Do you wish you could save money on vacation? Do you wish you could customize your lodging just how you’d like it to be? Here’s an idea: buy a vacation home and rent it out when you’re not there.
Renting out your home for other travelers is an easy and profitable way to keep property occupied while you’re away. The best part is, you could even pay off your mortgage so your vacations are free. Every property and location is different, so for demonstration purposes we’ll do a simplified model in Vail, Colorado.
Let’s say you live outside of Colorado and love skiing, but you don’t own property there. Instead of spending potentially thousands on accommodations, why not just purchase a place? For obvious reasons, buying property rather than staying somewhere is an enormous financial liability; however, vacation rental shifts this equation. Take a look at the numbers below.
Say you buy a 2 bedroom, 2 bath condo in Vail at 4% interest for $445,000. With a 30 year mortgage and 5% down payment, you’re paying about $2,475 a month for the mortgage and PMI. At $247 a night, you’d pay for the property if you just rent it out for 10 nights a month! This model doesn’t include everything—you can charge $500 per night when there’s a music festival and make even more money. And of course, you will still have to pay for things like utilities. But the general idea is clear. By smartly buying a property in a vacation community and renting it out, you vacation for free as often as you’d like, and you’re actually earning money on that vacation rental rather than losing it.
We’ll help you with the market research and crunching numbers. We also offer a turnkey solution to rent the properties (cleaning, advertising, and communicating with the customers), and we only get paid a percentage of what you make. It’s a whole new vacation world, and we’re here to get you started.