Did you know that there are over 7.5 million second homes dotted throughout the United States?

Some people keep them all to themselves, but what about having the best of both worlds? A vacation home rental property generating an income that you and your family can also use every year!

It can be done, and we’re going to discuss why it can be a great investment. Let’s take a closer look at the pros of investing in a vacation home rental property.

More Income

Decisions about investing in vacation home rentals should be made like any other investment decision. The heart may say one thing, but if you go with your head, more income will be coming your way!

Of course, you need to choose a place you love. If you love it, it’s more likely that other people will love it too. But do your homework, calculate realistic returns, and then make your choice. 

Enticing Tax Breaks

All rental income needs to be reported to the IRS. Currently, there are several deductions that homeowners can claim for vacation rental homes. 

These include:

• Mortgage interest
• Home repairs
• Property tax
• Depreciation
• Certain expenses

It’s important to note that while repairs are tax-deductible, improvements are not. But these deductions can make a vacation home rental property an attractive proposition.

The IRS has rules around rental properties that are also used for personal use. Make sure you follow these carefully, and you’ll be able to claim expenses. 

Exotic Locations

Florida has been popular for vacation rentals for a long time and still is. But there are lots of exotic locations a relatively short flight away that you can consider.

For example, choosemarbella.com has enticing, luxury properties in Spain to tempt you.

If other parts of Europe are calling you, what about Portugal or Greece? Panama and the Dominican Republic can be great choices a little closer to home.

Personal Vacation Home to Enjoy

Imagine having your own home away from home to get away to anytime you want.

You don’t need to worry about finding and booking a hotel. No worries about whether you’ll like the location, or the room will be comfortable. You’re heading for your own, private home.

It’s a great place to get the whole family together. Plus, you’re in control of the schedule. With advance planning, you never have to worry that it won’t be available when you need it.

Build Equity

Make a wise investment, and you’ll watch your equity grow year on year.

This is a great way to build up a nest egg for the future. Whether it’s for enjoying your retirement or putting the kids through college, it could be a great way to save for the future.

Get the Best of Both Worlds

With a vacation home rental property, you really can get the best of both worlds.

Choose a great location you’ll want to visit year after year. Choose a spot that people love, with a strong vacation rental demand. You’ll be building equity and earning a passive income, all while enjoying your personal home away from home.

We hope you’ve enjoyed this article. Are you looking for more helpful advice? Head over to our Real Estate Investment section today!