Renting cottages to foriegners?

zacb · Post by **zacb** » September 9th, 2012, 7:03 pm

So here is how my mind works: I was riding with someone through a berg herw in Northern Michigan (I live in a nearby town). So my idwa is this: I can buy land on the water for less than 3000 dollars. What if instead of renting it to an intranational person, why not try marketing to international markets? I could see this being an idea in Traversw City area and Northeast part of Michigan, Minnesota, and Canada, assuming land prices are reasonable. So what do you think? Good or bad idea for future consideration?

Jester · Post by **Jester** » September 9th, 2012, 10:38 pm

I would think foreigners want a property that's ready to move into. Like a condo with security and covered gated parking, in a nice city that they have heard of.

Or a boating retreat / fishing retreat, cottage already built and furnished, in a community with security, again so they could lock and leave for months at a time.

Or else one priced at $500,000 or more, in a city, so they can get residency.

zacb · Post by **zacb** » September 10th, 2012, 8:05 am

I was talking about short term rentals, like the ones for a weekend or so (not unlike time shares). I was taking more about vacation cottages, not "rentals" per se. Should have rephrased that.

Teal Lantern · Post by **Teal Lantern** » September 10th, 2012, 4:31 pm

zacb wrote:I was talking about short term rentals, like the ones for a weekend or so (not unlike time shares). I was taking more about vacation cottages, not "rentals" per se. Should have rephrased that.

Looks like tourism is a key industry in that area.
If hunting or fishing is also nearby, it could certainly work.
I'm guessing you have an angle that makes your cottage more appealing than other lodging in the area.
As for land prices, check national and local RE sites. Two similar and close pieces of land can be very different in price.

Only you will be able to run all the numbers and decide if the hassle is worth it.

zacb · Post by **zacb** » September 10th, 2012, 8:16 pm

My advantage would be.on the marketing side. If you could get either someone from an emrging economy with a great deal of wealth, or leverage currency differentials and use the inexpense of the expierence as a calling card, not disimilar foriegn countries pull Americans abroad with their value.