There’s a lot of chatter around the advantages of investing in vacation home rentals. The market for vacation rentals is unique and distinct from the traditional property market. Investing in traditional properties often takes the form of flipping houses, which is often a long term process. Vacation home rentals are a whole different breed of property investment and can bring in a steady stream of income that differs from traditional methods.

The market for vacation home rentals has been surging over the last few years and shows no signs of slowing down any time soon. Investing in these properties can be lucrative and brings in an extra income that can cover the costs of owning the property.

One major difference between the market for vacation home rentals and traditional properties is the potential for steady income. Traditional property investments usually return a hefty figure after fixing up a single-family home, for example, and selling it. However, after the sale, that’s all the money you’re going to see out of that property. Vacation home rentals, on the other hand, keep on bringing in money that you can use to reinvest and grow your portfolio further.

Traditional properties for long term home buyers are completely different than vacation rental properties. Buyers for these homes live in them full-time and often make improvements to the property.

You’ll also see a difference in value for traditional properties versus vacation rentals. Proximity to jobs, schools, and hospitals will have a greater impact than on traditional properties. Conversely, access to entertainment and scenic locales like glistening beaches will affect vacation rental property values.

Buying up traditional properties for house flipping and catering to long-term buyers can bring in a nice lump sum, but it’s still hard to beat the steady stream of income that vacation rentals provide.

Vacation rentals require continuous upkeep to offset the usage of the property by tenants over time.

Another savvy option available to you as a real estate investor is to use the money from the sale of single-family homes to put into more vacation rental properties. In this way, you can have your cake and eat it too.

When you sell a single unit at a profit, you’ll be sitting on a nice stack of cash to work with. While you shouldn’t plunge all of the proceeds into buying vacation rental homes, you can use it to make the first few payments on them and not have to worry as much about filling it with tenants early on.

The primary difference between traditional properties and vacation rentals is that the latter generates an income. You can make enough to cover the costs of running the vacation rental property and have a profit left over.

There are numerous tax benefits that you can leverage from renting a vacation rental. Benefits include tax write-offs and deductions that put more money back in your pocket.  

There are two major players in the rental home market, Airbnb, and VRBO. Here’s what sets them apart.

The Airbnb platform connects short term renters such as travelers, to homes across the country that are available to rent. These properties can vary greatly in character, allowing for a wonderful variety for travelers to choose from.

Airbnb properties make for great investment opportunities and are gaining on hotels in popularity.

VRBO, or Vacation Rental By Owner, is a leading network for vacation rental properties. What sets VRBO apart from Airbnb is that these rentals are specifically vacation oriented.

In capitalizing on vacationers, these rental properties are strategically located in recreational hotspots. The margins for vacation rentals through VRBO are impressively high. In the right spot, and with the help of an accommodating lender, you can make a tidy profit on VRBO properties. 

In order to make money renting vacation rentals like VRBO properties, you’ll need to get financing for the purchases. When it’s time to start raising capital, don’t waste your time applying at banks.

Banks are unlikely to work with you because of the risks associated with rental properties. However, other more progressive lending organizations like Rental Home Financing are there to help investors access capital.

Rental Home Financing makes it easy to apply. No tax returns are needed, and a credit score of 640 is sufficient to receive funding. 

Short term vacation rental property loans are perfect for investing in VRBO properties. Designed with the vacation rental investor in mind, you can get up to 75% of the property’s valuecovered under the loan.

When you partner with Vacation Rental Property Loansyou can get 30 year fixed rate loans that have competitive payments. You can also expect fast closing times of around 3 weeks, meaning you can move on VRBO properties quickly before they’re snatched up.

Nowthatyou know the nuances of vacation home rentals and what separates them from traditional properties, you’ll need to secure financing. Finding funding for vacation rental properties can be challenging, but Rental Home Financing makes it easy on you. You’ll benefit from fixed rates, and stated income loans that don’t require you to show tax returns among other advantages offered by Rental Home Financing.  

Reach out to Vacation Rental Property Loans and get the funds you need for a head start in vacation home rentals.