Anyone have vacation rental experience/advice?

[2manyrocks]

The financial problem with buying a vacation home is that you are essentially doubling your housing costs in terms of maintenance, insurance (if you can get it not living there all the time), property taxes, and to some extent utilities, but you can only live in one house at a time. If you or your wife start having health issues and have to limit your travel, then the vacation home becomes an additional burden to deal with. Who keeps the grass cut and who keeps an eye on both houses? Logistically, who do you call when there's a problem or you need to know if there's a problem?

If you will have a lot of discretionary income in retirement, maybe it makes more sense, but then why not use that discretionary income to visit different places?

 

[MossRoad]

The financial problem with buying a vacation home is that you are essentially doubling your housing costs in terms of maintenance, insurance (if you can get it not living there all the time), property taxes, and to some extent utilities, but you can only live in one house at a time. If you or your wife start having health issues and have to limit your travel, then the vacation home becomes an additional burden to deal with. Who keeps the grass cut and who keeps an eye on both houses? Logistically, who do you call when there's a problem or you need to know if there's a problem?

If you will have a lot of discretionary income in retirement, maybe it makes more sense, but then why not use that discretionary income to visit different places?

It's one of the reasons we rent a house for a week for vacation once in a while. Some folks say "OOooo, $2500 for a week is outrageous!" Well, $400-500K + is outrageous to me.

You can rent a $2500 house 100 times for $250,000, with none of the hassles of ownership. And you can change locations anytime you feel like it.

 

[jaydee325]

And you can change locations anytime you feel like it.

And that is one of the reasons we have a motorhome. Sleep in our own bed every night. No campground available when wanting to get off the road, no problem, lots of overnight options from rest areas to Walmart parking lots etc.

Expensive but worth it to us.

Also, we show dogs, so not having to stay in hayseed hotels that allow dogs is another huge benefit.

 

[MossRoad]

...

Also, we show dogs, so not having to stay in hayseed hotels that allow dogs is another huge benefit.

Speaking of that, I have to drive to southern Indiana tomorrow night, get 4 hours of sleep in a hotel, then get the handoff of my kids' dogs and cats and bring them back up here for the week. They have a wedding to attend this weekend and I didn't want them making my grand babies sleep in a flea bag hotel for 2 nights.

 

[dodge man]

We have never owned one but have rented several over the years. The ones we rent often cost enough it keeps some of the party people away I think. All it takes is one bad renter though. We have talked about a second home but there is just no place we want to go year after year. We would rather bounce around.

Two places we went that we really liked. We rented a place right on the water near Steuben Maine, sort of near Bar Harbor. Not that nice, more of a cabin but cozy and a beautiful area. We rented a house near Santa Fe, also nice.

We rented a house an entire month in Moab Utah. The entire month was a little over $3000, which was a deal. Nice newer house, 3 bedroom and so much to do in the area. We had family members visit us off an on for that stay.

 

[gsganzer]

The financial problem with buying a vacation home is that you are essentially doubling your housing costs in terms of maintenance, insurance (if you can get it not living there all the time), property taxes, and to some extent utilities, but you can only live in one house at a time. If you or your wife start having health issues and have to limit your travel, then the vacation home becomes an additional burden to deal with. Who keeps the grass cut and who keeps an eye on both houses? Logistically, who do you call when there's a problem or you need to know if there's a problem?

If you will have a lot of discretionary income in retirement, maybe it makes more sense, but then why not use that discretionary income to visit different places?

Great points! That's why I'm feeling around a bit. We do travel overseas a fair amount and would like to travel even more, including bucket places here in the US.

Another thing we're toying with is to buy a 5th wheel RV and spend 2-3 years doing some travel circuits through the US to see/stay some different places, then settle down, either back at our current home or maybe with a new place to live in mind.

We both feel like we'd have a hard time ever leaving TX to live somewhere else, but you never know.

 

[Snobdds]

The financial problem with buying a vacation home is that you are essentially doubling your housing costs in terms of maintenance, insurance (if you can get it not living there all the time), property taxes, and to some extent utilities, but you can only live in one house at a time. If you or your wife start having health issues and have to limit your travel, then the vacation home becomes an additional burden to deal with. Who keeps the grass cut and who keeps an eye on both houses? Logistically, who do you call when there's a problem or you need to know if there's a problem?

If you will have a lot of discretionary income in retirement, maybe it makes more sense, but then why not use that discretionary income to visit different places?

You pay to play. That's it.

I have a house in Steamboat for my winter vice, skiing/snowboarding. I have a cabin in the mountains for my summer time vice, working with my old man.

If you have good accountants you can have them as tax write-offs. The old lady lets a few of her clients stay in steamboat each year to satisfy the IRS.

Talk with an accountant first. If you structure it right, it's a great tax shield.