Understanding ROI: What Every Vacation Home Investor Should Know
Buying a vacation home is exciting, no question about it. The idea of a personal getaway, an income-generating property, or even a future legacy asset has a magnetic pull. But the thrill fades quickly if the numbers don’t add up. ROI, return on investment, isn’t just a financial buzzword; it’s the compass every serious investor needs. It tells you whether a property is going to pay off or quietly drain your resources. If you’re serious about building wealth in real estate, understanding ROI is the first step in any vacation home investment . What Shapes ROI in Vacation Properties? Location can make or break a property. A quiet mountain cabin might sound perfect, but if no one’s visiting that region, the calendar won’t fill. Contrast that with a beachfront condo near restaurants and attractions, and suddenly, you’re talking steady bookings, premium rates, and seasonal spikes that can cover a slow month or two. Seasonality matters too. Peak weeks can carry a property through months o...