(Vacation rental properties are somewhat unique to other rental income. But investors need to consider all of the same information that they would for any other Arizona Rental Property Loans.)
Owning a vacation rental property sound so much more fun and exciting than just owning a rental property across town or even in your neighborhood. But investors need to be careful not to get caught up in the excitement of owning a vacation property until all of the work is completed. There are still many factors that can make even the coolest looking beachfront property a bad investment and can turn your search for Arizona Rental Property Loans into a nightmare.
Location is a driver for all real estate purchases, and this is even more important for a vacation rental property. There needs to be something that draws vacationers to the area for you to get a good return on your investment. And in most cases, you want the property to be in good condition as you will not be able to travel to the property to make renovations and repairs. And a turnkey property can begin earning you income immediately.
You will also want to gather some information to know how much you can afford to spend each month for your Arizona Rental Property Loans mortgage. Vacation rentals often must pay property tax, rental income tax and occupancy tax which all need to be added into the monthly expenses. In addition, don’t forget to include insurance, HOA fees, utilities and management, and maintenance fees. All of these plus the cost of your Arizona Rental Property Loans mortgage should be covered by the rental income you are receiving.
Plan Ahead
While researching different locations for your rental property, you will also want to explore the maintenance and management services in the area that you could use. Renters are not going to want to call a plumber for you if there is an issue and you are not going to be able to run over and make necessary repairs or maintain the property. Planning for these services will ensure a smooth experience for both you and your renters.
Marketing Your Vacation Rental
Most communities in tourist areas have online services to market your vacation rental property. In addition, you can create your own website, list on community boards and market through a management company who helps find renters for you. Other marketing plans include working with local attractions to offer their patrons a discount on your property or even working exclusively with a travel agent. But the most important thing to remember is that your vacation rental property is cost you money rather than making you money when it is vacant. This means that unlike any long-term rental properties, a vacation rental property could require a greater investment in marketing and property management. This is an important piece of information to consider when you are deciding if a vacation rental property is the best investment choice for you or if it just looks like it will be the most fun.
Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.
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