How a vacation home turns into a nightmare

The Wall Street Journal did an article on a tech executive named John Foreman. He built a five bedroom, mountain modern home in Black Mountain, North Carolina which is 20 minutes from Asheville. The property was originally planned to be the primary residence, but his job changed from Atlanta to Utah. So he listed the property on AirBnB for $1,000 a night. Sounds great right? Well no.
Even though he was able to bring in $250,000 a year in revenue in 2022, that only left him with $80,000 in profit after expenses. However, as things break over time, and for tax reasons, this profit might decline over the years.
The issue is running the place. Even if you have a management firm running things, there are still things you might have to get involved in like the home warranty from the builder when things break.
A job change can quickly make your vacation home into a nightmare.
If we look at the house on Zillow. We see it is $3.75 million. I can tell you this house is not worth that much money. There are nicer house in that area for $2 million. Also, I’m not sure this is the location for an almost $4 million house. I’m surprised he is able to rent it two third of the year at $1,000 a night.
Works Cited:
https://www.wsj.com/articles/buying-a-vacation-home-832c8c08?mod=hp_major_pos1#cxrecs_s
https://www.zillow.com/homedetails/6-Oak-Ridge-Trl-Black-Mountain-NC-28711/96323438_zpid/
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