Invest In. Set Up. or Sell a Vacation Rental Property
How do you start shopping for a vacation rental home to create a passive source of income? Maybe you already own a second home, and are thinking about setting it up as a vacation rental property? Or maybe you are thinking about selling your vacation home that is already producing income but don't know how to market it to the public for sale? First, you need to start with a knowledgeable Realtor. One who is experienced in dealing with the complexities of setting up, buying or selling an income producing property. When selecting a Realtor like Jeff Grohs of Residence Portfolio you need a professional to assist you with navigating and consideration of the following items.....
IRC 1031 Exchange
Will your sale or purchase be an IRC 1031 Exchange? Are you in compliance with the regulations? Can your Realtor assist you through the 1031 Exchange process and paperwork?
Can your Realtor help you determine the amount of passive income that the property might produce in any given year? What might the expense categories be? Can the seller provide this history?What might the tax consequences be to the seller?
Will your purchase or sale fall under certain HOA Restrictions? Will your Realtor help you identify each candidate properties different HOA characteristics?
Do you know the "Target Market" that you want your property to reach? How can you determine if your buyer or seller is serious or qualified?
Licensed vs Non Licensed
Paying Local Taxes
Will you be operating as a licensed or non licensed property? Is the current property licensed? (Less than 30 day rental). How long will it take to get a license? What are the restrictions and costs? Has the seller been submitting local taxes? Will the buyer be submitting local hotel taxes?
What kind of marketing will you be doing/have you been doing? What rents/fees will you (have you) charge(d) the guests. What rates of commissions have you been paying or do you expect to pay?
Location, Projections, Restictions.
Is the property in a desirable location? Can it be expected to produce a decent income? What might the projections be?
What might the local restrictions and regulations be that might affect the rental of the property?
Will the property need improvements prior to sale or purchase? What improvements are prudent? Should you buy or sell it furnished? What does it mean to buy or sell it with the: "fixtures, equipment and inventory included"?
What vendors have you been using or intend to use? (Pool, Housekeeping, Repair). What amenities are offered? Do you or will you allow pets?
Third Party Platforms/Owners Closet
What third party platforms will you be (or have you been) on? VRBO, AirBNB? Do you intend to have an owners closet? Does it already have an owners closet/space?
Jeff is the most professional agent I have ever worked with. I have bought and sold many properties and he is by far the BEST! He has integrity and is calm, shich is what one needs when buying/selling property. He gets back to you quickly which is another thing I truly appreciate because I do know how busy he is. I highly recommend him with 5+ stars.