Should you buy a beach house as a real estate investment? Well, to begin with, the real estate industry offers different rental strategies such as investing in Airbnb, long-term rentals, commercial and residential properties, and many more.
Therefore, there are different factors that determine the optimal rental strategy for you. This includes the location, your budget, financial plans, the target real estate market and others. Investing in beach houses is definitely a lucrative one. Let us take a look at whether it is suitable for you to buy a beach house as a real estate investment or not.
Buy a Beach House to Rent Out on Airbnb
Deciding to buy a beach house is not an easy process as there are factors related to this specific real estate property that should be taken into account. First and foremost, location is the most important factor as you need to buy a beach house in a location that is warm all year long. That is due to the obvious fact that the occupancy rate of a beach house depends almost completely on the weather because people rent beach houses to enjoy a sunny vacation rental property. You also need to develop a proper marketing strategy to market your beach house and get constant cash flow, which is the ultimate goal of real estate investors.
There are many investors who buy a beach house in order to turn it into an Airbnb investment property. Having a beach house as an Airbnb investment has proven to be a success for many investors. Before you decide to buy a beach house and turn it into an Airbnb listing, you need to take into consideration the following tips:
For more information about Airbnb rental properties, make sure to check out The Ultimate Guide to the Airbnb Investment Property.
- Try to find innovative ways to market your listing on Airbnb or other vacation rental websites. Show your viewers the uniqueness of your beach house and tell them why they should rent it out. However, always be realistic and try to meet the expectations of your guests and viewers.
- Educate yourself about how to become a super Airbnb host and how to professionally deal with your guests and answer all inquiries of your viewers. Always be a nice and cooperative host in order to create a friendly environment for your guests.
- Learn everything about Airbnb property management and make a decision on whether or not you need professional property management. Airbnb property management is an important factor in the constant success of your Airbnb beach house. This is due to the fact that proper Airbnb property management secures managing your property all year long and getting it ready to welcome Airbnb guests.
- Design a strategy for the kind of tenants you want to attract before deciding to buy a beach house. If you want to attract only solo travelers, then you need to rent out one room of your beach house. However, if you are interested in attracting families or group travelers, then you need to put the entire property as available on Airbnb.
- Make sure you know all the ins and outs in regard to Airbnb laws and regulations within the location and state in which you decide to buy a beach house in. Keep in mind that Airbnb regulations differ from one city to another so make sure you read all about it in order to avoid any penalties and to be on the safe side of real estate investing.
- Before you buy a beach house and turn it into an Airbnb property, you need to know whether this property will be a lucrative one or not. Thus, make sure to know how to utilize an Airbnb profit calculator.
Do you want to know more about the Airbnb profit calculator? Make sure to read The Guide to Using an Airbnb Profit Calculator.
Where to Buy a Beach House
With its amazing weather, countless beaches and touristic sites, Miami is undoubtedly a great place to buy a beach house and rent it out as an Airbnb listing. There are many neighborhoods in Miami that are great for beach houses such as Wynwood and Little Havana. Mashvisor’s investment property calculator indicates the following figures for the Miami real estate market:
Airbnb occupancy rate: 54.7%
Median house price: $641,540
Airbnb rental income: $3,161
Do you want to know the best places to buy a vacation rental in Florida? Check out The 7 Best Places to Buy a Vacation Home in Florida.
Long Beach, California
Long Beach, California is yet another great place for investing in beach houses. Long Beach offers great experiences for guests to enjoy their vacations which increases the demand for Airbnb and short-term rentals in general. This, by all means, encourages real estate investors to buy a beach house in this city. The real estate market for this city looks like the following:
Airbnb occupancy rate: 59.15%
Median house price: $785,450
Airbnb rental income: $3,245
This coastal city attracts visitors year-round to stroll around its historic sites and take in the European architecture. Being just a short 30-minute drive away from Tybee Island, Airbnb guests can enjoy a nice beach escape from the city as well. These characteristics make Savannah one of the hottest places in the US housing market to invest in beach houses. Savannah’s real estate market for 2018 is as follows:
Airbnb occupancy rate: 59.7%
Median house price: $232,732
Airbnb rental income: $1,986
Investing in beach houses and vacation rental properties, in general, is growing and changing. The competition in real estate is fierce and succeeding in this industry means that you need to go above and beyond what the status quo calls for. Thus, professional photos for your rental property, a detailed listing description, immediate responses to inquiries from viewers and guests, professional experiences for tenants and much more are essential ingredients for succeeding in beach rental investing. In order for this to happen, you need to have a guide that has all the ins and outs of real estate investing and Mashvisor is the easiest option that is available at your fingertips.
To start your 14-day free trial with Mashvisor and subscribe to our services with a 20% discount after, click here.