For many, investing in a vacation home in a holiday destination like Florida is the stuff of dreams. More importantly, it could even pay for itself once you set it up for rental. So what does every would-be property investor in Florida need to know?
Assess your financial capability.
A good rule of thumb in life is to buy only what you can afford and know that amount can be as simple as using an online mortgage calculator. Before doing that, you need to take stock of your regular and long-term expenditures to know if you’ll be able to juggle all of those in addition to purchasing a vacation property.
While you can rent the property out, don’t just rely on that income to cover the loan, insurance, utilities, and maintenance expenses.
Research the area before committing to it.
Buying a vacation home is an exciting prospect, but there’s a certain degree of permanence to it, so you’ll need to consider factors such as the fact that you may not always be able to sell the property easily.
So be certain you can commit to the location for a reasonable time period. Don’t just look at the view; know if you’re comfortable maintaining a house in areas that may be really busy at certain times of the year or one that’s a bit of a drive away from stores and restaurants. Consider too, for example, that while being under the radar may seem ideal to you, not too many vacationers might want to rent a house that’s too much out of the way.
Space Coast Realtor – Real Estate Expert
Partner up with an experienced local real estate agent.
Since you’re investing in a vacation property in your preferred Florida locale, work with a real estate agent who’s well-versed in the various neighborhoods, so he or she can fill you in on what happens year-round, especially during the times when you’re not there.
After all, that vibrant summer boardwalk area may not be as appealing during other parts of the year, making it unappealing to renters.
Manage your expectations.
Yes, you can earn from a vacation rental, but remember that you might not make as much money out of this than you might from other investments. Think of the money-making as a bonus, but buy a vacation home that you would definitely use if the rental doesn’t pan out.
Additionally, you might need to give up some of your preferred vacation time if you’re dead set on maximizing your rental earnings. Florida is a popular winter vacation spot and while you might want to enjoy your home then, imagine the potential rental fees you can ask for during peak seasons.