Vacation Rentals as Passive Income

As a real estate professional I get a lot of questions about the value of real estate as an investment. Real estate has become the foundation of my savings and investing, mostly through the acquisition of long term rental properties. 

One of the strategies that some investors use is owning vacation rentals, or short term rentals. I've had clients that have made quite a bit of money through vacation rentals, but you have to make sure to buy in the right area and it takes more maintenance than a long term rental, since you have to clean up and change linens after every tenant, and tenants stay from one night up to about a month at a time on average. Rent can go a lot higher if you buy in the right area, and even though there is more upkeep through cleaning, etc. your equity will often grow faster on vacation rentals. 

This is the tiny house of an artist friend I made in Costa Rica earlier this year. He used a shipping container as a base and other modern tiny houses as inspiration. He told me that renting out the loft above has been a great source of side income for him ever since he built it. 

Home Equity

Home equity. Every month homeowners are making their mortgage payment they are adding to their family's overall wealth. 30 years worth of home ownership ends up in a paid for home with 💰💰💰 real equity. 30 years of renting and you're lucky if you even get your deposit back! The earlier you can start, the better. It's not the best fit for everyone to buy now, but it might be for you. 

As you build up home equity your purchasing power increases. If you decide to invest in real estate in Logan or elsewhere in Northern Utah, you might be able to dip in to your home's equity to come up with a down payment. Starting now could give you a huge leg up as you progress throughout your career, wether that means you buy now with an FHA, USDA or conventional mortgage, or start a rent to own program to get on the path to home ownership. The time is now.

Logan & Cache Rent to Own F.A.Q.

Why rent to own in Cache Valley?

Rent to own is ideal for families that are not yet able to qualify for a regular mortgage, but that should be ready within about a year. In stead of moving from apartment to apartment, it's a way to get into your home now, and you can rent it until you qualify for a mortgage. 

What costs are associated?

If an applicant is accepted into the rent to own program, they pay an up front option money deposit. This deposit is like a down payment, and goes toward the purchase of your new home. It can range from a thousand to a few thousand dollars. From the time a rent to own buyer moves in

Why don't I just get a mortgage and buy a house now?

Part of the pre qualification process is meeting with a mortgage loan officer. If the loan officer tells you that you qualify now, there is no reason not to get a regular mortgage. We are able to help you through the home purchase process, and some buyers are able to skip the rent to own process altogether.