If you're like most people, you've had dreams of owning a vacation getaway. Maybe a lake house? Something at the coast, or a condo near a ski resort? For most people it is out of reach because of the large upfront cost, and of course, ongoing payments with a traditional mortgage. Here are some strategies that can bring the dream closer to reality!
One approach is to buy a property and place it on a short-term rental site like VRBO or AirBNB when you're not using it. You need to ensure that there aren't any barriers to this via local law, HOA or Condo Associations. This brings in revenue to help offset costs like debt service, taxes, maintenance, etc. Of course, this has challenges if you're remote - cleaning after guests leave, damage, etc. I recommend using a property manager to assist with these tasks, but of course, that adds a cost.
Another approach, to use in conjunction with the first, is to partner up! If you have some friends who have a dream similar to yours, you can purchase a property together, splitting the upfront costs as well as ongoing ones. For this to be successful, you'll want to create an operating agreement up front, so everyone is on the same page about when each party will have access to the property, when it will be available for rent, who will manage the property, and what to do when unexpected costs come up. The time for this is *before* you ink a deal! You should also consider an exit strategy up front. Do all parties want to keep the property indefinitely and pass it to your estates? Do you want to have it while the kids are growing up and look at selling at a certain future date? Having the right Realtor, lender and property manager will be key to your success!
If this sounds appealing to you, too, reach out and let's talk!