Tips to Investing in Vacation Properties
ENSURE YOUR INVESTMENT IS ALL SUNSHINE—FOR YOUR GUESTS AND FOR YOUR ROI
by Jonathan Spears
hen guiding a prospective buyer through the process of
Let’s take a closer look at these must-do items and how they pertain to properties specifically located in sought-after vacation spots.
ly, while it may not be at the fore- front of your mind when seeking an investment property, certain nuanc - es can disrupt rental income and drive down the return provided by the property. For example, natu - ral weather events. Understanding local demand for rental properties is also key. Many areas, especially beach properties, have low and high seasons. Understanding how these seasons affect inventory in the area and rent prices is key to squeezing as much value out of your invest - ment as possible. Whether you plan
purchasing an income-producing property, I tend to emphasize three general rules that apply no matter where the property you are seeking to purchase is located: 1 Always do your due diligence, 2 Put a premium on location, and 3 Focus your search on
DUE DILIGENCE Conducting due diligence is critical before taking the leap on any invest - ment property. Prospective buyers should request the property’s rental history to see how it has performed in the past. This is as good an indi- cator as any on how a property will perform in the future. Additional-
properties that have proven management companies and a good reputation within their respective community.
60 | think realty magazine :: january 2021
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