What are the best vacation rental sites for achieving the highest ROI in real estate investing?
When it comes to the best vacation rental sites, you will want to look for locations that have a good and balanced performance throughout the year, but that also have a higher potential for profits during certain times of the year, especially during the summer season.
I have compiled a list of the best vacation rental sites to consider when investing in real estate in 2018. These locations have shown the highest all-around ROI based on their average Cap Rates, making them the most profitable locations for investing in vacation rentals, especially during the summer season this year.
Best Vacation Rental Sites 2018: Panama City Beach, Florida
Median Property Price: $247,722
Median Vacation Rental Rate: $1,791
Average Vacation Rental Cap Rate: 5.42%
Average Vacation Rental Occupancy Rate: 47%
As you can see, Panama City Beach, Florida, is an excellent choice for investing in a vacation rental, which is to be expected from a warm city that is located on the beach.
If you own a vacation rental in Panama City Beach, then you should expect a very high ROI, especially due to the spikes of high profits that you will be generating during the summer season, while also having a good cash flow and occupancy rate during the winter season due to the warm climate of the state of Florida.
Related: The 7 Best Places to Buy a Vacation Home in Florida
Best Vacation Rental Sites 2018: West Woodlawn, Chicago, Illinois
Median Property Price: $171,000
Median Vacation Rental Rate: $2,170
Average Vacation Rental Cap Rate: 5.76%
Average Vacation Rental Occupancy Rate: 65%
While the overall performance of Chicago is not considered optimal for short-term rentals in general, the neighborhood of West Woodlawn has shown very high potential for profits due to the high occupancy rate of vacation rentals, coupled with the low median price of investment properties in the area.
To put it into context: the median property price in Chicago is $449,220, and the average short-term rental cap rate is 1.37%, which is drastically lower than it is in West Woodlawn, making this neighborhood the best neighborhood for investing in vacation rentals in the city of Chicago.
To start your 14-day free trial with Mashvisor and subscribe to our services with a 20% discount after, click here.
Best Vacation Rental Sites 2018: Napa, California
Median Property Price: $747,813
Median Vacation Rental Rate: $4,929
Average Vacation Rental Cap Rate: 4.56%
Average Vacation Rental Occupancy Rate: 54%
Napa, California, is the most expensive location on this list of best vacation rental sites to invest in.
This, however, is to be expected from most cities in the state of California where property prices have been on the rise for years.
Although the median property price is very high in Napa, the median rental income that can be achieved by owning a vacation rental is also extremely high. This means that if you have enough money to purchase an investment property in California, then you should definitely consider investing in Napa.
Best Vacation Rental Sites 2018: Cheyenne Park, Tulsa, Oklahoma
Median Property Price: $125,000
Median Vacation Rental Rate: $1,394
Average Vacation Rental Cap Rate: 7.44%
Average Vacation Rental Occupancy Rate: 47%
On the other hand, you have Cheyenne Park in Tulsa, Oklahoma, which is the cheapest location to purchase an investment property on this list.
The low median property prices, coupled with the relatively high rental rates, have led Cheyenne Park to have the highest average cap rates when investing in vacation rentals.
In comparison, if you look at Mashvisor’s data for the entire city of Tulsa, you will find that the median property price is more than double the amount ($284,809), and the median short-term rental rate is SEVERELY lower and it sits at only $162.
This is because short-term rentals, in general, have legal restrictions that severely limit their profitability as investment properties, whereas these laws are more forgiving in the neighborhood of Cheyenne Park.
Related: Which Are the US Cities with the Most Airbnb Legal Issues at the Beginning of 2018?
Best Vacation Rental Sites 2018: Downtown, Memphis, Tennessee
Median Property Price: $269,900
Median Vacation Rental Rate: $1,950
Average Vacation Rental Cap Rate: 4.50%
Average Vacation Rental Occupancy Rate: 51%
Downtown Memphis is perhaps the most balanced place to invest in a vacation rental in 2018.
The median property prices are relatively low, while the median rental rates are relatively high, resulting in a balanced cap rate of 4.50%.
Unlike Tulsa and Chicago, Memphis’s stats are not so bad compared to the stats of the Downtown area. In fact, the median property price in Memphis is actually lower than it is in the Downtown area, which is considered normal in urban areas in general.
Related: Best Places to Buy Vacation Rental Properties 2017
Now that you have an idea of the best markets to consider when investing in vacation rentals this year, what should you do next?
The best place to start your search for the perfect investment property in these areas is Mashvisor.
By using Mashvisor, you can be certain that you will find the perfect vacation rental to invest in based on your own investment criteria and goals and based on your preferences for the investment property that you would like to own.
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.
The platform will give you access to a large amount of information and data on these markets and the investment properties in them, allowing you to make the wisest investment decisions based on accurate readings and projections and by using real estate analytics and data comps.