Owners of vacation rentals

Parents Forum Parent Cafe
41

We do love the freedom. One of our other options is living on the road (or water) full time. We could make that less than full time if we owned land based properties (at least one), but would want it to somewhat pay for itself instead of just being a money sink.

We aren’t attached to much in “things,” and I’ve heard from others that you can’t be with rentals because everything and anything can “walk off.”

I like this idea TBH. Keep two as rentals and one as “ours,” even if we stay in the other two when we want to. It’s suggestions like this (and some others above) that show how beneficial it is to have outsider input.

Fortunately, one son is a doctor with a lot of connections. We didn’t “plan it” that way, but it sure works out nicely for us.

We’ve had various issues with AirBnB too, so I know what you’re saying about those. It’s too bad “renters” can’t be better classified so owners could know. I know there are renter reviews, but I also know owners don’t always like telling the truth.

Nothing unpaid about it, and yes, our kids are in on it and in favor of our thoughts. If they weren’t, we wouldn’t have progressed this far. We would be within half an hour of the northern two (closer for my cousin) and the PR place would have a property manager.

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42

We were just talking about the need to have cameras outside - good suggestion on the thermostat too - thanks!

43

How about a motor home instead of actual property? And great campgrounds in those Great Lakes areas (2) you like? Then Puerto Rico in the winter months. Maybe not feasible but thought I’d throw it out there since nature is part of your MO is seems!

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44

We have thought about it, but I dislike large RVs and we want room for the grandkids. Waterfront places with a yard are our preference - along with a dock or close to a marina for H. In PR it would be a condo, but one with things for the grandkids.

If we get an RV it will be a Class B or B+ so I’m not driving a behemoth on the road.

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Class B RVs are usually quite expensive and much smaller (but perhaps that’s what you want.)

Class R RVs are often on an F-350 chassis, and I’ve personally found them very easy to drive. We rented a 31’ (the biggest yet). The problem was it didn’t have a rear camera (!), but other than that, it was perfect. Plus, you can tow a smaller car, so that you have additional transport besides the RV.

We’ve rented smaller ones, and the 28’ is great. Can sleep 6-7 and with slide-outs, you can have a decent amount of room

On waterfront property, and not to be too much of a climate alarmist, but I would be very careful about this with increasing rising sea levels that will only get worse. Just be careful where you might buy waterfront property and check the long-range issues about sea levels.

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This is what we want. Sleeps two (maybe three) and a bathroom with small cooking facilities. That’s it. If we tow anything it will be H’s small sailboat (a vintage Lightning Racer).

Great Lakes for two of the three. Sea level rise won’t mean a thing. Access to a terrific fresh water source in the future could be a great thing. Fresh water is also much nicer than salt when it comes to deterioration, but ice can be a factor.

In PR we will be wary for hurricanes and more.

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47

I know it’s not the same Great Lake, but our beach cottage and it’s community on Lake Huron has VERY much been affected by lake levels. Some really intense beach erosion and loss of property.

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48

These lakes (and the St Lawrence) have had that too over the past few years. Fortunately most have put up impressive sea walls. It’s still not the same as the ocean rising fortunately.

49

I know this isn’t rental property related, but is about your situation.

  1. Are you certain your kids won’t move?

  2. How old are you? (That’s rhetorical!). But really, you should be factoring in your old age. At some point you will be unable to travel between three places. Consider an arrangement that won’t have to be radically changed when you are in your 80’s.

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50

re long-term illness, I was referring to if you have to stay in one location for an extended period of time to receive treatment, and all 3 places are rentals, you may have to forego a planned rental season (loss of revenue) and cancel already booked rentals (which will really bring the bad reviews!) If your S has a network of physicians and medical resources to tap into, then it would make sense to be health insured in that state and have that be a place that is less reliant, or not reliant on rentals. This comes to mind because my SIL was hit out of the blue with a devastating cancer diagnosis, and would in no way be able to live at different locations around the country - even after the initial treatment was finished. When the cancer came roaring back (which she knew it would per doctors) her decline was steady and dramatic over the course of a year. No one wants to think about things like this, but again, if it were me, I would weigh anything that could come down the pike before diving head first into the prospect of not having a primary, unrented home. Which of course I know you are doing!

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51

We looked into buying a vacation rental in another state when my husband needed to 1031 exchange a property. We learned that we could only use the rental a certain number of days a year. I’m not sure what if any rules apply to a rental if you plan to write off the expenses and depreciation. We ended up just buying another full time rental but we did fantasy for a short while about a condo in Hawaii.

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52

If they do, we could too. No move, to us, is permanent.

We’re ok with doing something else when we need to do something else. I’ve seen my mom and dad die (cancer/heart disease respectively) and H’s mom pass away (Alzheimers). Our take away has been, “Live now, while you still can.” All three told us that separately. The future will be whatever it will be, but we don’t want regrets from what we didn’t do.

Plus, we know couples in their 80s who still go around from campground to campground in their RV. Maybe we’ll be among them someday - or enjoying our properties. ps We’re in our latter 50s.

If this or anything similar were to happen, we’ve been assured by two of our boys and their spouses that we are welcome to stay with them for as long as necessary.

Our farm wouldn’t come under this, of course, but the rental property we still own was 1031’d and would be again I suspect. This is what I just found from a quick google search:

### Replacement property

1. The holding period following the exchange is at least 24 months;*
2. For each of the two-12-month periods, the vacation home is rented to another person at a fair rental for 14 days or more; and
3. The homeowner limits his use of the vacation home to not more than 14 days or 10% of the number of days during the 12-month period that the vacation home is rented at a fair rental value.

and

## AFTER BUYING A RENTAL HOME, HOW LONG DO I HAVE TO HOLD IT BEFORE I CAN MOVE INTO IT?

There is no designated amount of time that you must hold a property before converting its use, but the IRS will look at your intent. You must have had the intention to hold the property for investment purposes. This could include, but does not require, renting the property out at a fair market value. Since the government has twice proposed a required hold period of one year, we would recommend seasoning the property as investment for at least one year prior to moving into it. A final consideration on hold periods is the break between short- and long-term capital gains tax rates at the year mark.

Frequently Asked Questions (FAQs) About 1031 Exchanges.

Seems we ought to buy that property a year before fully implementing our plans which is good to know - definitely appreciate your thoughts!

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53

Are you sure you’re not meaning C-Class and E350? RVs based on the F platform (Super Duty) are exceedingly rare.

54

Sorry, your right on the Class “C”, not X! Too fast with my typing and not proofing.

And I think you’re right too on the E350, not F-350.

My bad.

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55

You can also get moisture monitors that you can access remotely. Not that you can do anything yourself (not like turning up the thermostat) if you’re hundreds or thousands of miles away, but you could call somebody to go around and check it out and see if there was a leak.

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56

We have a Class B camper van that is 19 ft long and self contained with bed, bath, and kitchen. It can be parked in a regular car parking spot, so no need for an extra vehicle. I consider it our roaming cabin.

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57

That’s exactly what I’m hoping to get. A tent with wheels, a bathroom, and basic cooking. We loved tent camping, but we’re getting older.

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58

So I’m confused - maybe I missed something- are you looking at properties AND a small RV?

59

The small RV is happening. We’re going to use it for next year’s eclipse and replacing our tent camping.

The properties might happen if we opt to sell our farm wanting to be closer to our kids while still snowbirding.

For now, the farm is home base while we travel. H works partially remotely, but we’re traveling more and at the farm less as it is. When he retires within the next year or so barring an economic collapse, we have to figure out what we want to do. The kids say they don’t want the farm.

We’d also love to just travel 24/7 and H loves the water, so a boat might come in there somewhere.

It makes sense to own rental properties near the kids that we can use if renting can help pay for them - meaning putting a bit of our retirement income into them.

The RV can be rented when we’re not using it. A boat not so much.

Do we buy properties or just travel, with or without keeping a home base, and if so, where? We’re not sure. This thread is to get folks’ pros and cons of that option for us to consider.

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60

Our cabin in the Maine mountains is in the path of the eclipse. :slight_smile: That’s where we’ll be, if we can get through the melting snow (snowmobiling is kind of iffy in April).

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