No. of Recommendations: 0
SP's post reminded me of the approach I took when looking at the financials of buying a vacation home for part year use. I added up all the cash needed to buy and furnish the property, then looked at what sort of return I could get if I kept that money invested instead of cashing out to buy. Then I looked at how many months I could rent with the income on that invested money. When you add in the utilities, which you don't pay as a renter, the alternative value of keeping your capital and just renting instead with the income was very attractive, particularly with off season use which tends to be much cheaper.

That said we did just buy a second home, a city companion 2 hours away from our very rural vacation home. We figure we will be bopping back and forth between the two homes pretty regularly either when the river is up which makes kayaking tough or we would like to catch a jazz band and a meal out or have a doctor's appointment. We may or may not wind up renting it out on AirBnB from time to time, but right now I am more focused on getting the place ready to move into than what we might do. We use fully managed long term rental as our alternative use when we run a spread sheet. If I get hit by a bus there is no way DH would want to manage anything.

IP
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