Big Bear Vacation Rentals as an Investment?

 

by Jim Gordon – January 1, 2013   Buyers agent for the Bob Angilella Team

 What makes the best Big Bear real estate  investment for a Vacation Rental property in Big Bear?  In talking with the Top Management Companies in Big Bear they all come to the same conclusions;

1.     Location:        In today’s market your Big Bear property needs to be located between in Big Bear West, Central or East, Moonridge or Fox Farm. While you are able to rent further east in the Big Bear Valley (Big Bear City)  they do not get the number of nights that these other areas do.

 2.    Amenities:      Renters don’t care what you paid for a property just what’s in it for them. Flat screen TV’s to an outdoor Spa. Room for a Pool Table or other game table is huge plus to the bottom line.

3.   Appearance:   Does it feel like a Big Bear Cabin?  The reason renters come up for a weekend is to get away. They want their Big Bear property to feel like a cabin in the Mountains

A typical scenario for a 3 bedroom 2 bath home in Moonridge with a Spa and Pool Table would be as follows:

80 nights a year, Average per night rental of $300 per night. (This rate per night will be higher during the Holiday periods and lower during the Summer months when the demand is not as high.)

Average Gross Rental of $24,000 for the year.  The Management Company will then keep 25% – 35% leaving a Net to the Owner before utilities, snowplowing insurance and mortgage of about $16,800.  With home prices now at their lowest levels in over 10 years and Mortgage Rates still hovering at 3.5% fixed.  

Purchasing a second home in Big Bear as an investment is something to think about in the New Year.  Also, a Big Bear second home investment would give you good tax incentives and tax write-offs. Give us a call or contact us to further discuss purchasing an investment home in Big Bear.  Thank you.

Jim Gordon  - Buyers agent for the Bob Angilella Team

Contact Jim direct @  Jimsellsbigbear@msn.com 

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