Rental Investment Questions

[Paula]

i just recently did some research on the deductability of expenses if you rent your home and use it more than 14 days. it seems that you can deduct a % of your expenses based on the # of days you use it. for example lets say you rent it for 70 days and stay in it personally 30 days you can write off 70% of your expenses. THE BIG DIFFERENCE IS IF YOU USE YOUR RESIDENCE MORE THAN 14 DAYS PERSONALLY YOU CAN NEVER TAKE A LOSE for the year. i'm pretty sure that 100% of people who own one unit use there home much more than 14 days personally per year. lets here from people who rent there unit and use it more than 14 days a year.what are all the rules?

Very helpful. I guess when it's time for me to stay at the cottage for longer periods of time, I'll do the tax trade off research first. I don't think 100% of people who own use their home much more than 14 days personally per year when they first buy it (though I'm sure the number is pretty high unless they bought the place just to sell it). Like me, they may buy it with the plan to use it more often as they get older. And some of the periods that they spend in their beach places now are spent, in part, cleaning/maintaining/upgrading if they want to keep their rental in the best shape possible for renters (and maintain it in general). Personally, I like taking care of the place so I don't mind putting that time into the cottage and at least I'm in sunny weather when I'm doing it and when I'm done I get to go to the beach, sit on the porch, visit with friends, go out for good food. I could pay someone else to do it (sometimes I do) but I find I can do some of the work better and cheaper myself even after airfare (and some work I hire out). Since I started exercising a few years ago, I count the work as good exercise, too. If you don't rent your place out, you really don't have to worry about the details of maintaining/upgrading in the same way unless you want to, although all homes need upkeep.

It has all been worth it many many times over for me and others who are enjoying their place at the beach (all dreams have a cost). No doubt, it may not be for someone else.

 

[baky]

Geez, was it something we said?

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:rofl: Naw what would make you think that.

Note to Moderator: Please change the forum name to "Click here if you want to be talked out of buying property in SoWal" ;-)

In all seriousness, I think the cash and carry approach will be easier for my lifestyle....and reading several of the discussions just makes it that much easier.

 

[SHELLY]

:rofl: Naw what would make you think that.

Note to Moderator: Please change the forum name to "Click here if you want to be talked out of buying property in SoWal" ;-)

In all seriousness, I think the cash and carry approach will be easier for my lifestyle....and reading several of the discussions just makes it that much easier.

It has nothing to do with being "talked out" of buying a property...it was more along the line of becoming enlightened to the fact that you weren't going to profit from an investment that would also serve as a "free" place to crash when you come for your vacation.
.

 

[fisher]

:rofl: Naw what would make you think that.

Note to Moderator: Please change the forum name to "Click here if you want to be talked out of buying property in SoWal" ;-)

In all seriousness, I think the cash and carry approach will be easier for my lifestyle....and reading several of the discussions just makes it that much easier.

Renting is easy and you won't feel tied down to just one place. No hassles of ownership. No hassles of finding your place damaged by the renters when you arrive for some peace and quiet at your palace. No risk of loss.

 

[Paula]

So far, renters haven't been harder on my place than my own family is. Just normal wear and tear. We don't keep our home like a museum and we don't keep our cottage like a museum. I like the feeling of "home" when I get to our cottage - I don't have to wonder if there are enough plates, if the mattresses are comfortable, if anything is musty, or if the advertising represented the place well.

I don't feel tied down to one place at all. While the renters are at my place (or any time of the year), I can go somewhere else if I want to (and I do). The cottage is just one of the options I have for vacation.

 

[baky]

It has nothing to do with being "talked out" of buying a property...it was more along the line of becoming enlightened to the fact that you weren't going to profit from an investment that would also serve as a "free" place to crash when you come for your vacation.
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I wasnt trying to profit....I said several times it didnt matter if I had to put some money in...I was just wanting to cover as much as possible, but with everyones positive attitude it actually drove me the other way. I would assume someone like myself that it already a homeowner and stated paying for the entire home isnt a problem would already be aware of normal home maintenance and responsibilities. I was inquiring about rental and condo info....I got the info I was looking for but you guys should be a little more positive if you want to sell stuff at SoWal.....oh well I will be a great renter.

Cheers!

 

[SHELLY]

Renting is easy and you won't feel tied down to just one place. No hassles of ownership. No hassles of finding your place damaged by the renters when you arrive for some peace and quiet at your palace. No risk of loss.

I agree with that 100%.

The $100K down payment alone will go a long way to providing several years of worry-free vacations in SoWal (or somewhere else, to mix it up a bit). If you add to that the money you'd be paying each month for carrying costs, you can have a lifetime of pretty decent worry-free vacations.

Vacation properties were only fair to poor "investments" (if that) up until the RE Moneygrab Frenzy--then during the run-up, only pure speculation, greed and stupidity made for short-term gains (and subsequently long-term losses). For the majority of folks, a primary residence is all they need to fulfill the "real estate" portion of their portfolio.

If, after all financial boxes are ticked (retirement, college fund, savings, primary home, insurance, completed bucket list) one has money lying around collecting dust, and they feel the need to own some real estate, a piece of land would be my choice.

 

[SHELLY]

I wasnt trying to profit....I said several times it didnt matter if I had to put some money in...I was just wanting to cover as much as possible, but with everyones positive attitude it actually drove me the other way. I would assume someone like myself that it already a homeowner and stated paying for the entire home isnt a problem would already be aware of normal home maintenance and responsibilities. I was inquiring about rental and condo info....I got the info I was looking for but you guys should be a little more positive if you want to sell stuff at SoWal.....oh well I will be a great renter.

Cheers!

Remember this?

Im a little confused as how some may say beach property isnt an investment....if you buy a nice condo in the right spot for the right price....it can cash flow pretty easily or get real close....that looks like a good investment to me.....

I'm assuming you're no longer confused?

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[baky]

Remember this?

Im a little confused as how some may say beach property isnt an investment....if you buy a nice condo in the right spot for the right price....it can cash flow pretty easily or get real close....that looks like a good investment to me.....

I'm assuming you're no longer confused?

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I was never confused....i like a beach property with income to help offset the expense....I just dont want the hassle of dealing with everything else.

 

[Paula]

Well, sounds like this thread has given anyone thinking about buying a second home a lot to think about. Works for some people (like me) and not others. So, I have nothing more to add here.

My mind these days is focused much more on "is it worth paying for private college?" Even more so, how do you make private college worth it in the long run if a private is a really good fit for someone? But these aren't questions for this thread. I would think the trade-offs are even more complicated to figure out than for beach homes because the benefits/costs are less tangible.