My family just rented a condo next to a resort in New Hampshire for 1200.00 a week. This area has tourist attractions for families all year round. It seems like a no brainer but its 4hrs. from home and well its a risk too.
2007-08-26 14:24:33 · 5 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
It all depends on the price you pay for it. Any house can be profitable if you buy it at the right price. And any house can be a sink hole if you buy it for the wrong price. The easiest way to judge whether it will be profitable or not is the 1% factor. Look at the purchase price, and then multiply it by 1%. If the rent for that type/size property is higher in the area you are buying into - then you can expect to see positive income.
Ex. Since condos in the area rent for $1200 a week (i.e. $4800 a month) so the property you are buying needs to be less than $480,000. Of course, this assumes a 100% rental rate (i.e. no vacancy periods). Positive income means anything above the mortgage, taxes, insurance, and property manager fees.
2007-08-26 15:23:16 · answer #1 · answered by Christopher B 6 · 0⤊ 0⤋
I rent out a condo on a weekly basis near a ski resort ... the difference is that our area has a larger summer tourist season, so I can rent it year round.
You have to run the numbers. Even a well-advertised vacation rental may only rent for 50% of the season (and may sit vacant for the remainder of the year). Remember is has to be fully furnished with EVERYTHING (linens, utensils, etc). Most rentals offer a computer with internet access, phone, sattellite television. You'll need a reliable cleaning service, and someone to drop off and pick up the keys each week.
It may look like a great money maker, but there are alot of thigns to consider.
2007-08-26 23:17:21 · answer #2 · answered by C S 5 · 0⤊ 0⤋
It's not a "no brainer".
You need to run the numbers. You have not mentioned how much such a condo would cost, so you don't know your cost of capital. What are the taxes? What are the association fees? How much will your leasing agent charge? Are you going to clean it yourself or have a service? How much will that cost? How much are you going to budget for repairs? Are you going to drive up there and back 8 hours round trip to fix a dripping faucet or are you going to hire a plumber that you don't know over the phone or are you going to leave it up to your leasing agent? There are attractions year around but is there a demand for condos year around or only in the peak ski season? How many weeks a year are other places filled? Is $1200 the peak season rate? What is the off peak rate?
2007-08-26 21:38:38 · answer #3 · answered by Ted 7 · 0⤊ 0⤋
I would guess not , because people don't have time off from school and work year round .
But the R E manager would have your real answer .
Ask them what the rental occupancy rates are .
But , you could always block out the weeks you want for yourself !
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2007-08-26 21:41:50 · answer #4 · answered by kate 7 · 0⤊ 0⤋
Life is a risk dear heart! If the price is right and you can get that kind of money and good tenants- go for it!
And while they are freezing in the snow you can come buy a nice house from me here in Ocala Florida : )
2007-08-26 21:33:15 · answer #5 · answered by Free Thinker 6 · 0⤊ 0⤋