Ok, so the Outer Banks is like our second home. But ... investment in rental property ... does that make sense
... if we do this, can we ever vacation anywhere else ... what the heck am I getting us into??? This was what went swirling through my head when Janet and I first spoke about this possibility in 2002. A rental property investment can be intimidating to say the least.
We put ourselves through a little more stress in 2006 when we decided to buy a second house in the Outer Banks. This time, just for added recreation (interpret that as stress), we decided to build the house ...
all new challenges that we did not encounter with our first house on top of the list of things to be done with an existing structure purchase.
It seems overwhelming at first, but an investment in rental property is manageable if you are willing to put a little time in upfront and dedicate some time ongoing to make sure your Outer Banks rental is properly maintained. Also, a key consideration is finding an Outer Banks realtor that you feel comfortable with and trust as they will be your eyes and ears during the purchase phase, especially if you live a considerable distance from the Outer Banks.
So now you’ve read through all of my concerns, you are no doubt saying to yourself … he didn’t answer any of the questions … what the heck? To get the questions answered, please click on the links in the first two paragraphs and they will provide you with how we went about and answered all of the questions that were swirling around in our heads. Remember: you MUST be methodical. This is a business … YOUR business … so make sure you spend the time to go about this correctly. You must develop a means to track how your investment in rental property is doing. If you do that, your rental property will pay off handsomely and you will be able to visit your "Piece of the Outer Banks" anytime you want … as long as you stay within the government guidelines for use of a rental property, which is the lesser of 14 days or 10% of the total days the rental property is rented by others at a fair rental price.
The thing we like best about our investment in rental property in the Outer Banks is that we can go and have a wonderful vacation … try doing that with a stock certificate. And, finally, just because you own Outer Banks real estate does not mean you HAVE to vacation there … you could always use the rental income.