Podcast Do vacation rentals make a good investment? This is a question you see occasionally cropping up on the investor websites such as Bigger Pockets, and is invariably answered in the negative. The argument is that they are too time-consuming, are way more involved to set up than a traditional residential rental, and don’t have consistent cash-flow. However, there are many vacation rental owners who consider themselves to be investors and see the process in a different way. Michael Hamilton is one of these. He was my guest on VRS170 when he talked about his properties in San Diego and South Carolina; how he has renovated them to bring the highest return and why Airbnb is his favoured platform for marketing. In today’s episode Michael helps me understand more about the principles of vacation rental investment. He explains why it’s important to define the type of investor you are before you make your purchasing decision and why you need to start with the end in mind. Michael offers a detailed 7-point investment plan that covers market knowledge, financial analysis, and how to develop systems to remove yourself from working in the business so you can spend more time ‘on it’. If you are considering investing for the first time in vacation rental real estate, this is a brief but concise strategic and operational tour through the steps to be successful. And if you are already in the business, and thinking about your next property, you’ll find it equally valuable. In this episode you’ll hear about: How not to get on over your head Evaluating your money ‘mindset’ The ways to look at it in the long term How to find the intimate market knowledge so you can laser focus on location Evaluating cash flow, returns, and upside potential Ways to identify potential investment opportunities The basics of a vacation rental investment plan Reducing and eliminating ‘time for money’ work Enjoyed this episode? Be sure to listen to Part 1 > VRS170 Are you struggling to put all of the pieces together for your Vacation Rental Business? CHECK OUT THE VACATION RENTAL MASTER PLAN!Learn how to build a blueprint for operations, bookings, and marketing! Bring all of your pieces together with ease!