Currently own two rentals and a my residence, working toward another purchase in about a year. I live in an a city with great outdoor areas within a couple of hours (to narrow it down for you).

Question-- considering a luxury 'cabin' that I would VRBO (~2h from home) instead of a traditional rental for my next purchase. Anyone done the cabin/VRBO option? Happy with it as compared to basic apartment rental?

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Be prepared to be there very often if it is treated as short term rental. High maintenance and you need to be very actively involved which is different from LT rentals

helpful

Thanks--- this is 100% my fear on this

I have two beachfront vacation rentals that we can use ourselves. I manage them entirely (Airbnb/VRBO/Direct) and live 90 min away. You need a great cleaner/person who can handle turnovers and a great handyman (even better if you have two). Ring cameras, WiFi enabled thermostats and smart key codes are all helpful.
I’ve loved it especially compared to LTRs. The downside is when you go to use it on vacation you’re also thinking about he things you need to fix/do while you’re there. But it’s been a great investment.

helpful

That's awesome--- sound like I would need to invest in exploring or even setting up this infrastructure before making a purchase.

Why especially as compared to LTR?

Bc I was investing in something I was going to use myself. I don’t care as much about LTRs that I would never live in or use.

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Short term rentals are:
- more of a business than a passive investment like a rental. Make sure you understand the level of attention that will be required
- very saturated in most vacation markets. Take 20% to 40% off any financials that are presented to you, especially if they include 221 and 2022
- facing increasing amounts of legislation. Neighbors hate them, so more rules are getting added. Make sure you understand the sentiment in your market
- highly seasonal in most markets. You may only book 3 to 6 nights per month in the off season. You need to budget accordingly to be able to maximize your in-season and store your funds for the off season.

They can be very lucrative, when done right. But a lot of people that saw the boom of 21 and 22 are getting out because the math isn’t mathing for 23 and 24. Don’t be the one holding the bag.

smart

Thanks PM1, love the business/passive analogy and the comments on market.

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