Putting Words into Action
Nothing feels better as a real estate investor than putting your words into action. The ability to set morals and values for yourself, and then implement them, is just one attribute of the most successful real estate investors. In our previous blog, we gave you a list of the best places to buy vacation rental property in 2018.
Now, we plan to provide you with a guide. This guide aims to set you on your path to owning vacation rentals in the best places to buy vacation rental property investments.
Nominees of the Best Places to Buy Vacation Rental Property
Counting down from number 10, these are the top candidates for the best places to buy vacation rental property. We also included the median home value, along with the monthly rent.
This way, you can get a quick glimpse of what the price to rent ratios of the best places to buy vacation rental property might look like. The details of the city can be found in our blog “Counting Down 2018’s 10 Best Places to Buy Vacation Rental Property Investments.” We’re sure you’ll enjoy it!
Tucson, Arizona
Median Home Value= $134,900
Monthly Rent=$950
Daytona Beach, Florida
Median Home Value=$96,800
Monthly Rent= $961
Myrtle Beach, South Carolina
Median Home Value= $180,000
Monthly Rent= $975
Stroudsburg, Pennsylvania
Median Home Value= $136,000
Monthly Rent= $1,000
Kissimmee, Florida
Median Home Value=$131,200
Monthly Rent= $1,150
Cape Cod, Massachusetts
Median Home Value=$362,000
Monthly Rate= N/A
Haines City, Florida
Median Home Value= $130,400
Monthly Rate= $1,175
Rio, Florida
Median Home Value=$143,700
Monthly Rate= $1,264
Thousand Palms, California
Median Home Value= $164,400
Monthly Rate= $1,393
Port Salerno, Florida
Median Home Value= $153,800
Monthly Rate= $1,472
There you have it. The top 10 best places to buy vacation rental property investments in 2018!
The 5 Steps to Owning Vacation Rental Properties in the Best Places to Buy Vacation Rental Property Investments
Step One: Choose a Vacation Rental Property in the Best Places to Buy Vacation Rental Property Investments
This includes finding the right location, the investment property type most suitable for you, and figuring out which investment strategies are the most applicable. You can find a number of different investment properties by searching online or through a realtor. Both have their benefits.
Search Online
Using online platforms to find rental properties for sale allows you to search the world at your fingertips. This is a good screening method to find income producing properties that could match your criteria.
Check Out a Realtor
Realtors come in handy when you want to know more about the area they’re located in. They specialize in telling you the small details about the best places to buy vacation rental property investments. It’s their job!
Like we said, the online approach is a good screening method. Meaning DO NOT depend on it alone. Realtors come in handy to set up appointments to physically see the investment property. All that glitters online isn’t gold in person, so make sure you take a good look at your potential property investment.
These guys have a good idea of where specifically vacationers enjoy staying, giving you a local’s perspective. Realtors can give you property comparisons, giving you an idea of what real estate comps you have in the area. Having a realtor as a part of your real estate investment network is sure to come in handy.
Step Two: Mashvisor it Up
A tool that should also be a part of your investment network is Mashvisor’s analytics tools. Once you have an idea of the investment property you want, you should see how it would do financially.
In real estate investing, you want to make sure you are gaining positive cash flow, good rental income, maintaining high occupancy rates, and receiving satisfying returns on investment. Mashvisor is able to give you an accurate projection of all those real estate metrics and more.
With Mashvisor’s property analysis, you can get a solid idea if you have found your money maker or not. Whether you’re a beginner in real estate investing, or have the experience of the most successful real estate investors, Mashvisor is your tool.
To learn more about how we will help you make faster and smarter real estate investment decisions, click here.
You’ve found the best places to buy vacation rental property investments; allow us to help you in purchasing vacation rentals.
Related: The Use of Predictive Analytics in Real Estate Investing
Step Three: Do the Calculations- The Numbers Count
Of course, while you intend on purchasing vacation rentals that you and your tenants will enjoy, at the same time it needs to make sense financially. Do an investment property analysis (the sole reason of Mashvisor’s existence). With that, you can get an idea if you can afford the property, whether it’s occupied or not. This way, you can also figure out what measures you need to take to finance the investment property.
Take a look at vacancy rates in the best places to buy vacation rental property investments, then compare them to your monthly financing and operation costs. Again, as real estate investors, we aim for positive cash flow and wish to avoid negative cash flow. Once you get an idea of the operating costs and rental income, you can get an idea of which way it’s going to go.
Related: The 6 Hidden Costs of Owning Rental Property
Owning a vacation rental is all fun and games until someone gets hurt. That someone could be you if you don’t play your cards right. The cost-to-benefit cards that is. When you choose to invest in vacation rentals, you can expect costs to come along with your ownership. Costs like online listing fees from online vacation sites, potential hotel taxes, property taxes, insurance, utilities, management fees, and so on.
Step Four: Get The Financing Juices Flowing and Buy the Vacation Rental Property!
When you decide to buy a vacation rental property in one of the best places to buy vacation rental property, you have to keep in mind how you plan to pay for that bad boy. You can decide to buy it with cash or go the financing route.
Investment property financing comes in many different forms. Vacation rental properties are usually financed with a conforming loan, a portfolio loan, a multifamily loan or in some cases a short-term loan such as a hard money loan from hard money lenders.
Step Five: Chase the GREEN
When you’re on the road to making money in real estate, you have a number of paths to choose from to get there. They all reach the end goal: making a profit from your investment property.
Now, you can use the Mashvisor investment property calculator to get an idea of how your rental property investments will financially perform. However, you can use the best vacation rental property websites to put your vacation rentals out there and actually put the profit in your pocket. Introducing your rental property to all the eager vacationers out there is the way to go if you have hopes to maximize profits.
Some of the most popular ways to make money on your vacation rental investment is using Airbnb, VRBO, and other vacation sites. Instead of having to hire investment property management, you can manage the listings yourself with these vacation websites.
Related: Vacation Rental Websites: Comparing Airbnb, VRBO & Booking.com
You Got the 411, Go Find the Property!
You’ve taken the first step to maximizing your profits by choosing to invest in the best places to buy vacation rental property assets. These seasonal heavens are perfect to get some sunshine while still getting some green. You know what green we’re talking about.
These five steps to buying a vacation rental are the skeletal bones of real estate. By putting together all you know, along with Mashvisor’s data analysis, you’ll come out with a strong, healthy, real estate body! Use those muscles to invest in the best places to buy vacation rental property investments.
To start your 14-day free trial with Mashvisor and subscribe to our services with a 20% discount after, click here.
