It seems that everywhere I turn people are asking me about buying a vacation rental. Realtors, investors, people that have never owned a home-Airbnb is all the rage in real estate investing…and it should be IMO.
Why? Because it’s fun, it helps the world become more connected and it’s a great way for the average Joe to significantly increase their wealth and plan for their retirement. It’s also way better than spending money on silly stuff. Except…with an Airbnb you can get the thrill of buying silly stuff, it’s just now a tax write-off! For example, last week I bought a Ms. Pac-Man game console. The stand-up console. Like from the arcade days. Also, it includes Donkey Kong, Frogger, Galaga and 57 other amazing arcade games (for those of you in my age group-YES, it’s still as amazingly fun to play now as it was decades ago).
I’ve also purchased numerous ping-pong tables, foosball tables, beach and farm decor, fun furniture, crazy statues and other items I would likely never purchase for myself. These purchases are all completely tax deductible and enhance my Airbnb/VRBO business.
I’ve also travelled to unique places to look at buying more vacation rentals: legal tax write-offs.
Guys, I’ve increase my families wealth by millions and millions of dollars over the last 8 years doing this. And while there are occasional headaches and missteps, overall, it’s a damn fun way to make money and meet people.
One of the questions I get asked the most, is how do I afford to buy so many houses? That is a loaded question-it’s been everything from savings, HELOC’s, hard-money loans, begging my parents, credit cards (yep), traditional loans, self-directed IRAS, 401k loans and commercial loans. If you want to grow at the level I have, you have to be willing and ready to get legally creative with your finances.
Eight years ago, nobody would lend you money to buy an Airbnb. That was then, this is now. There are numerous platforms that will lend money for you to buy this type of investment. Why? Because lenders finally figured out that they will most likely get paid back on these usually solid investments.
The time is now-and I am putting my money where my mouth is-me and my business partner are closing on a new Airbnb on Monday…in this market. In this high, elevated-priced market. Why? Because chosen carefully, you can still find great investments.
Check out this article on ways to finance your vacation rental. If this is something you have dreamed about, get off your butt and get going-you cannot get back time and time IS money in this case. Stop worrying about the “what-ifs” of the economy-it will retract at points, but if you make smart investments you will survive…and your vacation rental investment plan should be a ten year or longer plan so what happens next year to sales price won’t matter (however, be smart as occupancies can change).
As always, if you are serious about investing, reach out to me and let’s see how I can help. And if your deal’s great and you need a co-investor, maybe we can work together.
Lastly, if you are ready for your next vacation, visit our property management company’s page, A Salty Dog Property Management, and come visit. www.asaltydogpm.com
Believe in yourself and be ready to work hard…guys, You Got This!