Frequently Asked Questions
Can I really afford a second home?
In 2015- the average second home price in the US was $192,000. That’s doable, right?
Done right, that kind of property could cash flow within the first month of being on the market.
Do I really have time to own and manage a vacation rental?
Your first few months will be intense, you will be house shopping for your perfect property and furniture shopping to spice up your space. If that doesn't sound fun, hire me as your personal shopper and I can help you along the way. If you do decide to enter into the vacation rental game, it can be at your own pace. There is no rule book that has deadlines for this type of business.
But then once all your systems are in place, it should take you no more than 2-3 hours a week if you not doing the cleaning and maintenance. Most owners hire that out, unless they find it enjoyable. If you don't feel like you have the skill set or time to manage a vacation rental well, there are many reputable property management companies who can handle the details for you and send you a check every month.
I've heard horror stories on the news... Should I be worried?
These events are rare and therefore newsworthy. 98% of first time guests on AirBnb receive a 5-star rating from their host. Damages are few and far in between and you can require them to purchase accidental damage insurance just in case. Generally, the worst thing to happen is a broken wine glass or a knocked over lamp. Most guests treat your home with respect, and if they don't you can pursue reimbursement through their credit card company or the listing sites.
What happens if the economy tanks?
Because you are purchasing residential real estate, you have a lot of options. In 2008, many owners found that by lowering their price a little bit, they were able to keep their occupancy high. Because the margins were so good to start with, they still made a profit, By following the guidelines in this course, you can be at the top 10% of the market. When other people aren't getting bookings, you will have the skills, knowledge, and tools to get people to whip out their credit cards. And if things get worse than in 2008, you can always turn it back into a long-term rental or use it as your primary residence.
