Money, investments, and other financial stuff

[Blueprint]

Wife and I were minority owners (25%) of a beach house in Maine for 3 years. Despite paying local caretakers, the house basically paid itself. The partners, another couple, were not as involved as we expected them to be and while we were making our move to buy them out, the other guy had a 6th kid, but with his wife's business partner. So the house was sold off, and we made a nice profit for our efforts.

What we learned - we have the knack to manage vacation rentals (only 5 star reviews for those 3 years, returning customers), if you plan well the places will pay for themselves or even have operational profit while you build equity, but never go into business with friends if you get attached to / always dreamed of said business. Be ready to cut the ties at any time.

[Firm]

That's good advice. One important factor for me is that Mrs.Firm is currently a stay-at-home mom, and in about 1-2 years our youngest will be in school full time, which means her schedule will be a lot more flexible. I wouldn't want to take her focus off of the family, but if she had something, like a rental property(s), or similar, to manage a few hours a week, it would probably be a good thing for her.

[Blueprint]

That's good advice. One important factor for me is that Mrs.Firm is currently a stay-at-home mom, and in about 1-2 years our youngest will be in school full time, which means her schedule will be a lot more flexible. I wouldn't want to take her focus off of the family, but if she had something, like a rental property(s), or similar, to manage a few hours a week, it would probably be a good thing for her.

Similar situation here. My wife was seeing herself transitioning from her demanding healthcare work to managing our properties. Had we bought out our partners at the time, we would probably have two other units or more at this time. Back when we started, our beach house was renting at $4k USD/week. Recently - should not have looked - current owners have it at $9kUSD/week as the market went waaayyy up. But that ship has sailed, no way with could do that at today's prices, and especially not in the US - even just for the exchange rate.

[RRocket]

Who can afford $4k a week..let alone $9k a week.

[Blueprint]

Who can afford $4k a week..let alone $9k a week.

It's a big house, so in our days it rented to groups ie two families with kids, or even 4 couples. It was sold out every summer, still is. Our last year we were rented out more than 50% of the year, with variable rates per season of course. The house had a reverse plan, with living spaces on the 2nd floor. Built on a rock, from the top deck your view was over the roofs of the oceanfronts accross the street. Salty air, inexpensive wine and lobster bought at the dock ... miss that.

[Firm]

Yep, if we went that route it would be in the Pensacola / Destin area and it's similar, right now you're looking at $4-6K/week to rent something similar, and that's typically what people do, couple families, or a larger family gathering. Places are booked solid April-November.

We go a couple times a year, and have a loyalty deal with one of the resorts down there that gets us a nice ocean view balcony room for about $2500/week....But it's just a room, not a house or even a condo. Which is part of my motivation here, if I am already spending ~$5K/year on rent down there, that would cover a good chunk of my operating cost if used some cash to buy a modest beach house that we could rent when not using it.

Course, there's risk....it's dependent on the vacation market, there's hurricanes to worry about, travel back and fourth when stuff goes wrong, etc. Plus, acquisition cost is relatively high. Locally here in the Memphis area you can find newer starter-home type detached properties for ~$200K, and they rent for $2.5-3K/month....While boring, the return on something like that, is pretty good, especially if you grab 3-4 of them.