the Bay Area for too long, and so buying a house here as a primary residence doesn't make sense. I am happy renting for the foreseeable future. My options:

1. Decide on where to live long term and buy a house there.
2. Buy a property (in the Bay Area or elsewhere) and rent it out, maybe with the option of moving into it down the line.
3. Buy a property in a "hot" vacation city and rent it out for short stints (think AirBnb or the like) and also occasionally use.
4. Do nothing, keep investing in stocks.

Has anyone been in my situation and picked one of these options? I'm particularly intrigued by #3, since it seems to offer a lot of flexibility with low effort (assuming I can find a good management company to take care of things). What are your recommendations for my situation?

In Asia, it's common to find staffed vacation rentals. Nothing over the top fancy, but a cook and maid would be provided with the rental. This provided the 'home' feel and space of an Airbnb with at least some of the staff benefits of a hotel.

Does this exist in Mexico or Central America? Where do you find them?

Hi there, the title long windedly says most of it. I have booked an Airbnb and was asked to sign a contract that they have all their vacation renters sign. In reading the contract it states that I am required to purchase additional vacation renters insurance from them in case of any damage, etc. I reached out to the management company to confirm that I wouldn't need this since this is something covered by AirBnb in case a guest causes damages. They confirmed via email that I would not need to purchase it. Do I need to request that they take this out of the contract, or am I okay to sign it as it is?

Hi,

I have a property I'm ready to sell the current mortgage is under second / Vacation home. But I stay at this property 1 month out of the year and I do a month to month lease for tenants. My mortgage on this property is classified as second home / vacation home.

Any issues if I sell this property and 1031 it ?

thx

New to real estate. Still learning.

Here’s my question :

Imagine someone is accredited and has a million to invest

Would you go syndication or short term rentals?

Just curious which investment route has more advantages ?

Seems syndications might be more scalable?

But rentals would allow more leverage because you could get bank loans?

Rentals may be easier to depreciate and 1031 ?

Does anybody set up an LLC for their vacation rentals? If yes or no, why?

Here is my idea and what I’m thinking:

1. Set up LLC.
2. Buy a lake house/cabin through the LLC.
3. Try to rent out the place minimally, maybe 5 or so stays per year.
4. Enjoy the heck out of my lake place as much as I can.
5. My LLC shows a loss every year due to only a handful of stays while paying the full mortgage, insurance, upkeep, etc.
6. My taxable income is reduced due to my terribly performing LLC.

Is this a win-win situation in the way that I got myself a lake place while also reducing my taxable income every year? What is everyone’s thoughts?

Just noticed that and wanted to share !

My mother is AWFUL with money. In 2006 she inherited about $4,000,000 from her mother and squandered nearly all of it within seven years. When she was down to about $1.5m left, she decided to build a log cabin on some property that she inherited and move from our hometown to the new cabin. The cabin was only supposed to cost $500,000 to build, but she was so naive and so easily manipulated that the contractor she hired to build the house ended up scamming her for an additional $500,000. And she had to spend another $150,000 to fix all the mistakes and code violations that the contractor left her with.

To put just how bad she is with money in to context… she never even googled the contractors name before she hired him. The first link on Google was a website made by eleven people who he had scammed or ripped off previously….

Anyway… fast forward to present time… she has lived in the cabin for ten years now and lives on the basement level in an apartment that’s separate from the upper two levels. The upper two levels are rented as a vacation rental and generate on average $75,000 in gross revenue annually. Also, several years ago she took out a $150,000 mortgage against the property because she was running out of money. Other than that, the Property is fully paid off. The estimated value of the property in the current market is $1,400,000.

She earns about $1200 biweekly from her full time job as a vet office front desk manager - a job she loved a great deal up until a few weeks ago. In addition to that, she makes $1100 monthly from state teacher retirement, and about $1500 a month of VR profit. The profit from the VR is split with me 60% her 40% me, after expenses like restock and housekeeping are deducted, as I manage 100% of the rental business for her. Her mortgage payment is $1100/month. She just refinanced this year and still owes for 15 more years. Anyway, Right now she basically lives paycheck to paycheck and has no emergency fund, savings, investments, or any assets aside from her home.

Two weeks ago, completely out of the blue, my mom informed me she had decided she was going to sell the cabin and move back to our hometown. She wants to put it on the market before the end of November…. Without giving it any time at all to consider…. Reasons for this include: wanting to pay off the $150,000 mortgage and all other debts, job burnout, missing her close friends from hometown, loneliness, depression mostly related to her dismal financial situation

We've considered buying something to use for two weeks a year and rent the rest of the time. We're not new to owning rentals, but new to vacation home rentals. Care to share your experiences? Is the juice worth the squeeze?

I am currently setting up a vacation rental that I plan on catering mainly to mountain bikers. In the garage I am putting in a bike work area along with bike storage. What tools/supplies do you think are must haves for an area like this? I’m trying to provide things people wouldn’t necessarily have with them but would still be useful and used frequently. I’ve already purchased this toolset along with various pliers, a shock pump, floor pump and repair stand. I’m trying to be budget conscious but want to provide a great space so I can spend money if it’s something that is really necessary.

When finding a rental what is the better value? Is it best to go through one of the rental companies based on the island or does VRBO and air BnB better?

If a canadian buys a home in the USA and his income only comes from investments. Meaning he doesnt work for anyone or run any American business does that breach his vacation visa? (Assuming he goes to Canada every few months to visit family & celebrate holidays)

Hey Everybody. On this snowy day, I'm thinking about our equally lovely summers :-) I am wondering how people find long-term (2-3 month) summer rentals on the lake, bay, river, or canal?

VRBO and AirBnB dominate my google searches, which seem to cater to week-long stays or are already booked for the summer (which might be my answer). I have found a few websites for individual properties / small property management companies, but most of these are outside Monroe County, which won't work for me*. Are there realtors who specialize in this? Any other thoughts or leads? I know I'm asking for a way to rent premium real estate for the best months of the year, so maybe I'm dreaming of something that's not really an option.

Anyhow, ideally I am looking for 3+ bedrooms walking distance to a body of water were we can swim or boat. Basically, a sojourn in the suburbs after feeling a little cramped in our city apartment for the last few years.

*I'm a foster parent, and in order to have the home certified so that I can keep my kids with me, it has to be inside the county.

I booked a vacation property on 12/18/21 and the company emailed me on 12/28/21 that there is a price mistake. If that is the case, the contract states they need to contact us within 48 business hours. Do they have to honor the price mistake legally? I am sorry if this type of post is not allowed.

Here is the email. I redacted some parts.

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We are reaching out to you regarding your stay at ______. It appears the system did not pull the correct rates for your stay. Per the rental agreement that you signed on 12/19/2021 it does state all of our pricing is believed to be accurate however not guaranteed (page 3 of 8, Listings & Pricing). Management reserves the right to make corrections to the improper booking, listing, or reservation quote. I am attaching your rental agreement for your review.

Due to this, the price of your reservation is incorrect. The correct price is $8,251.98 however you paid $5837.27. Due to this we have a couple options for you in regard to your reservation –

• If you would like to keep your reservation please pay a difference of $2414.71.
• If you would like for us to find another home within your price range, please send us your requirements for the beach house & we would be happy to find you another home.
• If neither of the above options work for you, we would be happy to issue you a full refund

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The contract states:

Listings: All information regarding property listings is believed accurate but cannot be guaranteed. Availability, rates, furnishings, accommodations, fees, and taxes are live and therefore subject to change without notice. Rarely, systems or sites will quote a reservation improperly. This being the case, Management reserves the right to make corrections to the improper booking, listing, or reservation quote. Management will contact the Guest within 48 business hours of reservation booking to make the necessary corrections or cancel Guest's reservation.

Here is the timeline:

1. Reservation Booking Date: 12/18/21
2. Contract Signed on: 12/19/21
3. Price Mistake Email sent on: 12/28/21

It used to be possible to rent holiday flats by the week for 300 or by the month for 1200. That seems to be completely gone.

I was referred for the Venture X and successfully got approved for it. Do I still get the $200 vacation rental credit? I couldn't find it anywhere on my "Your Travel Benefits" page.