Despite the stock market plummeting causing an economic downturn, there's a silver lining that you maybe able to benefit from.
As of late, the Feds have slashed interest rates to nearly 0. Now, let's talk about how you can take advantage of this current situation.
3 Ways to Take Advantage of the Low-Interest Rates Due to Coronavirus
Yes, believe it or not, even with the stock market dropping in numbers daily, there is a silver lining.
It’s real estate. The federal government has already cut interest rates but they’re expected to drop even further.
With that said, three big options come to mind:
Refinancing Your Vacation Rental
If you have a vacation rental and still have a mortgage on it, look into refinancing. Refinancing your home will lower your mortgage rates, which in turn, will allow you to pay off your mortgage quicker and put more profit in your pocket.
Buying a Second Home as a Vacation Rental
If you have the money, it may be very wise for you to invest in a second home and turn it into a vacation rental. Again, because interest rates are low, you’ll be able to pay off the mortgage faster and put more profit in your pocket quicker.
PRO TIP: When buying a second home with the idea of making it into an Airbnb, you have to have that mentality of that when purchasing one. The Real Estate Investor's Guide to Vacation Rental Profits can help you along the way.
Under both of these options, you may also be able to afford to drop your rates, which will give you more competitive pricing on your rental. This will give you an advantage against your competitors and, hopefully, get you more bookings.
Invest in the Vacation Rental Income Fund
If you'd rather not have a vacation rental business but would still love to make money off of this billion-dollar industry, then invest in the Vacation Rental Income Fund.
Our very own Elizabeth Carson Ellington will be managing this fund of over 40 vacation rentals in the hottest Airbnb markets in the country. When people cannot travel to Europe or exotic ports, they will drive locally and rent a vacation rental. This even happens during economic downturns.
If you are interested, you have to be an accredited investor and the minimum initial investment is $100,000. All details are on the fund's website.
A Few Final Thoughts on Marketing Your Vacation Rental During the Coronavirus Outbreak
Marketing Ideas for Your Airbnb During the Coronavirus Pandemic:
Additionally, a good idea for a welcome basket for your guests during this time may be a basket filled with a bunch of oranges and hand sanitizer.
All in all, check your finances, contact us with questions or if you have an interest in getting into the vacation rental market through our fund.