Tony Robbins once said, “The difference between success and failure is not which stock you buy or real estate. It’s asset allocation”. For real estate investors hoping to add to their asset portfolio, now might be the right time to choose vacation rental property.
As with any other real estate asset, when to invest is just as important as what to invest in. Here we will answer the top reasons why you should buy a vacation rental property.
Why now might be a good time to buy a vacation rental property in North Myrtle Beach, SC
Have you been vacationing to North Myrtle Beach, SC for many years and always dreamed of buying a rental property? Well, now might be the right time to jump in and make that dream a reality.
When you buy a vacation rental property you are not only investing in personal and financial rewards, but you are also diversifying and building wealth. Some investors take a deeper dive into the best cap rate, while others have a lighter approach and want to earn income but enjoy some vacation time there too. Either way you will want to be clear on your goals and find the right property that will yield the highest return.
1. Diversify
Diversification is the practice of spreading your investments around so that you reduce risk.
When you decide to invest in vacation rental property you will want to work with an investor-friendly agent who has expertise in vacation rental management and sales. Optimization is key – buying the right property that cashflows and has a great cap rate vs. buying emotionally is an important decision. Make sure you have the right person to guide you through the process with your goals and best interest in mind.
2. Greater Yields For Wealth
Unlike long term rental income where you have a steady predictable income each month, short term rental income has its ebbs and flows. However, the rental income yields can be much higher if you are in the right location.
Real estate values that are in a high tourist area such as North Myrtle Beach, SC tend to go up. So even if you have some vacancy in the off season, you can still build wealth through equity.
You may be able to get some tax breaks on mortgage interest if you don’t primarily use it as a rental property.
3. Preserve The Condition
Most homeowners that own vacation rental property live out of state. Having peace of mind that your asset is protected is huge, and therefore you should always have a property management company manage all aspects of your vacation rental. Unlike owning a long-term property where you are unable to enter when you like to see the condition of the home, owning a vacation rental is different. Always having access eliminates the fear of the unknown, and when you live far away you will not want that worry. Hiring a property management company means your home will be inspected, clean, and presentable for the next guest arriving. Preserving the condition of your investment will help build repeat guests, great reviews, which should result in a constant stream of revenue.
4. Take A Break
No doubt when you buy your vacation rental you will want to enjoy some time in it with family and friends. However, it is vital to remember that the goal is to maximize your rental income and have as much occupancy as possible. So, limiting your owner usage should be part of your plan. Perhaps only use it for two weeks of the year and allow your property manager to market and sell occupancy for the reminder, or just use it in the off season.
Bottom Line
Investors that have clear goals and expectations and who are willing to let their vacation rental property be managed by professionals will reap the rewards.
Be sure that you are clear about your reasons for buying and where, and tax implications.
Always work with an investor-friendly agent who has expertise in rentals and sales.
Ready to start your vacation rental Investment journey?
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