Your Vacation Home is a Smart Real Estate Investment

Your Vacation Home is a Smart Real Estate Investment

Everyone dreams of having a vacation home, and the best way to make money outside of your normal nine-to-five job is by investing in real estate. By having your vacation home double as a short-term rental property, you can get the best of both worlds. Taking the leap into a first-time real estate investment can be scary, but with a little planning it can be a solid investment while giving you the vacation home of your dreams.


Build A Vacation Home

durable finishes for vacation home rentalAs a first-time real estate investor and potential vacation home owner, you’re probably considering what options will work best for you. Building a custom vacation home allows you to customize your vacation home to your desires, while also customizing it to get the most rental potential. Unlike buying a home that is already built, you’ll be able to customize a home that will be ideal for renting. Ideal rental homes will include hard, durable, easy to clean surfaces, as well as 2 to 3 bedrooms with joining bathrooms, and a clearly defined entertaining space. Because you’re building, and not buying, you’ll also be able to customize your home to what works best for your family while vacationing, which will likely be what potential renters will want as well—allowing you to rent for a premium.


Rental Income

Let’s face it, you can’t be on vacation all of the time. So having a vacation home that just sits unused is a waste of resources. But when you use your vacation home as a short-term rental your rental income will help to pay the mortgage and other property related expenses, such as insurance, maintenance, and property taxes. Your vacation home can become a source of steady income that can help to supplement your own vacationing.


Property Appreciation

It’s no secret that real estate can be a fantastic investment, and your vacation home will be no different. A well-placed vacation home will appreciate in value and can be sold in the future for serious profit. The best part about this added value is you don’t have to do anything to achieve it. Normal real estate appreciation will occur. And if you want to get even more profit from your vacation home sale, you can always make improvements on the property.


Tax Benefits

tax benifits of owning a second home build on your lot custom home builderAn investment property, just like your primary home, provides tax deductions. These tax deductions apply to your mortgage, rental income, insurance, rental expenses, and property taxes. However, a vacation rental can become complicated depending on the number of days you actually live at the property and how often you rent it out. Therefore, we highly recommend that you work with a professional accountant and real estate attorney to get the maximum tax advantages without risking breaking any tax laws.


Easy Money

home cleaning short term vacation home rentals build on your lot custom home builder luxury buildAlthough you can build several vacation rental properties and turn rental management into your full-time job, you don’t have to in order to start making money in real estate rentals. You can manage renting your vacation home yourself utilizing services such as AirBnB , Vrbo, and HomeAway , or you can contact a vacation rental management service and save yourself from a the part-time job of rental management. Vacation rental owners who manage their property themselves will be tasked with things like cleaning the property, refilling toiletries, and mitigating and damage caused, while fulfilling your duties of your nine-to-five job. If you live close to your property this may not be a big hassle. If you don’t a rental management service can help to take over these time-consuming duties.


Interested? Take the Next Step.

Building a vacation rental is a great entry point for real estate investment that involves less risk than other options. If you’re a beginner, you might be wondering where to begin. Putnam Builders can help you choose a popular location, perform a comparative market analysis, and advise you as to best layout and durable finishes that make a premium vacation rental. Rely on our over 50 years of experience to help guide you toward a sound investment and the vacation home of your dreams.


Contact Us


Putnam Builders has been building custom homes on the Gulf Coast of Texas and surrounding areas since 1963. We would love the opportunity to discuss your custom home ideas in our design studio in Bacliff, TX or in the comfort of your own home. Please contact us at 281-339-0838 or request a free consultation.



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