There are always two sides to every story, especially when it comes to purchasing vacation
rentals for use as an income vehicle. Consider these pros and cons of vacation rentals in Florida
and its different cities, such as New Port Richey and Orlando, to see the bigger picture and
make the right decision for your investment portfolio.
While each situation is unique and can bring other variables you’ll need to contemplate, we’ll
cover the top contenders common to most vacation rentals.
Location
While you’ve probably heard it before, when it comes to owning a vacation rental in Florida,
you’ll be in good company, so to speak. In most cases this type of real estate is located in the
most desirable location in the various cities of the state, like New Port Richey, Miami, and
Orlando, making for an overall better investment. The more features the better, is waterfront or
water view available? Are there added amenities that can increase your potential income? On the
other hand, prime real estate equates to the higher end of the market, so you’ll have to initially
invest more and be at a higher risk with the investment.
Equity
In general, real estate investments increase in value over time. You’ll enjoy not only the returns
from your vacation rental in Florida and the many cities that come under the state,
including New Port Richey and Florida city, you’ll be building equity. When building a
portfolio, you can use this as more leverage or turn the property into cash, when you’re ready to
sell.
Higher upfront investments are a drawback of vacation rentals, as a second home, you won’t see
the lower down payment requirements that are common to homeownership. In most cases, you’ll
need to have a higher than an average credit score to take on the additional debt.
Cash Flow
Who doesn’t want extra income! It goes without saying that owning a vacation rental in Florida
is an alluring option, as many renters seek out just this type of property. Often, great experiences
lead to return visits and even more rentals through word of mouth. Unexpected expenses can
certainly put a damper on the bottom line. While you can count on your monthly maintenance
and routine repair expenses, it would be wise to set aside funds to cover emergencies. Time is
precious and limited when vacationers are occupying your property in New Port Richey or
other cities in the state. You’ll need to act swiftly to keep your tenants happy should
something go wrong.
Accounting
Deducting business-related expenses is another plus to owning a Florida vacation rental. Routine
costs such as cleaning services or property managers can be written off of your taxes. It’s wise to
have a professional tax advisor for reliable advice on what records to keep each year. Now, be
aware from the start that you’ll have to pay more taxes and other fees associated with this
business in the cities such as New Port Richey, Miami, and Orlando.
Free Time
How exciting! Naturally, you could plan on spending your retirement years in the property you
select as your vacation rental in Florida. You’ll have the dream vacation home you selected at
your disposal. Just remember, your highest rates and peak booking dates will likely be during the
prime you’d like to vacation or special dates on the calendar, such as holidays. For this reason,
don’t count on spending these times on the property, unless you’re willing to lose income.
Upkeep and maintenance of the property can be costly, especially if all of the services are hired
out for each turn over of the unit. Do-it-yourselfers often find their vacation property nibbling
away at the free time they would rather be enjoying.
We’ll guide you through the benefits and risks Florida vacation rental investments can bring. See
how we can assist you with balancing the pros and cons while optimizing your time and returns
on your property in the cities of Florida, like New Port Richey and Destin, and returns on your property, call Florida Investor Deals today at (954) 280-5883 or send us a message any time!