Does anyone own a vacation rental?

[mmmmm...beer 692]

So.... prices in Puerto Rico are way down right now. We're going on vacation there in November because tourism is down.

 

That being said... we're looking to maybe buy a vacation home down there.... you can find some pretty nice little places pretty close to the beach. We're looking at a little 3bd/2ba, 1700 sqft, a block from the beach... a little bit over $100k.... It's not to far from Grandma's house down there. I figure if I took a 401k loan out for say $30k... That could be a decent down payment. So a loan would be on say $60-70k depending on what we got it for.... so that would be what... $400-500 a month... I'd just divert some of my 401k monthly investment into that instead of the 401k to pay that off.

 

Then we rent it out to Air BnB or Rental.com for most of the time. BUT... whenever we wanted we could go down for a few weeks... anything we made on the Air BnB we could just put back into the loan.

 

As we're maybe looking to move down there in about 8 years... we'd have a little income property for retirement as well as a place for friends and family to come visit.

 

What do you guys think?

 

 

[Brad GLuckman 518]

Its the geek club. We all have vacation rentals

[DankNuggs 305]

Betting on Puerto Rican tourism for a few years may be aggressive. Id encourage you to look at insurance closely both property and liability. Typical homeowner policies dont cover air bnb and Ive heard some horror stories

[mmmmm...beer 692]

Betting on Puerto Rican tourism for a few years may be aggressive. Id encourage you to look at insurance closely both property and liability. Typical homeowner policies dont cover air bnb and Ive heard some horror stories

 

Yeah that's sort of why I wouldn't do it if I couldn't swing it on what's already coming out of my check for my 401k. Great point on the insurances.... I didn't think of that right off the bat. I'll have to do some digging on that for sure prior to anything.

[titans&bucs&bearsohmy! 2,745]

Im thinking of doing something similar in the Philippines. Buy a place soon. Rent it on air bnb until were ready to move. She has lots of family that could help us keep an eye on it and such.

[tanatastic 2,061]

Yes, Drobeski does.

[shotsup 832]

Me no. But jealous. One of my closest friends does. His parents did and he followed suit. Has multiple places in Ocean City Maryland and some popular golf town I'm one of the Carolina s

 

Can't believe I'm too stupid to remember