I am convinced that every RE investor needs a vacation home. We bought a distressed double-wide(5 bedroom, 3 bath) in 2008. We started taking weekends and fixing the place up, mostly fun and some work. It is in a great summer and winter destination in the mountains, close to 2 ski resorts. It now has rented(short stays) this year 119 days and counting. Should hit at least 130 days. The rent pays all the expenses, plus last year about a 5% return on my investment. It is currently worth 150% of what I have in it.
We just came back from a 4 day Labor day weekend trip. My wife’s family, our kids, grandkids. Wow, what fun.
I could sell it and buy other rentals and make more money, but when I take my kids and grandkids skiing and other family on vacation to our home, it is priceless.
The first vacation place I bought was a house near the ocean. It was a foreclosure and needed a bunch of work, the grass was uncut for maybe a year or more, there was tons of trash in the house and the yard, and everything needed painted inside and outside. It was unlivable and for the first few times that I went there, I needed to stay in a no-name cheapo motel. A friend an I spent most of the Memorial Day weekend under the house replacing all the plumbing. We would work starting every morning after breakfast and work all day until dark, then get dinner and go back to the motel, then get up the next day and do it all over again. Just like Groundhog Day. The whole weekend and I never did even see the ocean, let alone swim in it or lay on the beach. Even after getting livable, which took a few more motel stays, there was still heat, electrical service, hot water and roof issues to resolve and more.
But the greatest benefit is the ability to go to the beach on a moment notice and having a place of my own and not needing to get motel/condo reservations. Friends and family have also enjoyed the house, and its been an opportunity to get together with some people who I rarely see.