I am as new as they get to the real estate field right now. Very limited cash, but very rich in creativity. I have found property newly built for $150-200K in a section of Oregon that is prime location for tourism (near glacier lake and admist great skiing resorts).
I am looking to purchase and rent out year round depending on the season (i.e. ski chalet for the winter and just an overall “getaway” the remainder of the year).
Any advice on ways to finance, get a mortgage, and advertise this baby? Thanks.
I am not a fan of reinventing the wheel. I would find out what the
ski chalet for the winter and just an overall “getaway” the remainder of the year
right next to your property is doing for advertising and do the same thing word for word except for the address and phone number.
Financing will depend on your situation. All real estate is local. That being said, the way to finance it will depend on how vacation rentals are financed were you are looking to buy. I would talk to a local mortgage broker that has financed vacation rentals in the same neighborhood and ask them for options. They will do this for free because they want you as a customer.
you need to careful look at your cash analysis. most vacation rentals are CASH NEGATIVE after figuring all of expenses. This comes from 4 things: high vacancy rate (easy can be vacant 50% of time), high turnover cost (weekly), high comissions if you use an agency (as much as 25%) to place renter and heavy discounting of price due soft seasons (as much as 50% from peak season).
<<This comes from 4 things: high vacancy rate (easy can be vacant 50% of time), high turnover cost (weekly), high comissions if you use an agency (as much as 25%) to place renter and heavy discounting of price due soft seasons (as much as 50% from peak season>>
…not to mention high maintenance and the long-term “beating” your property will take by folks that are there for a week and don’t give a rat’s patoot about your property/possessions.
Keith