March 12th, 2010 | 
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Is it profitable to buy a condo next to a ski resort and rent it weekly?
My family just rented a condo next to a resort in New Hampshire for 1200.00 a week. This area has tourist attractions for families all year round. It seems like a no brainer but its 4hrs. from home and well its a risk too.
It all depends on the price you pay for it. Any house can be profitable if you buy it at the right price. And any house can be a sink hole if you buy it for the wrong price. The easiest way to judge whether it will be profitable or not is the 1% factor. Look at the purchase price, and then multiply it by 1%. If the rent for that type/size property is higher in the area you are buying into – then you can expect to see positive income.
Ex. Since condos in the area rent for $1200 a week (i.e. $4800 a month) so the property you are buying needs to be less than $480,000. Of course, this assumes a 100% rental rate (i.e. no vacancy periods). Positive income means anything above the mortgage, taxes, insurance, and property manager fees.
CIMG2555 KLCC 2 Hampshire psn Hampshire, off jln Ampang
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Four Night Summer Trip*New Hampshire Resort Condo for 4 $270.00 |
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TWO NIGHT Ski Trip**New Hampshire Resort Condo sleeps 4 $150.00 |
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