How to Find the Right Vacation Property
Let’s start by eliminating the “don’t wanters,” those aspects of a vacation property that you don’t want, under any circumstances. First, you do not want to purchase a home where there are laws or restrictions prohibiting short-term or transient rentals. Check the local laws and neighborhood or complex rules. Condominium complexes are notorious for having exclusive in-house rental management companies which would prohibit you from renting by owner—if your objective is to cash flow on your property, I would stay away from these types of properties. Some municipalities have very strict guidelines as to when you can and cannot rent, some do not allow rentals at all. Properties on government owned land, such as Army Corp of Engineers, or state and nationally protected lands often carry very strict rules also. This is where a licensed local real estate agent would most likely be a valuable source for information.
Fixer-Upper
As for the structure itself, I would not recommend you purchase a property that requires a lot of maintenance. Even if you are the handyman type, this new venture will be quite different than fixing things up around your own residence once in a while. It’s not just a quick trip to the local home improvement mega store to pick up a new storm door or a washer for that pesky leaky kitchen faucet. No, if you buy a high maintenance house, costly repairs will require frequent attention. And here’s the key—you’ll be doing it at a distance. Chances are, your vacation property is not going to be right up the street from where you live. (Otherwise, going there wouldn’t be much of a vacation!) So every time the vacation home needs maintenance, you will have to get in the car and make a long drive, arriving worn and tired before you even begin the work. The alternative—hiring workers to do the job—can be quite expensive. And, you won’t be there to supervise the work they do and to make sure they don’t run up the bill. Not a good idea. There’s a good deal of truth in the old adage: “If you want something done right, do it yourself.” But it can be rather difficult when you live 300 miles away.
