The past two years have led to a new economic reality in the US: the evolving, work-related lifestyle in the post-pandemic economy—one where work is all about flexible hours and can be done away from the office, be it from home, the vicinity of your home (a coffeehouse, maybe?) or elsewhere! Employees have more flexibility on their hands regarding their working habits than they ever anticipated. They have been finding ways to spend this newly acquired flexibility for their benefit and for the use of their employers through increased productivity levels. An aspect that has attracted attention recently is that the option of "working from home" has allowed individuals to enjoy fresh air and quality time with friends and family in vacation-like settings without utilizing their vacation days. A new standard option for people who can work from home is spending time in what used to be considered "a vacation home," whether it be on the outskirts of town, at the beach, by a lake, or in a scenic area. You can come into work on time without ever having to commute, and as soon as your workday is over, you are in a "vacation setting." As to how this new trend impacts real estate, there seems to be a booming market as "vacation home" sales (or sale of houses in what we're up to a few years ago considered "vacation towns") continue to grow.
How Does the Real Estate Market Benefit from this?
There exist, at this juncture, clear opportunities for real estate investors: take advantage of investing in vacation rentals, whether a rental property or in a fix and flip scheme. As discussed recently, the fix and flip technique can be employed to locate distressed properties in suitable locations and flip them into aesthetic homes. Several properties in the typical vacation setting can be found in need of minor renovations and maintenance, which is why the fix and flip technique could be used here.
Location, location, location
The most crucial step of the fix and flip for a vacation home is, of course, hunting for a suitable location: one that has all the basic amenities and isn't too far away from the city hub. Individuals often prefer a peaceful and scenic setting in strict contrast to the city "noise"; for example, finding a place in the vicinity of Houston ─such as Lake Livingston, Kemah, or Galveston─ could prove fruitful. It is, however, essential to also be aware that whichever location is chosen, it must not be in a highly remote area; a gas station or grocery store must be at most a ten-minute drive away. And the location has to have excellent telecommunications infrastructure (mainly, telephone, Internet, great mobile reception) if you think that someone could "work from home" in this property.
It would help if you kept in mind that individuals would still like the security of knowing that they are not exceptionally far away from their homes or town and are nearby places that can provide the essential services. Security is another aspect you must investigate; the area surrounding your targeted fix and flip property should not be known for high crime rates.
Be Aware of Lumber Prices
A key aspect of which to be aware is that due to the increasing demand for more "work from home spaces" in vacation homes and residential housing, lumber and steel prices have skyrocketed. Hence, it is essential, before choosing your distressed property, to inspect the amount of renovation required and prepare a detailed budget.
A renovation strategy must be discussed with your repair crews to require the least amount of building materials to minimize costs for a more significant profit margin. Look out for structural damages, especially those that are irreversible. Inspect the architecture to ensure there are enough bathrooms and other necessary spaces (for example, is there enough space for one or two desks?) so that you don't have to carry out any extensive construction and/or additions.
How to Find the Right Financing?
It goes without saying that if you decide to invest in fixing and flipping a vacation home or just renting it out, you will require financing, especially that which can be available to you as soon as possible AND at a reasonable interest rate. Hence it would be best to look into serious hard money lenders, especially those who specifically offer to finance for vacation homes. AMI Lenders are Houston's fastest closers; they fund their loans and close the funding as fast as the law allows. They are a reliable source for financing your next fix and flip vacation home, one that you might want either for personal use or as a rental.
Conclusion
AMI Lenders offer hard money loans and the necessary assistance in evaluating suitable recreational areas near Houston. They offer competitive rates, which no other lender will be able to match. So, suppose you plan on locating a property in a Texas lake-shore or waterfront community and flipping it into a comfortable vacation home to spend your newly found flexibility or putting it up for rent for those interested in profiting from working from home at a vacation destination. In that case, you should approach AMI Lenders. They will be keen on financing your vacation second home or vacation rental!
Visit our website today and fill out an application for a private hard money loan in Houston.
For over 30 years, AMI Lenders have been providing financing options to individuals in the Houston area. If we aren't able to assist you, we'll be happy to direct you to someone who can.
Contact us for any questions or apply online!
