I don't think the spread on the 10/1 ARM vs the 30 year fix is worth the risk. I'd opt for the fix over the ARM although statisically you'll probably wind up refinancing or paying off the loan within 10 years.
As someone who has had a vacation rental in service for over 20 years I'd recommend keeping a sharp eye out on your property management. Depending on their model "repairs" can be a significant source of income for them. Also good management companies can change/sell. Over our ownership we've had to change our PM five times. I'd also stress to make sure you do at least an annual stay/inspection of the property pre-season to take a hard look at what needs repair/maintenance to minimize surprises and complaints. If you can make a second trip post season, especially if you plan on winterizing the unit even better.
That said, when we got into this "investment" our objective wasn't to maximize income. This was my FIL's "cabin in the woods" and we loved the little town it was in but it is 500 miles from our current home (and was 350 miles from a subsequent home when we moved away for a few years). I maintained relationships with the existing homeowners because I never wanted to be THAT neighbor. So far everything has worked out fairly well. That also said my husband wouldn't have been able to handle this on his own. He HATES having people moving our furniture and even the normal wear and tear that happens. Make sure your spouse is on board!
Good luck!
As someone who has had a vacation rental in service for over 20 years I'd recommend keeping a sharp eye out on your property management. Depending on their model "repairs" can be a significant source of income for them. Also good management companies can change/sell. Over our ownership we've had to change our PM five times. I'd also stress to make sure you do at least an annual stay/inspection of the property pre-season to take a hard look at what needs repair/maintenance to minimize surprises and complaints. If you can make a second trip post season, especially if you plan on winterizing the unit even better.
That said, when we got into this "investment" our objective wasn't to maximize income. This was my FIL's "cabin in the woods" and we loved the little town it was in but it is 500 miles from our current home (and was 350 miles from a subsequent home when we moved away for a few years). I maintained relationships with the existing homeowners because I never wanted to be THAT neighbor. So far everything has worked out fairly well. That also said my husband wouldn't have been able to handle this on his own. He HATES having people moving our furniture and even the normal wear and tear that happens. Make sure your spouse is on board!
Good luck!
Statistics: Posted by Carefreeap — Thu Jul 11, 2024 10:15 am — Replies 10 — Views 370