How to Find the Best Vacation Rentals for Sale

Vacation rentals for sale have become increasingly popular with real estate investors all over the world. Such properties, which are rented out for no more than 30 days at a time, have the potential for generating a higher return on investment than long-term rental properties.

Here are several reasons why investing in vacation rentals for sale is a good idea:

• Higher rental incomes – Under the right conditions, vacation rentals can generate a higher income for owners than traditional rental properties.
• Diversification – If you own other types of investment properties, vacation rentals for sale can be a great addition to your portfolio. Asset diversification will help protect your portfolio from market volatility.
• A wide variety to choose from – Short-term rentals come in all sizes, shapes, and prices, ranging from mountain chalets to studio apartments or even tree houses.
• Tax benefits – Owners of vacation homes are allowed to deduct a percentage of their rental earnings from their income taxes.
• Availability of renters – Vacation rental marketplaces such as VRBO and Airbnb make it easy for investors to advertise their properties and find tenants.
• A free vacation home – Though your vacation home is primarily for real estate investment, you can also enjoy it occasionally without having to pay anything.

There are different types of vacation rentals for sale including multi-family homes, single-family homes, and condos. You need to consider the pros and cons of each type when looking for vacation rentals for sale.

Here are some guidelines on how to find vacation rentals for sale:

1. Network

One of the best ways of finding vacation rentals for sale is by networking widely. Through networking, you might find vacation rental property that other real estate investors don’t know about. You may even be able to buy it at a lower price. You can network at vacation rental investment clubs where members share information about properties for sale. If you don’t belong to any, you could join one for an annual membership fee of as little as $100.

However, it’s not just people directly involved in real estate that can provide leads to great investments. Family and friends can also be useful sources of information about potential investment properties. They might know someone who is willing to sell a vacation home quickly and at an affordable price. Professional contacts such as contractors, attorneys, and accountants can also come in very handy for prospecting.

2. Check Online

A simple Google search using terms such as ‘real estate for sale’, ‘for sale by owner’, ‘short sale’, and ‘foreclosure’ will reveal numerous websites containing listings of investment properties for sale. Alternatively, you could just visit sites such as Mashvisor.com directly to find not only profitable properties but also the best places to buy vacation homes. This site comes with the following tools:

• Heatmap analysis tool – Real estate investors can use this tool to find neighborhoods with the most lucrative vacation rentals. You can search for neighborhoods using filters such as rental income, listing price, cash on cash return, and Airbnb occupancy rate.

Mashvisor’s Heatmap Analysis Tool

Related: 8 Best Cities for Airbnb Investment in 2019

• Property finder – This tool uses the latest machine-learning algorithms and predictive analytics to help investors find rental properties that match their search criteria. By looking at people’s behavioral, financial, and social patterns, the AI can then give suggestions about the best properties to invest in. It uses filters such as miles, location or city, budget, rental strategy, number of bedrooms and number of bathrooms.
• Investment property calculator – With an investment calculator, you don’t have to manually calculate metrics for real estate listings. The Mashvisor rental property calculator provides calculations for cash on cash return, capitalization rate, and cash flow. Additional features include neighborhood analysis, investment property analysis, and optimal rental strategy.

Start looking for a profitable vacation rental for sale today using these tools and more.

3. Check Print Media

Since some properties might not be advertised online, be sure to check print media for local listings of vacation rentals for sale. If you are looking for realtor-listed properties and ‘for sale by owner’ homes, newspapers could be a great source of information. Check the large publications for your region, as well as smaller newspapers targeting specific communities. Besides newspapers, you should also look at local real estate magazines and journals.

Related: Where Can You Find Airbnb Properties for Sale?

4. Visit Property Auctions

You can find a great deal on vacation rentals for sale at property auctions. There are different types of auctions to consider:

• Online auctions – Everything, including bidding, is conducted on an online platform.
• Sheriff sale auctions – This kind of auction is carried out in the county’s courthouse, hall of records, city hall or sheriff’s office. Such auctions usually involve the sale of foreclosures to the public.
• Private company auctions – This type of auction is usually well advertised and held at a local conference center or hotel.

Related: A Quick Guide to Buying a Property at Auction

5. Work with a Real Estate Agent

Real estate agents are usually well informed about investment opportunities in their area. They can not only help you find an Airbnb vacation home rental but could also help negotiate a favorable deal. A Google search using the term ‘real estate agent [your area]’ will give you an idea of the agents available in your target neighborhood. You could also check local property listings to find contacts of agents. Attending open houses and real estate seminars is another great idea for real estate investors to meet agents face to face.

A Few Final Tips

Unlike traditional rentals, vacation rentals are usually dependent on the season. For instance, a rental located next to a ski resort will be in demand during winter seasons. On the other hand, a beach house will attract more people in the summer. Therefore, when looking for vacation rentals for sale, be aware of what to expect in peak seasons and low seasons. You should also find out what the monthly expenses might be for your investment property. Since running a vacation home involves a lot of work, you should also consider the costs of hiring a property manager.