fbr vacation rental investment properties
Vacation home rentals have experienced a surge in popularity and profitability in recent years. However, managing short-term rentals requires active involvement due to high renter turnover. Finding new renters, overseeing check-ins, cleaning, and restocking essentials for each guest can be time-consuming for individual investors. At FBR Investment Fund, we offer a unique opportunity to invest passively in vacation properties while our team of experts handles all marketing and management tasks on your behalf.
These vacation rentals are particularly appealing to investors seeking both cash flow from short-term rental income and long-term appreciation growth. By pooling funds from multiple investors, FBR Investment Fund allows you to own a share of desirable luxury vacation properties without the financial burden of funding an entire property yourself. This accessibility opens up high-value real estate investments to a wider range of individuals.
The Phoenix area has “vacation hot spot” locations (i.e. Scottsdale), which attract numerous tourists who prefer the privacy and comfort of a luxury private residence over a traditional hotel during their stays. Consequently, luxury vacation rental properties in these areas experience consistently high demand and limited supply, leading to increased rental rates and property values year after year.
benefits of investing in FBR's vacation home rentals
Desirable Properties w/ Strong Tenant Demand:
Luxury vacation homes in prime locations have been steadily growing in popularity, ensuring a steady stream of potential renters.
Strong Cash Flow.
Nightly, weekly, or monthly rental income covers property expenses and provides ongoing returns.
Property Appreciation.
The value of vacation properties tends to appreciate over time, allowing investors to benefit from capital gains.
Tax Benefits.
Certain holding costs associated with our vacation home rental investments are tax-deductible, reducing your tax burden.
Ownership of Luxury Real Estate in Prime Markets.
FBR Investment Fund offers ownership stakes in luxury homes with strong vacation rental performance and returns.
The fbr vacation home rental process
Investing in vacation home rentals through FBR Investment Fund not only allows you to tap into this lucrative market, it also provides a hassle-free and passive investment experience. Let our team handle the marketing, management, and operational aspects while you enjoy the financial rewards and the ownership of prime location real estate.
Our vacation home rentals are strategically located in central areas that attract short-term renters. Our team of experienced real estate analysts carefully selects properties in close proximity to shopping, beaches, entertainment venues, restaurants and more.
We specifically focus on prime locations within the Greater Phoenix/Scottsdale area that have favorable regulations for short-term rentals. Our target range for homes is in the $1.5 – $2 million range, as these properties have demonstrated better overall performance compared to other property ranges.
Consistency is key for us. Instead of relying on seasonal spikes in demand, we prioritize mature rental markets that offer more consistent occupancy rates and a steady rental income stream.
Our comprehensive short-term rental vetting process involves conducting thorough market research, analyzing local comps, projecting rental income, estimating vacancy rates, evaluating neighborhood characteristics, and assessing the value-add potential of each property to ensure it meets our investment criteria.
Once we negotiate and close the purchase of a property, we proceed with a light renovation, fully furnish the home, and prepare it for guests. We may also explore value-add opportunities such as transforming a spare bedroom into a home theater or a gym, tailored to the preferences of the target audience in that specific location.
Our experienced team manages every aspect of the process from start to finish. We handle property acquisition, deal negotiation, financing, renovation supervision, property management oversight, and accounting services, including investor distributions, 1065 tax filings, and Schedule K-1’s.
The Flexibility to Sell Your Share Every Five Years
While our aim is to provide long-term passive income, value growth, and tax benefits to our investors, we understand the importance of flexibility. Therefore, we offer investors the option to sell their share in the property every five years.
Should you decide to sell, we will advertise your share for sale on our website, and new investors will have the opportunity to purchase it based on the property’s new appraised value. If you choose to continue the investment, you will continue to receive quarterly disbursements and benefit from additional property appreciation over time.
Depending on interest rates and appreciation growth, we may also refinance the property at that point to return the original investments back to our investors.
Time Frame and Investment Process
The vacation rental investment with FBR Investment Fund has a duration of five years, with the option to exit or continue the investment every five years thereafter.
The timeline begins on the day we open escrow for purchasing the property. It typically takes a few months to prepare the property for rental operations, and then we actively advertise the property to qualified vacation renters. As an investor with FBR Investment Fund, you will receive your share of rental income on a quarterly basis throughout the rental holding period.
Investor distributions are prorated based on the time of your investment in a specific project.
At the end of the initial five-year investment period, we will order a new property appraisal and provide you with projected financials for the next five-year hold period. You will have the opportunity to review these projections before deciding whether to sell your share or continue with the investment for another five-year rental holding.
Are you ready to embark on your vacation rental investment journey with FBR Investment Fund? Click on the ‘Get Started’ button below or Contact Us today to secure your passive income and wealth appreciation in the exciting vacation rental market.