Purchasing A Vacation Home For Cheap
Most homeowners think to achieve the American dream of buying a home is with conventional loans of putting 20% down of the purchase. With an increase of debt for millennials due to student loans, it is harder for this generation to set money aside to put 20% down on their primary residence let alone a vacation home. Millennials are constantly trying to find ways for multiple streams of income. While they often go for side hustles, this requires them to work up to 80+ hours a week between their full-time job and their side hustle. Dedicating so much time leads to quicker burnout, stress, and depression. Everyone has heard the phrase, “Work Smarter, Not Harder”.
What does that mean? This is the easiest way to literally make money while you sleep. You are only working your full-time job and letting the side hustle work for itself. One of the most common passive incomes is vacation rentals. Don’t have 20% down for a $250,000 vacation home? No problem. Real estate investors have given us the secret. Investors are able to acquire properties like vacation homes for almost no money down. How do they do this?
Real Estate Investors
Simple. They go to the courthouse in the county where they are looking to buy investment properties. Investors can acquire public records where they find homeowners who are having problems with their properties. This could be pre-foreclosure which is the most common or they could be going through a divorce. Either way, these homeowners are most likely going to lose their property and destroy their credit scores. It is very hard to get a foreclosure off of your credit report.
“Subject To” Mortgage
To avoid this, homeowners are approached by investors who will offer to take over their monthly mortgage payments. This is called a “Subject To” mortgage. They offer to catch the homeowner up on their payments while the homeowner will transfer legal title to the investor. The mortgage will still remain the homeowner’s name so you don’t have to worry about the approval process and down payment that most go through when applying for a conventional loan. The lender is never involved. Once the mortgage is paid off, the investor assumes the property fully.
Own A Vacation Home
If you’re interested in using this approach for passive income, we recommend meeting up with local investors or can go over in more detail how this process works. Why work a side hustle that keeps you from sleep, stresses you out, and keeps you from making the money you feel you deserve? It’s time to own a vacation home so you can get further ahead financially.
As you can see, we are extremely active with our marketing efforts. We would love to have the opportunity to manage and market your vacation home. Last year, we did not have one vacation home occupied less than 220 nights and our average vacation home was occupied 248 nights annually…that is over 20 nights a month! Check out more of our Orlando Vacation Property Management Tips.