Buying real estate can be a lucrative business, but it is risky. The market fluctuates, tenants may not pay dependably, and cash flow can be a struggle. First time real estate investors may want to go big with their investment, but many of us would struggle to make multiple mortgage payments. This risk is lessened when buying a vacation rental in Scottsdale, AZ.

Why Buy a Vacation Rental?

  • The best reason to buy a vacation rental instead of a long-term rental property is because you can use it! It can also be your second home you visit when you need to get away from the toils of life.
  • It’s a side hustle! Yes, you can have a second home and have other people pay for it. You aren’t going to use it all the time, so why not have it make its own money on the side?
  • The property will likely appreciate. Over time, most properties do become more valuable. Add any improvements, and it will appreciate that much more. This way, if you have to sell it, you’ll end up with a profit.
  • Options. There are many options for managing vacation rentals. If you don’t want to do it yourself, you can hire a vacations rental management service. This allows you to do practically nothing and watch your mortgage, insurance, and repairs pay for themselves through rental income.

Why Buy a Vacation Rental in Scottsdale?

It is important to buy a vacation rental in an area that is rated highly for the tourism industry. Scottsdale is definitely rated as a good place for vacation rentals. The hiking opportunities, proximity to Phoenix, Old Town, clubs, spas, and swimming pools (not to mention the weather!) make this one hot spot for tourism.

According to Mashvisor, Scottsdale had 4.5 million tourists there for overnight visits bringing 2.4 billion dollars for the city in 2017. Rental rates averaged $2,788 but were much higher at $3,308 in South Scottsdale.

Vacation rentals are good investments in Scottsdale because of the tourism, but they are also good investments because they make a good amount of money for the investor without a lot of work or risk. Tourism isn’t leaving the Scottsdale market, and many people enjoy the comfort of staying in a home rather than a hotel, so they can truly have the luxury of a home during vacation without the upkeep. Hire a vacation rental management service, and when it comes time for your vacation, you won’t even know they were there.