Real estate investing is a great way to create passive income for your family. However, when it comes to real estate, there are many different options for investors. So where should you start? One option that is becoming increasingly popular is vacation rentals, but what makes vacation rentals a good idea? Kay Carlson Realtor – Remax Mountain Properties shares her expertise for anyone looking to start investing in Prescott real estate.
If you already have a second home, it can easily be utilized as a vacation rental when you are not there. This could provide enough income to not only cover the costs of the second home, but it could become a steady source of passive income to help fund your family vacations.
Owning a vacation rental can provide two benefits for you. When you are not renting it to out-of-towners, you can use it as your personal vacation rental. This flexibility is especially useful when you have family members who visit on a regular basis.
Over time, most homes appreciate in value. By simply having a second home, you are making a long-term investment. By using the extra income of the vacation rental for renovations and improvements, you can raise the value of the home significantly without spending any out-of-pocket cash.
Having a second home can provide several tax deductions. In combination with the revenue from the vacationers, you could net a significant amount at the end of every year. There are, however, certain requirements regarding the number of days that the property can be rented out versus how many days you live in it. You should speak to an accountant and real estate attorney to make sure you are claiming all available tax benefits.
Vacation rentals have many great benefits. If having a vacation rental in Prescott is the right investment for you, contact Kay Carlson Realtor – Remax Mountain Properties today at 928-710-4193 to learn how we can help you grow your vacation rental investment.