How to Choose the Right Vacation Home Investment in Washington State

By Mel & Zack Durham, Your Local Real Estate Experts in Olympia, WA

Summer is around the corner, and if you’ve been dreaming about owning a vacation home in the beautiful Pacific Northwest, now might be the perfect time to make it a reality. As local real estate agents here in Olympia, we’ve helped many clients find vacation homes that not only serve as seasonal escapes—but also smart investments.

Whether you’re looking for a peaceful cabin near the Puget Sound, a rental-ready beach home on the coast, or a lakeside retreat in the Cascades, here are six key factors to help you choose the right vacation home investment:

1. Know Your “Why”

Start by defining your primary goal. Are you buying for personal enjoyment, future retirement, or rental income? A home you plan to live in later may need different features than one used mainly as a short-term rental. Be clear about your purpose from the start—it will guide every decision from location to layout.

2. Location Is Everything

Vacation rentals are all about experience—and Washington has no shortage of incredible settings:

• Waterfront access (think Hood Canal, Lake Cushman, or Ocean Shores)

• Mountain proximity (like Packwood near Mt. Rainier)

• Charming towns (like Seabrook, Port Townsend, or our own Olympia)

Look for areas with strong seasonal appeal, year-round recreation, and proximity to tourist attractions. Bonus points if there are limited lodging options nearby—that’s great for short-term rental demand.

3. Understand Local Regulations

Before you fall in love with a property, check the local zoning laws and short-term rental ordinances. Some cities or counties in Washington restrict or regulate vacation rentals (Airbnb/VRBO). You’ll also want to know about HOA rules if the home is part of a community.

Pro tip: We help our clients navigate these restrictions early in the process to avoid costly surprises.

4. Run the Numbers Like a Business

If income is a priority, treat this like an investment:

• Estimate occupancy rates in the area

• Research seasonal rental pricing

• Calculate maintenance, utilities, insurance, and property management fees

• Plan for vacancy months and off-season slowdowns

We can connect you with tools and local data to forecast your return on investment and avoid overly optimistic projections.

5. Choose a Property That’s Easy to Manage

Homes that are low-maintenance and move-in ready typically perform better as vacation rentals. Features like durable flooring, updated appliances, and simple landscaping are a plus. Also consider access—if the home is remote or in a heavy snowfall zone, property management becomes trickier.

6. Think Long-Term Resale Value

Even if you’re not planning to sell for years, choose a property with features that will stay in demand: good bones, desirable location, outdoor space, and modern updates. The more versatile and livable the space, the more valuable it’ll be down the road.

Final Thoughts from Mel & Zack

Owning a vacation home is both a lifestyle upgrade and a strategic investment. It can generate passive income, build long-term equity, and give you a getaway of your own in one of the most beautiful corners of the country.

If you’re considering buying a vacation property in Olympia or beyond, we’d love to guide you through it—from picking the perfect spot to helping you make a smart investment decision.

👉 Let’s talk about your goals and map out the best options.

Warmly, Mel & Zack Durham Your Real Estate Team in Olympia, WA 📞 360.481.2073 🌐www.melandzackdurham.com