Buying Investment Property Best Locations to Buy an Airbnb Investment Property for High Cap Rate by Eman Hamed April 16, 2018September 23, 2018 by Eman Hamed April 16, 2018September 23, 2018 If you’re looking to buy an investment property, you should know that the key to successful real estate investing is location, location, location! When owning an investment property, a real estate investor has to choose between two rental strategies: traditional rentals (long-term) or Airbnb rentals (short-term). Whichever rental strategy you opt for, the location of the real estate property will determine its profitability and return on investment. If you’ve decided that real estate investing through Airbnb is the right choice, then this article is just for you! Here, we’re providing real estate investors with the best locations across the US real estate market to buy an Airbnb investment property for the highest cap rate, according to Mashvisor’s rental property calculator. Related: How to Calculate Cap Rate: A Step Towards Becoming a Successful Real Estate Investor What Makes the Best Locations for an Airbnb Investment Property? Before we start with our list of the best locations for short-term Airbnb rentals, we should answer one important question: what makes certain locations better suited for short-term Airbnb real estate investing than others? The first feature of the best locations for Airbnb rentals is high demand. No real estate investor wants to buy an investment property and then not find tenants to rent it. Cities that are considered tourist destinations have a high demand for Airbnb. Demand will ultimately determine the property price and Airbnb rental income – which are the second features of profitable locations for an Airbnb investment property. You will notice that the cities and neighborhoods on our list provide real estate investors with a reasonable median price for a rental property and a high Airbnb rental income and cap rate. The final characteristic of a profitable location for short-term Airbnb rentals is Airbnb laws! To date, some cities across the US real estate market have strict regulations regarding Airbnb and some don’t even allow it. Thus, always make sure to check the local laws and regulations governing short-term rentals before buying an investment property and renting it out on Airbnb. Related: Which Are the US Cities with the Most Airbnb Legal Issues at the Beginning of 2018? Click here to find and analyze different investment properties across the US and find which work best as short-term Airbnb rentals! The Best Locations for Airbnb Investment Property in the US Every real estate investor knows that anything above 10% is considered a good cap rate. However, after taking into consideration today’s competitive real estate market, you’ll note that the below-mentioned locations offer an Airbnb cap rate of above 7%. Nonetheless, these are still considered top locations! So, without further ado, here are the most profitable short-term Airbnb locations with the highest cap rate in the US real estate market in 2018 as computed by Mashvisor’s rental property calculator. Related: Mashvisor’s Rental Property Calculator: A Guide for Beginner Real Estate Investors Best Locations for Airbnb Investment Property – Millenia, Orlando, FL Median Property Price: $115,000 Airbnb Rental Income: $2,266 Occupancy Rate: 55.64% Airbnb Cap Rate: 11.72% Best Locations for Airbnb Investment Property – East Nashville Block Club, Nashville, TN Median Property Price: $286,250 Airbnb Rental Income: $3,612 Occupancy Rate: 62.60% Airbnb Cap Rate: 10.02% Best Locations for Airbnb Investment Property – Volker, Kansas City, MO Median Property Price: $330,000 Airbnb Rental Income: $4,101 Occupancy Rate: 55.31% Airbnb Cap Rate: 9.85% Best Locations for Airbnb Investment Property – Chula Vista, Fort Lauderdale, FL Median Property Price: $297,500 Airbnb Rental Income: $3,567 Occupancy Rate: 46.86% Airbnb Cap Rate: 8.48% Best Locations for Airbnb Investment Property – Oak River Homeowners, Fort Lauderdale, FL Median Property Price: $259,750 Airbnb Rental Income: $2,974 Occupancy Rate: 51.55% Airbnb Cap Rate: 8.33% Best Locations for Airbnb Investment Property – Poinsettia Heights, Fort Lauderdale, FL Median Property Price: $435,000 Airbnb Rental Income: $5,102 Occupancy Rate: 58.07% Airbnb Cap Rate: 8.09% Best Locations for Airbnb Investment Property – Metro West, Orlando, FL Median Property Price: $319,900 Airbnb Rental Income: $3,134 Occupancy Rate: 62.00% Airbnb Cap Rate: 7.65% Best Locations for Airbnb Investment Property – Michael Way, Las Vegas, NV Median Property Price: $199,999 Airbnb Rental Income: $2,151 Occupancy Rate: 59.32% Airbnb Cap Rate: 7.65% Best Locations for Airbnb Investment Property – Winchester, Las Vegas, NV Median Property Price: $225,000 Airbnb Rental Income: $2,334 Occupancy Rate: 52.82% Airbnb Cap Rate: 7.55% Best Locations for Airbnb Investment Property – Huntridge, Las Vegas, NV Median Property Price: $225,000 Airbnb Rental Income: $2,151 Occupancy Rate: 44.10% Airbnb Cap Rate: 7.38% Sign up for Mashvisor now to get access to our rental property calculator as well as other real estate investing tools to help you buy the best investment properties anywhere in the US real estate market. To learn more about our product, click here. The Best Locations for Airbnb Investment Property – Conclusion The above-mentioned cities and neighborhoods are those which real estate investors will find to be the best for an Airbnb investment property with high cap rate, as calculated by Mashvisor’s rental property calculator. You’ll notice that the previously mentioned features and characteristics of a good Airbnb location are found in these real estate markets. Thus, whether you’re a beginner real estate or an experienced real estate investor looking to invest in real estate through Airbnb, these should definitely be on your list of places in which to buy an investment property. Mashvisor is an online platform that provides real estate investors with the best real estate investing tools to make smart investment decisions more efficiently. Mashvisor’s rental property calculator is the ultimate tool that uses traditional as well as predictive analytics to provide the real estate investors with reliable estimates of rental income, cash on cash return, cap rate, and the occupancy rate for both traditional and Airbnb investment properties. To learn more about how we will help you make faster and smarter real estate investment decisions, click here. Furthermore, Mashvisor’s Knowledge Center includes thousands of real estate guides, tips, and up to date information! To learn more about all aspects of real estate investing, continue reading our blog. To start your 14-day free trial with Mashvisor and subscribe to our services with a 20% discount after, click here. Start Your Investment Property Search! START FREE TRIAL Start Your Investment Property Search! START FREE TRIAL Anaheim CAFort Lauderdale FLKansas City MOLas Vegas NVLocationNashville TNOrlando FL 0 FacebookTwitterGoogle +PinterestLinkedin Eman Hamed Eman is a Content Writer at Mashvisor. With a focus on market reports, she enjoys researching the state of the real estate market in different cities across the US. Eman also writes about trends, forecasts, and tips for beginner investors to gain the confidence and knowledge they need to make wise decisions. Previous Post Should You Invest in Short Term Rentals in Fort Lauderdale? 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