Current Big Bear Lake Vacation Home Investment Strategy-April 2009

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How buying and owning a 2nd home investment property in  Big  Bear can be the best investment for you and your family!!!

Purchasing  a vacation home in Big Bear Lake market offers many unique and rare opportunities to the investor. When an investor  purchases  a 2nd home in  at the mountain  resort of  Big Bear Lake he may be able to rent the property  as a vacation rental when the property is not being occupied.

In other words, the property is listed with a vacation rental company in Big Bear Lake and  when the owner is not occupying the property  for personal use then the property can be rented by the rental company. Recently in 2008-2009 about 1/3  of the purchases in Big Bear Lake , (including Moonridge) were vacation homes. Depending upon the size, location, style of the home or cabin, the daily rate is between $125-500 dollars per night, with a minimum 2 night stay.
Owners can then use this this income to help pay for the mortgage, utilities and taxes and yet receive the pleasure of owning and using the vacation home for personal use here in the beautiful San Bernardino Mountains. The usual charge for renting by the rental company is between 25-32% of the daily rent per night. And of course this may be all tax deductible depending on the owner circumstance.
For those interested in purchasing a vacation rental in Big Bear City, Sugarloaf, Fawnskin, Whispering Forest and Erwin Lake, be prepared to have only a limited number of rentals per year because almost all vacation homes are rented  first in the City of Big Bear Lake (Big Bear Lake West, Big Bear Lake Central, Big Bear Lake East, Moonridge, Fox Farm, Castle Glen, Summit Estate, Eagle Point, Village, and Eagle Knoll Estates).

Usually for the first year an owner can realize about 70-90 nights a year rented, as this number depends on the company chosen, location of the home, style of the home and size of the home.

Overall with all these factors,  owning a vacation home may not be for everyone but if you do decide this route remember your are purchasing a home in a 4 season resort playground that you and your family can truly enjoy all year and yet receive income throughout the same year…

For more information about owning a vacation home in Big Bear contact me and check out my next blog describing the best vacation homes in Big Bear California to buy .

Danny Dominguez

Boulder Bay Real Estate