If you find the perfect home to spend holidays and summer days, enjoying life vacation style, but you don’t feel that you have the money to invest, consider two of my clients who bought a second waterfront home to rent out in Clinton.
Courtesy: VACASA.com
Between the equity they had in their main home and the money they saved, they were able to buy a fantastic back beach home on Whidbey Island. Using short term rental income they are able to pay for their entire mortgage for the year.
This allows them to “vacation for free” and earn equity in their lovely home! Check out The Sunlight Beach Escape on Vacasa!
Courtesy: VACASA.com
Here are some of the advantages…
- Rental Income: Vacation rentals in Washington can generate substantial rental income, especially if the property is located in a popular tourist destination like Whidbey or the San Juan Islands, in picturesque towns near National Parks or recreation areas or along Washington’s vibrant Coastline. You can often charge higher nightly or weekly rates compared to traditional long-term rentals when seasonal attractions or events are going on nearby
- Flexibility & Personal Use: As the owner of a vacation rental property, you have the flexibility to use it for personal vacations when it’s not rented out. This allows you to enjoy the natural beauty and diverse landscapes of your Washington investment while also generating income from your property.
- Appreciation: Over time, your vacation rental property may appreciate in value. Vacation rental properties located in desirable areas of Washington, such as those near national parks, waterfronts, or wine country, can appreciate in value over time. This potential for capital appreciation can contribute to long-term wealth especially in regions with strong economic development and population growth.
- Diversification: Vacation rental properties in Washington can serve as a valuable form of diversification in your investment portfolio. By investing in Washington’s real estate market, you can spread risk across different asset classes and potentially benefit from the state’s economic growth.
- Rental Demand: Washington’s tourist destinations often experience consistent rental demand, making it an attractive option for vacation rental property owners. High-season demand, especially during events like “Seattle Seafair”, Leavenworth Oktoberfest, the Skagit Valley Tulip Festival, and even hiking season in the Cascades, can be especially profitable.
- Property Management: You can choose to manage the property yourself or hire a local property management company in Washington to handle day-to-day operations. They can assist with cleaning, maintenance, and guest communication, ensuring a seamless rental experience.
- Tax Advantages: Some states offer tax benefits associated with owning a vacation rental property. You could potentially qualify for deductions on mortgage interest, property taxes, maintenance costs, and depreciation, depending on the specific tax laws in the state.
