Vacation rental properties

[Kevin B.]

Who owns one?

Kinda thinking I might need a cabin/vacation property somewhere in my life. Wouldn't be able to afford it without putting it up for rental while I'm not using it, anybody do that? Share your experience? I'd like to know what area you're in, whether you use a rental agency and what you think of them (or if you list it yourself, and what you think of that), what your rental frequency is and what percentage of the loan payment you cover through rental fees, how much extra you spend on maintenance, etc.

And what questions am I not asking?

 

[Unimog]

I only have the con side from my point of view of not owning one. I see how much effort my friends put into their cabin or vacation property. It is way more on average than caring for another house and yard. Maybe that is because of the condition they are in, but the guys I know that have one spend more time fixing it up and maintaining it than enjoying it.

 

[moab_cj5]

We have a cabin and some property in a family trust. We don't rent it out, but like @Unimog said, it takes a TON of upkeep and maintenance. We have enjoyed it more than worked on it the last few years, but that has caught up to us and now we HAVE to put in a ton of time on neglected work.

It is still worth it to me, but it is certainly work.

 

[Kevin B.]

the guys I know that have one spend more time fixing it up and maintaining it than enjoying it.

it takes a TON of upkeep and maintenance.

Why is that? Is it because they're in harsher climates, or because they aren't built as well as a house in the city, or?

 

[jeeper]

It is still worth it to me, but it is certainly work.

Would this change if you were also carrying a personal mortgage on it??

 

[jeeper]

Why is that? Is it because they're in harsher climates, or because they aren't built as well as a house in the city, or?

I think it's because you do little things at home all the time, so they are spread out and don't seem big. When you see the home a few times a year, there is a list of things to do.

I have a friend who built his cabin. They bought a lot before he had kids. The kids are married now. He just finished it a few years ago. They would 'go to the cabin' all the time. The kids played, and he worked. He spent their whole childhood building it. Seems like a waste to me.

 

[moab_cj5]

Why is that? Is it because they're in harsher climates, or because they aren't built as well as a house in the city, or?

Our's is mountain property that doesn't get visited/used weekly or even monthly year round. It never gets used in the winter as access would require snow removal that we don't do. The land is overgrown (2 decades of not clearing the WHOLE 2 acres) and there are animals and rodents that get into the cabin and make a mess. The Cabin in the family trust is about 90 years old and now likely needs to be razed and rebuilt due to damage from rodents and a leaky roof. Being in a trust complicates maintenance because there isn't enough money in the trust to do repairs, and Nobody is willing to spend their own money for something that isn't "Theirs."

Would this change if you were also carrying a personal mortgage on it??

To me, yes. We are actually in the process of buying out the trust so we can put our own money into the property to guarantee enjoyment. I may actually have to get a mortgage to buy in and own a piece of it personally, but the location and sentimental value definitely make it worth it to me.

I think it's because you do little things at home all the time, so they are spread out and don't seem big. When you see the home a few times a year, there is a list of things to do.

This.

 

[Paul R]

My family has a rental cabin in Island Park (https://islandparkidaho.com/Blue-Creek-Lodge.html). One thing to watch carefully is seasonality of the location. It rents pretty consistently in the summer and it is always a struggle to use it because we aren't very good planners and used to use it whenever, but since it is renting it out we have to plan more.

We rent it mainly to cover all the utilities and taxes and enough to get some depreciation on the property and run as a business. We use a rental agency that handles everything but takes something like 20%. They take care of the rentals and cleaning and some upkeep but it is expensive and not as strong on the keeping renters accountable as we would like but works ok. It is still a pain to deal with other people using your place and not taking care of it properly and definitely has higher wear and tear. However, in all it works for us since we look at it as a way to offset some expense of owning it, but it is far from a money maker. It doesn't cover the whole mortgage. Like Dave, it is more about the sentimental aspect since my great-grandparents built a place there and has been in the family for a long time. A number of years ago we sat down as a family and decided that rather than investing for an inheritance, my siblings are all relatively well set and that we would prefer to have more memories together and wanted our own place large enough to have all of our families up there at the same time.

 

[Kevin B.]

My family has a rental cabin in Island Park

That's exactly where we were last weekend, that got the wheels spinning. I'd love to have property up there or somewhere similar.

Your place is gorgeous, for sure. Does it not rent as well in the winter? I would have thought with all the snowmobilers up there that it wouldn't really have an off- season.

 

[Paul R]

That's exactly where we were last weekend, that got the wheels spinning. I'd love to have property up there or somewhere similar.

Your place is gorgeous, for sure. Does it not rent as well in the winter? I would have thought with all the snowmobilers up there that it wouldn't really have an off- season.

It isn't as strong in the winter season everyone always wants the holiday weekends and here and there other than that. Island Park is nuts right now property has skyrocketed in the last year or so.

 

[Stephen]

We have a cabin and some property in a family trust.

Why was it put in a trust? Inheritance? Are there upsides to a trust vs. something like an LLC with multiple partners?

 

[anderson750]

I own a condo in St. George with my sisters. The downside for us is that we cannot do air bnb since it is within St. George city limits. Overall it has still worked out well and been rented 9 to 12 montha of the year. Wirh the open time mainly being November & December. We contract with a management company that takes care of everything to do with the renters. They charge a good monthly rent and keep 15%

 

[moab_cj5]

Why was it put in a trust? Inheritance? Are there upsides to a trust vs. something like an LLC with multiple partners?

Thats how my Great great grandfather set it up.

 

[DAA]

We don't have any rental. But we do have an unlived in house on some property near Caliente, Nevada. All I ever do when I'm there is work on it. I think it's like a vehicle that never gets driven. Stuff goes bad from lack of use.

- DAA

 

[jeeper]

From what has been said, it looks like owning a second property is hard based on upkeep and repair if it is left empty. If it is rented out for income, you lose your ability to enjoy it as you would like.
Seems like just renting one for the weekend you want will put you well ahead overall.

 

[Kevin B.]

From what has been said, it looks like owning a second property is hard based on upkeep and repair if it is left empty. If it is rented out for income, you lose your ability to enjoy it as you would like.

Yah. I still want a property that I can improve and enjoy though. Maybe just something to put a travel trailer on?

 

[moab_cj5]

Yah. I still want a property that I can improve and enjoy though. Maybe just something to put a travel trailer on?

Land that just requires minimal upkeep is ideal imo. A cabin is nice if it gets used often, but a trailer and a shed would be great too.

 

[jeeper]

Yah. I still want a property that I can improve and enjoy though. Maybe just something to put a travel trailer on?

Bald mountain and other areas in the burn scar near fairview are about $7k/acre lot.

 

[Spork]

I always thought something fireproof would be ideal, cement/metal building, lots of concrete pad around it with hookups for a RV. I haven't got past the dreaming stage though...

 

[glockman]

Thoreau said something like property ends up owning you. I've been trying to live by that, mostly cause I don't have any money, but I like to think it's a philosophical stand.