Good Morning, Sunshine
Imagine the sun beating down on your face early in the morning. The smell of freshly brewed coffee hits your nose, and you hear the sound of ocean waves hitting against one another. That sounds pretty appealing to us. You want to give your investment property tenants that experience, but how? By buying an income property in one of the best places to buy vacation rental property investments.
The Search for The Best Places to Buy Vacation Rental Property
You are in your venture to find the best places to buy vacation rental property investments, so what features will you look for? Mashvisor has comprised a small list of vacation rental property attributes to look for. These include:
Location, Location, Location
Due repetition here. Real estate location is absolutely crucial. Although we’ve made a nice little list of the best places to buy vacation rental property investments, you should understand location’s significance.
Related: The Best and the Worst Locations for Investment Properties
The location tells you everything: how much tourism you can expect in the area, how the weather will be, what is available near and far, how much convenience will it provide to your tenants, and more. Where your investment vacation homes are located will be an indicator of how successful it can grow to be.
Size-How Big or Small Are You Going
Now, this really depends on what you personally prefer and how much you can afford. The type of rental property you go for will result in different rental incomes. This is because depending on the area, you will have different demands of house sizes.
Some locations may have a higher demand for single-family homes, due to it being a family vacation hotspot. Other locations may have a higher demand for smaller apartments or multi-family homes that could accommodate 1-4 people, especially if the area is known to be popular with young millennials who rent on short-term rental platforms, like Airbnb.
Romantic Features
We like to use the word romance when it comes to investment properties because it’s warm. Everyone likes a little romance, so look for a property that fulfills that love and affection. Not literally, you know, metaphorically.
Does the rental property have a pool? Is there a big backyard? Would it be both kid and pet-friendly? No one wants to leave their furry friends at home. You don’t want a potential customer to pass up on your vacation rental home just because they don’t consider it pet-friendly. Romance matters and you get the idea of what that means with an investment property.
The Details
The best places to buy vacation rental property depend on the desirability of the location, their affordability, your expected return on investment, the local occupancy rates and the short-term market rental rates. Get your hands on a property investment in a place known to be a tourist area. Aim for locations that are not only near attractions but also have upside investment potential. Remember, eyes on the prize. The cash flow prize.
Little Tip When on Your Search for the Best Places to Buy Vacation Rental Property
Local occupancy rates of 70% or higher are a good rule of thumb when deciding where to buy a vacation rental property. Use your mind as a real estate investor. You can’t forget that vacation cities are seasonal. That means occupancy rates are likely to fluctuate throughout the year. Short-term market rent rates alike.
Related: 3 Tips for Maintaining a High Occupancy Rate on Your Rental Property
Consider the rents in the area and then figure out if you are able to afford the bills while still making a profit. Take into account when the property isn’t rented or if the rents fluctuate based on the seasons. This will prepare you for what is to come.
Another real estate investing tool you can use to better prepare yourself is Mashvisor’s property analysis calculator. We consider ourselves to be one of those necessities in real estate investing. We give you the numbers you need to get an idea of how prosperous your property investment can be.
Metrics like traditional and Airbnb occupancy rates, cash on cash return, cap rate, and return on investment, are only some of the real estate analytics we can provide you. Investing in real estate needs that extra mile in research. With Mashvisor, you’ll be more than prepared for what’s to come.
Related: 5 Tips on Researching Investment Properties
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.
The Best Places to Buy Vacation Rental Property Investments
Why Are These the Best Places to Buy Vacation Rental Property Investments
Let’s go over why we find these locations to be the best places to buy vacation rental property investments. Here’s the countdown:
10. Tucson, Arizona
Median Home Value= $134,900
Monthly Rent=$950
Tucson is nicknamed the “City of Sunshine” for a reason. This city enjoys the luxury of 350 days of sunshine a year. This sunny city has grown to become a tourist and vacation hotspot. Surrounded by multiple mountain ranges and encompassed by the Sonoran Desert, this Arizona real estate market is a feast of natural beauty.
9. Daytona Beach, Florida
Median Home Value=$96,800
Monthly Rent= $961
Daytona Beach snagged a spot on the list of the best places to buy vacation rental property. This sunshine state city is known as the “world’s most famous beach.” This vacation spot offers a whopping 23 miles of beach, golf courses, and extracurricular activities galore!
8. Myrtle Beach, South Carolina
Median Home Value= $180,000
Monthly Rent= $975
A whole 60 miles of sandy beaches + every attraction you could think of = why vacationers love Myrtle Beach. Increasing home values = price-to-rent ratio real estate investors like you will love. There is no wonder we consider this one of the best places to buy vacation rental property.
7. Stroudsburg, Pennsylvania
Median Home Value= $136,000
Monthly Rent= $1,000
Looking for a location that provides a nostalgic stroll down memory lane? Stroudsburg’s historic downtown area has grown to be a tourist hub. This is a popular destination for hikers, skiers, and outdoor enthusiasts. If you feel a connection with this city, you have found one of the best places to buy vacation rental property.
6. Kissimmee, Florida
Median Home Value=$131,200
Monthly Rent= $1,150
With yet another Florida city, Kissimmee is considered one of the best places to buy vacation rental property. Located along the northwest shore of Lake Tohopekaliga, this city is a popular year-round destination.
Other than the sunny weather and warm temperatures, Kissimmee is known for its close proximity to Disney World and Universal Studios. Taking location and amenities into consideration, real estate investors can make a good buck in Kissimmee.
5. Cape Cod, Massachusetts
Median Home Value=$362,000
Monthly Rate= N/A
It’s no shock that Cape Cod is a candidate in the top 10 best places to buy vacation rental property. Its name has grown due to the must-see villages, seafood shacks, lighthouses, and ocean beaches.
Investors are able to assign higher rent rates due to Cape Cod’s higher than average living costs. You’re looking at oceanfront investment properties fetching anywhere from $1500 to $4,000 per week!
4. Haines City, Florida
Median Home Value= $130,400
Monthly Rate= $1,175
Florida has been taking the wins for the best places to buy vacation rental property investments. Funny enough, Haines City is also known as the “heart of Florida,” as the city’s name has grown extremely. Why? Thanks to Mickey and Miney Mouse! With the arrival of Walt Disney World and the amusement park Legoland, Haines has marked its spot on the map.
3.Rio, Florida
Median Home Value=$143,700
Monthly Rate= $1,264
Rio is considered one of the best places to buy vacation rental property for its perfect setting! Summer homes, along with weekly and monthly vacation rentals, make up the Florida city. Snuggled between pristine beaches and the St. Lucie River, Rio is the ideal vacation investment property location!
2.Thousand Palms, California
Median Home Value= $164,400
Monthly Rate= $1,393
Coming in at second for the best cities to buy vacation rental property (or properties, because it’s a hot one!) is this Golden State city. This city is a hot U.S. real estate market for its affordable area for both vacationers and property investors. The picturesque desert landscape is in close proximity to Indio, where the huge music festival Coachella is hosted twice a year.
1.Port Salerno, Florida
Median Home Value= $153,800
Monthly Rate= $1,472
If one thing is for sure, Florida has made its mark on the map of the best places to buy vacation rental property investments. This vacation town can cater to both golfers and beach lovers. Its location offers easy miles to stunning beaches!
Real estate investors should look into Port Salerno, as it offers the best value in terms of home value and potential rent. $1400 is pretty up there in rental income if you ask us.
You Know the Places, Go Get the Property!
Mashvisor has given you our special guide to what places you should invest in if you’re looking for the most profitable investments. Which you should be because you are a hungry lion in the money making jungle! Knowing the best places to buy vacation rental property investments, go out there and find what shoe fits you best.
Take into consideration the numbers, the style, and whether you, the property investor, can connect to the location as well. Nothing is better than putting your own twist on your vacation rental property. It makes the job all the more fun! With your special twist and Mashvisor’s toolbox, the money itself will be fighting to get in your pocket!
