29 Replies to “Exposing The Truth About Vacation Homes and Real Estate Investing #AskTheMoneyGuy”

  1. Great advice guys! I never owned a vacation rental, but I did own a rental house and a tri-plex on a couple of occasions. I will never do this again, as the act of dealing with renters is not easy. If you're lucky, you'll get someone who'll treat your property as if it were their own. But in the vast majority of cases, I found renters hard to deal with and abusive to my property. I'd much rather invest my money in the market and buy securities. I can buy & sell with the click of a mouse, and I don't have to fix toilets at 3am or try to collect rent from deadbeats.

  2. #1) You don't know what you are talking about.
    #2) You don't know what you are doing.
    #3) You don't know what you are talking about.

    Education is key. I have owned my condo for 5 years now and we are now looking to buy another in the same city. I have learned so much and profit has been great. I spend about 2 hours a week working on dealing with it because of the education I have gained.

    We go somewhere different each year, i.e. Grand Canyon, Florida, etc. You are not locked in any more than if you didn't own it. That's just crazy.

    I guess it's sad that I have to pay taxes on all of this income I am generating off of my investment. You keep going back and forth contradicting yourself. Anyone that wants to know how to make money owning a vacation property are welcome to contact me. And, I do property management for rentals in Pigeon Forge.

  3. My grandmother always wondered why tenants make holes in the walls. I've never made a hole in the dry-wall/plaster myself, but somehow every tenant always left with holes.

  6. Poor advice. This video provided all the cons of purchasing a vacation rental. There are so many positives to investing in one. Be smart, get what you want, and yes, work is involved! Pros- make money, own a piece of prime real estate gaining value, and a vacation spot to make memories. Good luck and don’t let videos like this scare you. You can do anything you set your mind to and create the life you want.

  7. Own a vacation rental property. Everything these two say is correct as far as it being a headache. IF YOU THINK OF IT AS YOUR HOME. Get it in your thick head that it is a business. Treat it as you would an active business. Hire management and maintenance pros that you research just like any other employee/contractor. If you do, it can be very lucrative for those people who already have their finances and retirement plans in order. It is for me. It should, however, be last on the order of things to invest in.

  10. Don’t let this video discourage you from purchasing a vacation rental. I agree with most of what the Money Guys say, however their reasoning in this video isn’t very valid, especially in a historically strong vacation rental market.

    To further elaborate- A Tesla is a worse investment than a short term vacation rental. Using your 3 criteria:
    1. It locks you down. You feel like you have to drive around in it all day because you overpaid for a car. You have to do videos, phone calls, zoom meetings, etc in it all day. Heck, you probably feel the need to sleep in it. I’m convinced you would shower in it if you could.
    2. It is not cheap. Not sure exactly how much your Tesla was but I’d venture to guess it was more than my Honda. Real estate generally appreciates. Cars ALWAYS depreciate.
    3. Is the car an investment or personal use? What the ROI of a Tesla? It’s not an investment because it’s not making you money.

  11. Thanks. I was on the verge of buying a vacation home we and our two grown kids families could use at a beach we've loved for over 30 years. No renting and I can easily afford it, but still, I understand now. I'm convinced. You guys probably just saved me at least $500K. It'll fund some nice vacations now and the rest will go into our burgeoning long term care savings.

  14. Thank you for a great advice. I thought about the points that you mentioned and afraid to buy a second house. We have no skill to fix our house. Thanks again.

  15. You learn pretty quickly that there is an embedded cartel of real estate agents and property managers that feed off of vacation home owners. In the popular areas by the time you get through with insurance, management and hoa fees you'll never come out ahead. And that's if you pay cash!

  17. I LOVE my vacation home. I got an excellent price on it, though. Plus four lots basically free. Timing is everything. It is surrounded by pines and oaks, and I enjoy taking care of it. It is only sixty miles from my Cottage. Run the numbers. I swim in the lake, bike and hike there.

  19. Driving up to the Beaver Creek Ski Resort there’s beautiful homes along the golf course, many were purchased for $1M ten years ago. These homes today are now worth over $3M. The families that enjoyed them were paid $200K a year to enjoy them. (1M – 3M = 2M) 2M / 10yrs = 200K.

  23. I did not consider that I may need to get a crane to replace the air conditioner. Thanks for this video. I will look into that before I submit an offer on a high-rise condo I was about to buy in Daytona Beach. Phew.

  24. Beaches are tough to profit from vs. other investments, but I have to disagree on NC and TN mountain homes. Purchase prices are low vs. the income they generate. My NC cabin generates more cash than I know what to do with.

  26. I disagree, if you like what your doing it doesn’t feel like a job be self motivated do not be lazy don’t be afraid to get your hands dirty focus and stay on top of things it’s good to be aware shit breaks but be smart about it and don’t let this video be discouraging

  27. While I really appreciate the advice, you guys did not answer the question of "when should I think about financing a vacation property" other than to say "don't do it". If rental homes weren't worth it then markets would be flooded with vacation properties for sale and that doesn't seem to be the case in the area I take vacations each year. If I have 20k in cash I'm probably not ready. If I have 50k, would that be enough to start looking? There are lake front homes for sale under 200k but those are smaller than I'd prefer so probably not. Even finding out the process for purchasing a 2nd home seems pretty difficult to do. Just gonna keep looking to see if YouTube has any other info on this topic.

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