Quote:
Originally Posted by Mutt
For those who invest in residential/vacation properties do rents cover your mortgage payments and maintenance costs?
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The majority of what I do now is cater to the vacation cabin rental market and I cater to 2 hot zones.
In both, the majority of home owners do not make real money. In both the majority do not even cover all their expenses - UNLESS THEY DO ADDITIONAL MARKETING ON THEIR OWN.
I have also found the sweet spots are 1 and 2 bedroom units, and then 6 bedrooms and above. I had a 1 bedroom bring on almost 60K in one year (unit cost $115 to build). I had 4 bedroom units on the same street in better condition that brought in about 1/3rd that for the owner.
If you have a heavily used rental you will not get 10 years out of a sofa, dishwasher, carpeting, hot tub etc. Once you are not "fresh" the ratings go down along with the rentals so you need to really keep up.