Many of the buyers in Southeastern North Carolina’s booming real estate market are on the lookout for home number two. Some have been vacationing here for years and years in summer rentals and are making the move to purchase a vacay spot of their very own. Others are moving toward retirement, fleeing frosty climes and higher cost of living in the name of sun and sand. Still others are making an investment in their future, looking to secure an income generating property.
Purchasing a property with the intention to rent it out is a little different from buying a place that will be your home right away. That’s why we asked our friend Justin Ash, president ofto help us understand the goals and variables associated with such an investment. In past months we’ve discussed , as well as . Today we asked Justin a question we hear a lot when it comes to investment properties—Should mine be a long-term or a short-term rental?
That really is a great question and that answer will vary based on each owner and their ultimate desire for how they would like the property to perform. An owner should make this decision before they purchase a property because each scenario will ultimately provide a different outcome. Usually, long-term rentals are steady and reliable with lower investment cost, whereas short-term rentals tend to have a higher initial investment but also a higher return. The investor should look at the amount of money they want to invest and how long they would like that money to season before they begin to look for a property. It’s always a good idea to talk to an experienced property manager if you are on the fence—Sea Coast Rentals would be happy to talk you through the difference and help you figure out what is best for you!