Don’t be misled by realtors, TV shows or rental agents that stretch facts!
Popular shows like HGTV's "Vacation House For Free" can lull viewers into thinking they can own their dream vacation home by buying, renovating, furnishing, and renting it out for part of the rental season and cover all the cost of home ownership.
Making a return on investment with a vacation home might be possible in some cases, but buyer beware! As Cheatsheet.com explains, this is the exception, not the rule. Renting a vacation home is a great way to offset the cost of ownership, but don’t plan on making a profit.
Gains in real estate ownership are more likely from long term appreciation and income tax reduction by writing off losses against other income. Investors need to be well versed in complicated tax laws to know if the benefits of renting a vacation property if right for them.
Read more at HolidayVacationRental.com.