Waves are hitting your feet with the chilling ocean water. The sun is beating down on your face and you can feel the pigment surfacing in your cheeks.
Chances are, you just thought of the best places to own a beach house. Why? Due to how wonderous of a feeling the sun can be. As a real estate investor, you’re on a constant search. On your search mission to find the best places to own a beach house, you look for location and investment property analytics that give you a good feeling. Here, we discuss the 5 best places to own a beach house.
Money Making with the Best Places to Own a Beach House
One of the smartest real estate investment moves you can make is to buy a beach house for rental income. Let’s go over the economics of buying a vacation home in the best places to own a beach house. Warning: You will LOVE what you’re about to read and may be motivated to purchase a beach investment property.
The investment property strategy of vacation home rentals allows you to benefit from the various advantages of real estate. Return on investment is probably one of the biggest pros of investing in the best places to own a beach house. Say hello to a cash flowing stream of rental income. You may even find yourself swimming in your own ocean of rental income on your positive cash flow beach. Seriously speaking, owning a vacation rental opens the doors to a great return on investment in real estate.
Using investment property analysis software will guide your way to finding the most profitable investments. These two real estate analytics give you an idea of what return on investment you can expect when owning a beach rental property:
- Cash on Cash Return
- Cap Rate
Real estate investment tools like an investment property calculator become significantly useful in this case. A rental property calculator, like the one you can find on Mashvisor, can give you those numbers and more. Finding a rental property to use as a vacation rental investment is made easy.
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And Some More Money Talk
Another important factor to consider is the occupancy rate when investing in beach rental property. You want to assure you find a location with high demand for vacation home rentals. When you explore the short term rental strategy of Airbnb, the Airbnb occupancy rate is the make it or break it factor.
More Into It: 4 Don’ts for Airbnb Occupancy Rates
Mashvisor is able to provide you with a projection of that Airbnb occupancy rate. Aim to keep it busy throughout the whole tourism season to cover the expenses you may incur for the rest of the year. High occupancy rates mean high rental income. We like the sound of that.
Learn Some More: The Use of Predictive Analytics in Real Estate Investing
If you’re able to achieve high rental income in the best places to own a beach house, you have the option to stay in the home yourself for no charge at all! Think about it. You accumulate such a good amount of rental income in the best places to own a beach house that there’s no need to rent it out in the offseason.
Enough of the money talk. Now, onto the best places to own a beach house!
The 5 Best Places to Own a Beach House
The Countdown of the 5 Best Places to Own a Beach House
So what makes these investment property locations the best of the best? Here’s the countdown of the 5 best places to own a beach house, and why!
#5 Virginia Beach, Virginia
Virginia is one of the best places to own a beach house for both real estate investors and travelers. It’s been reported that Virginia Beach hosted 15.2 million visitors in 2016 alone. That number just keeps growing year after year. Travelers love the world-class restaurants, music festivals, beaches, and overall vacation experience.
The Mashvisor numbers for Virginia Beach are looking just as great, supporting why it’s considered one of the best places to own a beach house. Choosing the Airbnb rental strategy can have you looking at a base rental income of $2,554, providing you with a 3.15% cash on cash return rate.
Even outside the typical June to August visitor season, Virginia Beach stands strong. If you’re looking into the most traditional real estate investment strategies for all year, you can expect a base rental income coming in at $1,536 per month. It’s safe to say Virginia Beach can be a year-round destination.
#4 Gulf Shores, Alabama
Gulf Shores is a state of its own with its picturesque beach! Nicknamed “Pleasure Island,” Gulf Shores’ sugar white beaches, turquoise waters, and freshwater lakes and rivers are some of its heavenly features. Nothing visitors love more than clear blue waters and sunshine for getaways.
Mashvisor reported an approximate 54% occupancy rate and monthly Airbnb base rental income of $3,041. That’s a lot of dollars if you ask us, giving you a 4.12% return on real estate investment rate (CoC). Not only do your visitors enjoy the blue waters, but you can enjoy the green cashflow that comes with investing in the best places to own a beach house.
#3 Orlando, FL
68 million. That’s how many tourists visited Orlando, FL in 2017. That is 68 million individuals potentially looking for vacation rental homes. That is where you come in, our friend. Mashvisor claims a $1,156 monthly rental income when you choose to invest in this best place to buy vacation home.
It has also been found that the Orlando real estate market gives one of the best opportunities for the buy and hold real estate strategy, with a suspected $1,554 monthly rental income (as reported by Mashvisor)!
More About the Sunny State: The 4 Best Places to Invest in Real Estate in Florida
#2 Myrtle Beach, SC
Looking for an investment property in Myrtle Beach? Consider raising your investment property ‘baby’ as a vacation rental in this U.S. real estate market. Myrtle Beach oceanfront lots were priced at $25 back in 1905. Yes, twenty-five dollars.
And get this, if you built another investment property for at least $500, you received a second lot for free. Now, although Mashvisor reports the median house price coming in at $234,577 and definitely not $500, we can agree that the numbers are still looking good.
In this sunny area, you can expect a 53% occupancy rate and monthly Airbnb rental income of $2,103! Going for traditional rental strategies like buy and holds? Prepare for a monthly rental income of $1,294!
#1 Ocean City, MD
8 million visitors and 10 miles of shoreline are two reasons to invest in vacation homes in the Ocean City housing market. The boardwalk – one of Ocean City’s tourist hotspots – lines the oceanfront with a number of different restaurants and attractions. No wonder 8 million visitors come through looking for vacation rental homes on the beach.
Real estate investors also get a piece of this heaven with the real estate analytics Mashvisor is showing! With an Airbnb occupancy rate of 40%, monthly Airbnb rental income of $1,863, we knew this had to be on the list of the best places to own a beach house.
Which Beach Will You Invest In?
We’ve given you the 5 best places to own a beach house. Now all you have to do is put your money where the sun is! Don’t worry, Mashvisor’s real estate analysis software will be with you, no matter which beach you decide on. The sun is waiting for you.
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