Buying a second home as an Airbnb vacation rental has great financial benefits. If this is something you’re interested in, you should know that the best places to buy vacation rental property are locations where people want to visit throughout the year. This is because you want to have a high Airbnb occupancy rate, which translates into a high rental income and ROI. It could be in the winter, during peak vacation times, or times of festivities like a large sporting event or college spring break.
Spring break actually brings mad money for real estate investors who own short-term vacation rentals. It’s that time of the year when thousands travel to get away from work, school, and even cold weather. So it’s no longer just about college kids and hardcore partying. Some spring break destinations are better suited for the college crowd, sure, but some are also perfect for families, couples, or even solo travelers.
Thus, buying a rental property in a popular spring break destination and renting it out to short-term tenants on Airbnb can be a lucrative real estate investment in 2019. Now the question remains: Where in the US are the best places to invest in vacation rental properties for spring break?
What Makes for the Best Places to Buy Vacation Rental Property in 2019?
We’ve put together this list of the top locations for real estate investors thinking of starting a vacation rental business to look further into. According to the travel search engine Kayak, these are the most popular spring break destinations in the US for 2019. These are famous for their beaches, their scenery, the activities in town, or even their restaurant scene.
Because you’re a real estate investor, we’ve also used data from Mashvisor’s Investment Property Calculator to give you more information on what return on investment you can expect from investing in each location. Keep in mind, we’re only listing cities where buying and renting out a vacation rental on Airbnb is legal for real estate investors.
For example, Las Vegas is a popular spring break destination in the US, so you might think renting out on Airbnb here would make for a smart investment as it’ll bring great returns. However, this past December, the City Council voted to no longer permit property investors to rent out for less than 31 days in the city. The new Airbnb laws only allow property owners who personally reside in the rental to operate legally. For this reason, we’ve excluded Las Vegas from our list.
For more details, read: 2019 Las Vegas Airbnb Laws Restrict Rentals to Primary Residences
Now that it’s clear how we came up with this list, here are the 9 best places to buy vacation rental property for spring break in 2019.
#1 Cannon Beach, OR
The coastal town of Cannon Beach has a population of only around 1,700 people. However, over 750,000 visit it every year to enjoy an affordable vacation. For a real estate investor, the affordable median price of houses for sale and really high monthly rental income are what make this location attractive. This combination makes for a great return on investment, which is why Cannon Beach tops our list!
- Median Property Price: $329,000
- Price Per Sq/Ft: $331
- Airbnb Rental Income: $4,517
- Airbnb Occupancy Rate: 60%
- Walk Score: 59
- Cash on Cash Return: 10%
#2 Lake Geneva, WI
Lake Geneva is a resort city in southeastern Wisconsin. It has a full range of activities right for any age including zip lining, paddle-boarding, hiking, shopping, and boat tours. A great thing about investing in short-term rentals here is that visitors come to the city all year-round. This means property investors enjoy good Airbnb occupancy rates whether in the summer or winter time.
- Median Property Price: $347,613
- Price Per Sq/Ft: $207
- Airbnb Rental Income: $3,382
- Airbnb Occupancy Rate: 48%
- Walk Score: 76
- Cash on Cash Return: 7%
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#3 Atlantic City, NJ
Everyone comes to Atlantic City! As one of the most famous cities on the New Jersey Coast, Atlantic City is a famous tourist destination. Known for its iconic Boardwalk, sandy beaches, and glamorous casinos, the city attracts visitors from all over the world as well as weekenders from New York and Philadelphia. Moreover, it’s a top entertainment spot, making it one of the best places to buy vacation rental property for spring break 2019!
- Median Property Price: $256,530
- Price Per Sq/Ft: $171
- Airbnb Rental Income: $2,288
- Airbnb Occupancy Rate: 41%
- Walk Score: 71
- Cash on Cash Return: 5%
#4 Panama City Beach, FL
Florida’s coast is ringed with fantastic beach destinations, but when spring break comes around, no city in northern Florida is as lively as Panama City Beach. This beach paradise has everything vacationers desire- 27 miles of beautiful beaches to explore, nightlife to enjoy, and watersport activities. Only a few destinations can beat Panama City Beach for both short-term guests and real estate investors.
- Median Property Price: $365,456
- Price Per Sq/Ft: $274
- Airbnb Rental Income: $3,254
- Airbnb Occupancy Rate: 71%
- Walk Score: 44
- Cash on Cash Return: 4%
#5 Honolulu, HI
Located on the beautiful island of Oahu, Honolulu is the largest city in the state of Hawaii. With gorgeous beaches, surf-able waves, and tropical vibes, Honolulu is an epic spring break destination in 2019. Property investors must be aware, however, that Honolulu is one of the most expensive cities to invest in real estate. Thus, make sure to do your homework before buying a vacation rental property here.
- Median Property Price: $1,060,468
- Price Per Sq/Ft: $830
- Airbnb Rental Income: $3,719
- Airbnb Occupancy Rate: 73%
- Walk Score: 64
- Cash on Cash Return: 4%
#6 Key West, FL
This can’t be a complete list of the best places to buy vacation rental property if we don’t mention Key West. The southernmost point in the US is also one of its vacation hotspots all year-round. Therefore, it’s not surprising that spring break sees the island come alive with parties. And of course, we can’t forget about its gorgeous weather and fantastic scenery. Key West is the kind of destination that guarantees a good time for vacationers, and a good return on investment for real estate investors of short-term rentals.
- Median Property Price: $1,038,529
- Price Per Sq/Ft: $738
- Airbnb Rental Income: $5,562
- Airbnb Occupancy Rate: 78%
- Walk Score: 64
- Cash on Cash Return: 4%
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.
#7 Myrtle Beach, SC
Myrtle Beach is often called the vacation capital of the US. According to The Daily Meal, more than 14 million people visit Myrtle Beach every year for swimming, seafood, and shopping. From its traditional boardwalk amusement arcades to its stunning Ferris wheel, the vacation spirit is evident everywhere here. For real estate investors, Myrtle Beach houses for sale are the most affordable on our list! Here’s Mashvisor’s data for investing in short-term rental properties in Myrtle Beach:
- Median Property Price: $218,010
- Price Per Sq/Ft: $196
- Airbnb Rental Income: $2,371
- Airbnb Occupancy Rate: 57%
- Walk Score: 42
- Cash on Cash Return: 4%
#8 Orlando, FL
Orlando is famous for two things: Walt Disney World and Universal Orlando. However, this lively Florida destination has much more to offer than just amusement parks. The city topped Kayak’s list as the most popular spring break destination in America last year because it has something to offer for every kind of spring breaker. Moreover, Orlando is not just one of the best places to buy vacation rental property, but one of the top 10 real estate markets in the US for 2019! This would encourage anyone to start searching for an investment property for sale in Orlando.
- Median Property Price: $319,856
- Price Per Sq/Ft: $173
- Airbnb Rental Income: $2,218
- Airbnb Occupancy Rate: 64%
- Walk Score: 42
- Cash on Cash Return: 3%
#9 Phoenix, AZ
Phoenix is America’s desert capital and is the perfect spring break destination in 2019 for lovers of the great outdoors. The city gets around 300 days of sun per year and is home to good food, show-stopping sights, the stunning 50-acre Desert Botanical Garden, and a thriving downtown. It’s simply an ideal place for a break. It’ll sure satisfy travelers (whether solo, couples, or families) and real estate investors in short-term investment properties alike.
- Median Property Price: $423,296
- Price Per Sq/Ft: $973
- Airbnb Rental Income: $2,350
- Airbnb Occupancy Rate: 45%
- Walk Score: 41
- Cash on Cash Return: 3%
Here you go – these are the best places to buy vacation rental property for spring break in 2019. Based on real estate data and predictive analytics from Mashvisor, buying a second home as a short-term rental in one of these cities is the optimal strategy to make money in real estate. To get the full benefits of buying an investment property, we recommend buying now so you don’t miss out on great real estate investing opportunities!
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