Usage of Your Resort Investment Property
I like to say that we have to own the properties where we like to vacation because we would never be able to afford to stay there! For example, a hotel room at The Kahala Hotel next to our Hawaii condo rents for about $400 per night…and it’s only a small room.
I can buy the place next door with the same cool beach (minus the pool attendants and room service, of course) and stay there in a two bedroom place…and it’s a tax write-off.
But, I have a strict policy about usage. We never use our resort investment properties unless no one else is. If, and only if, there are no paying customers, will we consider using our condo in Hawaii or any of the other places where we own homes.
We are not rich, but we are building wealth through real estate. Therefore, we do not get to vacation like the rich when the rich vacation. There is no ski usage or beach usage (or any usage) during the Christmas holidays, long weekends, Spring Break, President’s Day or any of the many holidays when other people want to pay us to use our places.
The beauty of this is that we can stay at home or we can go somewhere completely different…like a cruise…or to Europe when no one else is going. We put our properties to work for us and let them work, using them only when no one else wants them. In Hawaii, that turns out to be June or July, which is perfect for us. For our places in Tahoe, we would go mid-week or Springtime when others aren’t clamoring to get there.
The basic rule of investment usage is “don’t use”, cash the checks and wait for the time no one wants to pay.