Washington State recreational property thoughts?

[magoomba]

We live in Vancouver.
Recently wife and I have been discussing about possibly purchasing a recreational property south of the border.
Yes, I am aware of the fact that one could easily get a hotel off Priceline for cheap each time we venture down.
However, we`re not interested in staying at hotels. This would be more like a cottage or retreat. We want to be able
to furnish it ourselves and have all the comforts of home. Just getting away from the city.

It seems you can get way more for your dollar down south than within 2/3 hrs of Vancouver.
Because we would not be using it enough to justify the purchase, we would look at renting it out for the days/weeks
when we are not using it.
I`ve been looking at some of these vacation rental websites and weekly stays in lakefront homes go for about $3000/week.
Prices are maybe in the $400s and up. We`d look at putting down 20 to 25%.
With rents like this, it would appear on first glance that one can make the entire year`s mortgage payments simply by
renting it out for the 3 summer months.

My request for feedback is around the viability of such a purchase.
What are the pitfalls around recreational properties? What else am I forgetting?
How does such a purchase compare with something in say Sunshine Coast or Whistler?

Much thanks.

 

[Thomas Beyer]

QUOTE (magoomba @ Jun 24 2010, 04:33 PM) ...
With rents like this, it would appear on first glance that one can make the entire year`s mortgage payments simply by
renting it out for the 3 summer months.
but aren`t those the months that you would go yourself ? Who wants to go to a cold lake in WA in November ?

Assume you go when others go too ! .. Can you afford the upkeep and mortgage costs ? Do you ALWAYS want to go to the same place ? if yes to both .. then why not ?

Consider Pt. Roberts too ..

QUOTE (magoomba @ Jun 24 2010, 04:33 PM) ... ...My request for feedback is around the viability of such a purchase.
Depends on your income. It`s like a new BMW for 60K. Not necessary and not a great investment .. but a nice toy/lifestyle .. great for enjoyment !

QUOTE (magoomba @ Jun 24 2010, 04:33 PM) ... ...What are the pitfalls around recreational properties? What else am I forgetting?
Assets come with liabilities: taxes, mortgages, upkeep, leaky roofs, squirrels in the house, rotting pipes, stolen TVs, .. and guilt when flying to Hawaii as you could have gone to the cottage in November "for free" !!

btw: Hawaii is nicer than WA or BC in November !

QUOTE (magoomba @ Jun 24 2010, 04:33 PM) ...How does such a purchase compare with something in say Sunshine Coast or Whistler?

Same issues .. different location and no exchange rate issues !

Once you own it and it is furnished and it is sunny .. drop me an e-mail and I`ll come for a visit and bring a bottle of wine .. my idea of a 2nd home !!

 

[magoomba]

otooQUOTE (ThomasBeyer @ Jun 24 2010, 05:17 PM) but aren`t those the months that you would go yourself ? Who wants to go to a cold lake in WA in November ?

Assume you go when others go too ! .. Can you afford the upkeep and mortgage costs ? Do you ALWAYS want to go to the same place ? if yes to both .. then why not ?

Consider Pt. Roberts too ..


Depends on your income. It`s like a new BMW for 60K. Not necessary and not a great investment .. but a nice toy/lifestyle .. great for enjoyment !


Assets come with liabilities: taxes, mortgages, upkeep, leaky roofs, squirrels in the house, rotting pipes, stolen TVs, .. and guilt when flying to Hawaii as you could have gone to the cottage in November "for free" !!

btw: Hawaii is nicer than WA or BC in November !



Same issues .. different location and no exchange rate issues !

Once you own it and it is furnished and it is sunny .. drop me an e-mail and I`ll come for a visit and bring a bottle of wine .. my idea of a 2nd home !!

Thomas, good points.

Ya, we would go to the lakefront even in the fall and winter.
It would be more or less a second home away from the city.
My line of work allows me to do a lot of my job from home and the family has Nexus.

Regarding the upkeep and mortgage costs... that`s specifically where I`m looking for feedback.
Obviously we are looking for some or all of this to be covered by the rentals.
Do the rent numbers look to high or is it pie in the sky.
We`re pretty good an analyzing properties for pure investment, but when it involves personal use,
then I don`t feel so confident anymore.
I don`t know how to do the research for recreational properties.
Where can you find accurate rent and vacancy info?
Is there a REIN spreadsheet? =)

Point Roberts is nice, but I don`t like the fact that it`s not connected to the rest of the US.
Income is not a problem, but having an asset that is not fully utilized for half a year is wasteful.

We`ve been to Hawaii. It was fine when it was just the two of us. Now with the kids, they are full price
airfare and do not take sitting down in a plane for 5 hrs very well. Not to mention the fiasco called
airport screening and waiting game on the tarmack.
We figure most of our vacations for the next few years is going to be car trips anyway.

Can other people on the forums speak of their experience on owning a second home that is rented out
for parts of the year? Would you do it again if you could start over? Would you pick a different location?
Etc.

Thanks.

 

[westboundventures]

QUOTE (magoomba @ Jun 24 2010, 04:33 PM) How does such a purchase compare with something in say Sunshine Coast or Whistler?

Much thanks.

I can`t comment on the viability of this kind of purchase in Washington state since I have no experience, but I can comment specifically on Whistler since I invest there.

In Whistler, if you pick the right property, you can cover almost all of your costs (including mortgage) by renting the property for 5-6 months during the winter season (5-6 month winter season lease, NOT nightly/weekly rentals). This strategy works GREAT if you are primarily looking for a spring-summer-fall recreation property and don`t care too much for skiing. Whistler is fantastic during the warmer months and actually has WAY more to do than in the winter.

I`d be happy to help you if you`re interested in Whistler.