Investor Blogs Best Places to Buy an Investment Property for Airbnb Rental Income by Daniela Andreevska March 17, 2018February 12, 2019 by Daniela Andreevska March 17, 2018February 12, 2019 Real estate investing is a great way to make money, but in order to be a successful real estate investor, you have to know the best places to buy an investment property. Whether you go for traditional rentals or Airbnb rentals, location is a key factor determining your return on investment and your profitability. If you have decided to invest in Airbnb properties, then you should know all the top places to buy an investment property in the US housing market for Airbnb rental income. After all, rental income is how real estate investors make money from rental properties. Before we start, let us just say that the data we use to rank the top locations to buy a rental property in the current US housing market is computed by Mashvisor’s rental property calculator. Mashvisor’s rental property calculator is the ultimate real estate investing tool which uses traditional as well as predictive analytics to provide you with reliable estimates of the rental income, cash on cash return, cap rate, and occupancy rate for both traditional rentals and Airbnb rentals. To learn about the many benefits of using an investment property calculator when investing in real estate, read “Investment Property Calculator For Analyzing Real Estate Investments”. To start your 14-day free trial with Mashvisor and subscribe to our services with a 20% discount after, click here. But now, let’s jump right into the top places to buy an investment property for Airbnb rental income in the 2018 US housing market: Best Places to Buy an Investment Property for Airbnb Rental Income #1: Playa Hermosa, CA Airbnb Rental Income: $9,000 Airbnb Cash on Cash Return: 4.3% Traditional Rental Income: $6,130 Traditional Cash on Cash Return: 2.1% Median Property Price: $1,350,000 Best Places to Buy an Investment Property for Airbnb Rental Income #2: Boonville, CA Airbnb Rental Income: $8,970 Airbnb Cash on Cash Return: 4.6% Traditional Rental Income: – Traditional Cash on Cash Return: – Median Property Price: $1,349,000 Best Places to Buy an Investment Property for Airbnb Rental Income #3: Malibu, CA Airbnb Rental Income: $8,050 Airbnb Cash on Cash Return: 1.5% Traditional Rental Income: $6,630 Traditional Cash on Cash Return: 1.1% Median Property Price: $2,300,000 Best Places to Buy an Investment Property for Airbnb Rental Income #4: Pebble Beach, CA Airbnb Rental Income: $7,310 Airbnb Cash on Cash Return: 1.9% Traditional Rental Income: $3,510 Traditional Cash on Cash Return: – Median Property Price: $1,785,000 Best Places to Buy an Investment Property for Airbnb Rental Income #5: Shorewood Hills, WI Airbnb Rental Income: $7,150 Airbnb Cash on Cash Return: 0.7% Traditional Rental Income: $1,800 Traditional Cash on Cash Return: – Median Property Price: $2,000,000 Best Places to Buy an Investment Property for Airbnb Rental Income #6: Menlo Park, CA Airbnb Rental Income: $7,110 Airbnb Cash on Cash Return: 0.9% Traditional Rental Income: $5,410 Traditional Cash on Cash Return: 0.4% Median Property Price: $2,538,000 We know what you must be thinking by now: This blog should have been titled “The Top Places to Buy an Investment Property for Airbnb Rental Income in California”. Or even better: “The Most Expensive Places to Buy an Investment Property in California”. But wait a bit! There are even more places in California in this list… but we promise you: Some of them are much more affordable than the ones above… Best Places to Buy an Investment Property for Airbnb Rental Income #7: Key Haven, FL Airbnb Rental Income: $6,940 Airbnb Cash on Cash Return: 2.1% Traditional Rental Income: $1,100 Traditional Cash on Cash Return: – Median Property Price: $1,800,000 If you are looking for the best locations to invest in a vacation home in Florida, which offer much more affordable rental properties with significantly higher Airbnb cash on cash return and Airbnb cap rate, read “The 7 Best Places to Buy a Vacation Home in Florida”. Best Places to Buy an Investment Property for Airbnb Rental Income #8: Great Falls, VA Airbnb Rental Income: $6,900 Airbnb Cash on Cash Return: 4.6% Traditional Rental Income: $2,970 Traditional Cash on Cash Return: 0.8% Median Property Price: $995,000 Best Places to Buy an Investment Property for Airbnb Rental Income #9: Moss Landing, CA Airbnb Rental Income: $6,750 Airbnb Cash on Cash Return: 1.8% Traditional Rental Income: $1,780 Traditional Cash on Cash Return: – Median Property Price: $975,000 Best Places to Buy an Investment Property for Airbnb Rental Income #10: Ewa Beach, HI Airbnb Rental Income: $6,680 Airbnb Cash on Cash Return: 8.4% Traditional Rental Income: $2,330 Traditional Cash on Cash Return: 2.3% Median Property Price: $659,000 Actually, so far in our list of the top locations to buy an Airbnb investment property, Ewa Beach, HI is the first one which yields high return on investment in terms of good cash on cash return for Airbnb properties. It is also a much more affordable location compared to the places above. Best Places to Buy an Investment Property for Airbnb Rental Income #11: Key West, FL Airbnb Rental Income: $6,650 Airbnb Cash on Cash Return: 4.7% Traditional Rental Income: $1,790 Traditional Cash on Cash Return: 0.1% Median Property Price: $879,000 Best Places to Buy an Investment Property for Airbnb Rental Income #12: Pacific Grove, CA Airbnb Rental Income: $6,550 Airbnb Cash on Cash Return: 4.9% Traditional Rental Income: $2,500 Traditional Cash on Cash Return: 0.6% Median Property Price: $984,000 Best Places to Buy an Investment Property for Airbnb Rental Income #13: Tiburon, CA Airbnb Rental Income: $6,520 Airbnb Cash on Cash Return: 2.6% Traditional Rental Income: $6,090 Traditional Cash on Cash Return: 2.3% Median Property Price: $1,310,000 Best Places to Buy an Investment Property for Airbnb Rental Income #14: Boalsburg, PA Airbnb Rental Income: $6,230 Airbnb Cash on Cash Return: 7.1% Traditional Rental Income: $1,520 Traditional Cash on Cash Return: – Median Property Price: $975,000 Here you have Boalsburd, PA – one more location where an Airbnb investment property yields high return on investment in terms of good cash on cash return. Best Places to Buy an Investment Property for Airbnb Rental Income #15: Laguna Beach, CA Airbnb Rental Income: $6,250 Airbnb Cash on Cash Return: 1.2% Traditional Rental Income: $5,140 Traditional Cash on Cash Return: 0.6% Median Property Price: $2,193,000 That’s quite pricey, no??? If, on the other hand, you are looking for the best locations to invest in a vacation home in California, which offer much more affordable rental properties with much higher Airbnb cash on cash return and Airbnb cap rate, read “The 5 Best Places to Buy a Vacation Home in California in 2017”. Best Places to Buy an Investment Property for Airbnb Rental Income #16: Sullivans Island, SC Airbnb Rental Income: $6,200 Airbnb Cash on Cash Return: 3.3% Traditional Rental Income: $4,440 Traditional Cash on Cash Return: 1.6% Median Property Price: $1,390,000 Best Places to Buy an Investment Property for Airbnb Rental Income #17: Nantucket, MA Airbnb Rental Income: $6,150 Airbnb Cash on Cash Return: 1.7% Traditional Rental Income: – Traditional Cash on Cash Return: – Median Property Price: $1,898,000 Best Places to Buy an Investment Property for Airbnb Rental Income #18: Napa, CA Airbnb Rental Income: $6,070 Airbnb Cash on Cash Return: 5.8% Traditional Rental Income: $2,700 Traditional Cash on Cash Return: 1.4% Median Property Price: $673,000 Best Places to Buy an Investment Property for Airbnb Rental Income #19: Calistoga, CA Airbnb Rental Income: $6,070 Airbnb Cash on Cash Return: 7.7% Traditional Rental Income: $2,540 Traditional Cash on Cash Return: 1.9% Median Property Price: $589,000 You might want to look further into Calistoga, CA if you are looking for a place which will generate good cash on cash return for your Airbnb rental. Best Places to Buy an Investment Property for Airbnb Rental Income #20: Goleta, CA Airbnb Rental Income: $6,040 Airbnb Cash on Cash Return: 4.6% Traditional Rental Income: $3,240 Traditional Cash on Cash Return: 1.8% Median Property Price: $799,000 Best Places to Buy an Investment Property for Airbnb Rental Income #21: West Belmar, NJ Airbnb Rental Income: $6,040 Airbnb Cash on Cash Return: 10.0% Traditional Rental Income: $2,300 Traditional Cash on Cash Return: 1.7% Median Property Price: $467,000 In this list, West Belmar, NJ is the location which generates the highest Airbnb cash on cash return. A double-digit return on investment is actually great. And property prices are affordable, which makes West Belmar, NJ a viable investment option for even beginner real estate investors. Best Places to Buy an Investment Property for Airbnb Rental Income #22: Poway, CA Airbnb Rental Income: $6,020 Airbnb Cash on Cash Return: 3.6% Traditional Rental Income: $2,610 Traditional Cash on Cash Return: 1.0% Median Property Price: $860,000 And of course, there is no other more proper way to finish this list of the best places to buy an investment property for Airbnb rental income other than a California city. Simply because California is clearly dominating the ranking provided by Mashvisor’s rental property calculator. In conclusion, we would like to remind all real estate investors that return on investment in real estate – regardless of which return on investment metric you use – boils down to a ratio of how much you are getting from your rental property (rental income) and how much you’ve paid for it (property price). To get good return on investment – such as good cash on cash return or good cap rate – you obviously have to have high rental income. However, you should also have relatively low property price. Thus, when you decide where to invest in real estate in the US in 2018, don’t look at just the Airbnb rental income. More importantly, look at the Airbnb cash on cash return to make sure that you will make good money from your next rental property. Also, since we are talking about Airbnb rentals here, always make sure to check the local laws and regulations governing short-term rentals before buying an investment property for the sole purpose of renting it out on Airbnb. 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 AirbnbKey West FLLocationMalibu CANapa CARental Income 0 FacebookTwitterGoogle +PinterestLinkedin Daniela Andreevska Daniela is Marketing Director at Mashvisor. She has been writing about real estate investing for a number of years. Previously, she worked in economic policy research and fundraising. Daniela holds a Master degree in Middle East and Mediterranean Studies from King’s College London. Previous Post Cash on Cash Return Calculator Tells You More Than Just Numbers Next Post What are The Best Market Analysis Tools in Real Estate Investing? Related Posts Cash Flow Investment Property: The Key to a Successful Investment Why Investing in Multifamily Properties Could Be Better Than Investing in Single Family Ones A Step-by-Step Guide to Financing a Condo Investment What Are the Benefits of Investing in Real Estate? 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