The ability to buy vacation homes has always been associated with wealth. This has drastically changed since the rise in interest in real estate investments, particularly from young entrepreneurs. Now, vacation home rentals are associated with good financial planning and creating an investment portfolio. According to Forbes, Des Moines, IA is not only the land where the tall corn grows; it also has a rising real estate market that offers great returns for future investments. If you have ever asked yourself “When should I buy a vacation home?” the time to start investing is now.
The rising Iowa real estate market is offering real estate properties that allow investors to increase their income while enjoying the perks of a vacation home.
What to Look for When Investing in Vacation Home Rentals as a Real Estate Investor
Many cultural and vacation attractions are located in Des Moines. It’s the home of many theaters and art venues. You can go for some live music and enjoy a nice meal any day of the week, not to mention that the city is famous for its parks and natural beauty. Furthermore, buying an investment vacation home in Des Moines entails careful studying of a property’s attributes. Look for the following qualities when buying a vacation home in Des Moines, IA:
Décor and interior design of vacation home rentals
The surrounding of the property and the general environment of the place should be reflected within the interior ambiance of the place. Guests look for a comfortable consistent feel when renting a vacation home. Therefore, it’s your duty as an Airbnb host to give the guest a satisfactory experience.
The type of Airbnb guest you wish to cater to
The type of guest your property will have is determined by your property’s size and location. Vacation home rentals located on a lake would attract different guests than investment properties in downtown Des Moines. Meanwhile, buying a vacation home that accommodates 6 guests or more is likely to attract families or larger groups of tourists. On the other hand, buying an apartment on 18th street is going to attract a different type of Airbnb guest than buying a property near Chautauqua Park.
Location affects vacation home rentals the most
Acknowledging the effect of the location of your investment property on the occupancy rate is a must, as real estate investors need to make sure the attractions near vacation home rentals are enough to generate a substantial cash flow and keep interests in properties at a constant high year-round.
The real estate value of your property: investment property analysis
As all real estate investment properties, vacation home rentals are not considered to be only second homes; real estate investors seek to generate a sizable rental income through them. Real estate investors are advised to conduct a thorough investment property analysis due to the changing nature of real estate. This helps the investor know all that he needs to know to ensure the long-lasting profitability of the property. With Mashvisor’s investment property analysis, a real estate investor can know all the metrics that affect the value of the property such as occupancy rate, cap rate, and cash on cash return.
So, What are the Best Places to Buy Vacation Home Rentals in Des Moines?
Meredith area is a diversified neighborhood that’s only a few minutes away from Merley Hay Mall, Restaurants, and downtown. Home values in the neighborhood have increased around 5% in the past year, and are expected to increase even further in the upcoming years. Buying an investment property in such a location whether for a long-term rental or a short-term rental is a wise investment decision for investors in 2018.
Union Park is a place that attracts young adults and young families. It is close to nightlife attractions in Des Moines. The area is becoming a hub for thriving local shops and businesses. The crime rate is one of the lowest in Polk County as the residents are mainly young generations of employees and professionals. Real estate prices have been consistent in the area but expected to increase between 3-7 % by 2020.
The greater southside is vibrant with restaurants and pizzerias. As the name states, it’s located in the south of Des Moines. Hotels and apartment buildings seem to dominate the nature of the neighborhood; this makes the neighborhood a very attractive option for real estate investors. When talking about Airbnb Des Moines, the greater southside is the area that comes to mind, as public transportation is easily accessible throughout the area.
Downtown Des Moines
It’s the central district of Des Moines, and it’s listed as one of the top 5 up-and-coming downtowns by fortune.com. It’s thriving with businesses and financial firms with impressive campuses, not to mention that it also has lots of restaurants, entertainment venues, and bars. The area is connected by a free downtown shuttle service. What makes the area an attractive option for investing in real estate is the infrastructure improvement and reshaping of the area. Buying vacation home rentals in the area is strongly advised as tourists can enjoy a metropolitan experience while enjoying the green parks and areas of the city.
Buying an investment property in Des Moines is considered to be a wise investment choice. However, many factors need to be taken into consideration to ensure profitability. Deciding on the best places to buy vacation home rentals in Des Moines requires in-depth research just like any other location. Real estate investors must utilize Airbnb Profitability calculators’ data to come up with the most suitable Airbnb rental strategy.
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