Many beginner real estate investors are constantly looking for a convenient and easy way of making money in real estate. Investing in vacation home rentals might be the one rental strategy that falls into the category “Easy and Convenient.” Being an owner of income properties, such as vacation home rentals, has its own benefits. On one hand, you have an investment property that serves you as a vacation home, where a real estate investor is able to spend his/her holiday. On the other hand, it is an income generating investment, which the rest of the year generates you a certain rental income. When considering investing in vacation home rentals, the California real estate market should definitely be one of your options. Why? Well, in order to provide you with a good answer, let’s explore the best places to invest in real estate in California 2018!
#1 Why Vacation Home Rentals Are Considered as the Best Real Estate Investment Strategy
As we have already mentioned, investing in vacation home rentals has a double benefit. However, let’s explain it from the financial side. With such rental properties, California real estate investors, for instance, will be able to save money on vacations as there will not be a need to book a room in a hotel. Every year, the real estate investor will be able to spend holidays at his/her favorite location. Moreover, for the rest of the year, he/she will be able to rent the California investment property out to potential tenants. Consequently, these Airbnb rentals will generate rental income. Thus, you kill two rabbits with one shot. Your investment property generates you additional rental income as well as provides you with a place to spend your holiday.
In order for California real estate investors to select the best income properties, it is advised to use a rental property calculator. So, by using this real estate investing tool you, as a real estate investor, have all the chances to fall into the category of the most successful real estate investors. Interested to learn more about vacation home rentals? Make sure to read “Why You Should Invest in Vacation Home Rentals in 2018.”
#2 How to Identify the Best California Investment Properties
For every real estate investor, the location of the best vacation home rentals will be different. The reason is that various real estate investors choose a certain vacation home based on their personal preferences of a favorite place. It is not a secret that the California real estate market is commonly met by many investors as a preferred place to invest in vacation home rentals.
However, when there is the intention to invest either in Airbnb rentals or traditional rentals, the property should generate a high return on investment while still meeting your financial budget. Let me reveal a small secret for those of you who plan on investing in the California real estate market. The most successful real estate investors are using Mashvisor’s rental property calculator, the must-have real estate investing tool, when trying to select the best places to invest in real estate in California 2018. That’s because this powerful tool can help to identify the most affordable locations in this expensive US real estate market.
To learn more about our product, click here.
#3 Most Affordable Locations for Buying Vacation Home Rentals: San Francisco
San Francisco is truly one of the greatest cities. Why? The crimson bridge, a sparkling bay, cable cars as well as streets lined with elegant Victorian homes- all this makes this city a wonderful place to visit and live. Moreover, in this city, many travelers may experience the diverse nightlife and a trend-setting cuisine. Curious to learn about San Francisco laws? Make sure to read “The San Francisco Real Estate Market for Short-term Rentals: New Airbnb San Francisco Laws in 2018.”
Here are the most affordable neighborhoods for San Francisco real estate found by Mashvisor’s investment property calculator:
Airbnb California Real Estate – South of Market
- Median Property Price: $749,565
- Airbnb Rental Income: $5,185
- Airbnb Cash on Cash Return: 3.56%
- Airbnb Cap Rate: 3.56%
- Airbnb Occupancy Rate: 70.16%
Airbnb California Real Estate – Yerba Buena
- Median Property Price: $1,060,750
- Airbnb Rental Income: $5,592
- Airbnb Cash on Cash Return: 3%
- Airbnb Cap Rate: 3%
- Airbnb Occupancy Rate: 70.69%
Airbnb California Real Estate – Western Addition
- Median Property Price: $1,195,000
- Airbnb Rental Income: $6,573
- Airbnb Cash on Cash Return: 1.99%
- Airbnb Cap Rate: 1.99%
- Airbnb Occupancy Rate: 70.49%
#4 Most Affordable Locations for Buying Vacation Home Rentals: Sacramento
Sacramento is a constantly developing city that has reasonable costs of living. Moreover, young professionals and middle-class families are the leading populations in this city. Economic development and the real estate market provide the locals and newcomers with exciting opportunities. This city favors foodies as well with its farm-to-fork movement. Consequently, Sacramento intrigues many individuals to visit its premises. Should you buy a vacation home in Sacramento real estate? Make sure to read “Should I Buy a Vacation Home in Sacramento, CA?”
Here are the most affordable neighborhoods for Sacramento real estate:
Airbnb California Real Estate – North Oak Park
- Median Property Price: $365,000
- Airbnb Rental Income: $2,967
- Airbnb Cash on Cash Return: 3.37%
- Airbnb Cap Rate: 3.37%
- Airbnb Occupancy Rate: 68%
Airbnb California Real Estate – Downtown
- Median Property Price: $412,500
- Airbnb Rental Income: $2,355
- Airbnb Cash on Cash Return: 1.55%
- Airbnb Cap Rate: 1.55%
- Airbnb Occupancy Rate: 63.84%
Airbnb California Real Estate – Upper Land Park
- Median Property Price: $446,700
- Airbnb Rental Income: $2,773
- Airbnb Cash on Cash Return: 3.54%
- Airbnb Cap Rate: 3.54%
- Airbnb Occupancy Rate: 68%
#5 Most Affordable Locations for Buying Vacation Home Rentals: San Jose
Thinking of a city with an innovative spirit? Well, San Jose is one of those. San Jose hosts many tech headquarters such as Google, Apple and many more. Here is the most affordable neighborhood in this real estate market where you can still get a good return on investment.
Airbnb California Real Estate – North Valley
- Median Property Price: $858,772
- Airbnb Rental Income: $4,049
- Airbnb Cash on Cash Return: 1.76%
- Airbnb Cap Rate: 1.76%
- Airbnb Occupancy Rate: 65.59%
#6 Most Affordable Locations for Buying Vacation Home Rentals: Los Angeles
Los Angeles is seen as the world’s entertainment capital with a paradise of idyllic weather. Los Angeles is the place to visit, with such attractions as the Walk of Fame already making it worth the trip. Los Angeles provides many career opportunities and allows many newcomers to dream big.
Here are a few of the most affordable neighborhoods in this real estate market.
Airbnb California Real Estate – Westlake
- Median Property Price: $973,952
- Airbnb Rental Income: $1,368
- Airbnb Cash on Cash Return: 1%
- Airbnb Cap Rate: 1%
- Airbnb Occupancy Rate: 63.15%
Airbnb California Real Estate – Chinatown
- Median Property Price: $1,019,123
- Airbnb Rental Income: $2,488
- Airbnb Cash on Cash Return: 1.09%
- Airbnb Cap Rate: 1.09%
- Airbnb Occupancy Rate: 62.98%
To learn about your options for signing up for our services, click here.