Finding investment properties for sale should not be your only criterion in finding rental properties in the location of choice.
The best investment properties include a nice bargain, but they also have other factors to keep in mind, such as having a business plan and an optimal real estate strategy, and finding the right location that matches your long term business plan. If you want to invest in an Airbnb rental property, location is everything alongside the city’s Airbnb regulations and laws. Not every city favors an Airbnb rental business and the same goes for traditional real estate investing. In a nutshell, your business goals should help you figure out where to buy investment property, respective to the location.
Related: How to Find the Best Airbnb Properties for Sale
The Best Investment Properties for the Best Vacation Home Rentals
For this blog post, we focus on finding investment properties for sale that make the best vacation home rentals in the country. But before we give you this list, let’s define what the best investment properties for sale look like for profitable vacation home rentals.
1. The best investment properties for sale are in the best location
This is a no-brainer! Having the right location for your vacation home rental is crucial in order to capitalize and make big wins in the long term. To help you hone in on the right areas, use Mashvisor’s heatmap tool to give you a visual representation of the profitable areas for vacation rentals across the country in just a matter of minutes.
2. The best investment properties for sale have the best Airbnb Listing
Airbnb is a great business model for vacation home rentals and most investors/landlords take advantage of this site to maximize their exposure as well as their profits. Make sure your Airbnb listing is updated and conveys accurate info about your rental. But never deceive Airbnb guests, it will come back to haunt you later!
3. The best investment properties for sale have an optimal pricing strategy
Another important aspect of a successful Airbnb business boils down to your dynamic pricing strategy. Do not have one listing price throughout the year; play around with the prices, respective to the season as well as your competitors.
4. The best investment properties for sale hire the best property management team
To maintain a successful Airbnb business, we highly recommend you hire a property management team to take care of your Airbnb listing, your Airbnb rental property, and your Airbnb guests.
5. The best investment properties for sale reap a surplus of cash flow returns
If your vacation rental home isn’t making you money or paying the bills, then you are in the wrong business. If this is the case, figure out where the problem lies to turn the situation around or consult a real estate professional to help you turn your finances around.
The Best Places to Buy a Vacation Rental Property in 2018
It should come as no surprise that the best places to buy a vacation rental property this year are mostly located in Florida. Nevertheless, here is the list of the best places across the US for buying a vacation rental for the highest ROI.
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1. Panama City Beach, Florida
- Median Property Price: $258,448
- Airbnb Rental Income: $2,354
- Airbnb Cash on Cash Return: 5.85%
- Airbnb Occupancy Rate: 61%
Related: The 7 Best Places to Buy a Vacation Home in Florida
2. Chicago, Illinois
- Median Property Price: $447,549
- Airbnb Rental Income: $2,726
- Airbnb Cash on Cash Return: 1.11%
- Airbnb Occupancy Rate: 54%
3. Napa, California
- Median Property Price: $1,092,489
- Airbnb Rental Income: $6,627
- Airbnb Cash on Cash Return: 5.10%
- Airbnb Occupancy Rate: 51%
4. Memphis, Tennessee
- Median Property Price: $243,531
- Airbnb Rental Income: $2,498
- Airbnb Cash on Cash Return: 3.34%
- Airbnb Occupancy Rate: 47%
5. Destin, Florida
- Median Property Price $636,221
- Airbnb Rental Income: $3,928
- Airbnb Cash on Cash Return: 4.10%
- Airbnb Occupancy Rate: 57%
6. Kissimmee, Florida
- Median Property Price: $220,000
- Airbnb Rental Income: $2,110
- Airbnb Cash on Cash Return: 6.8%
- Airbnb Occupancy Rate: 65%
7. Fort Walton Beach, Florida
- Median Property Price: $325,000
- Airbnb Rental Income: $3,850
- Airbnb Cash on Cash Return: 13.4%
- Airbnb Occupancy Rate: 60%
8. Ocean City, Maryland
- Median Property Price: $407,216
- Airbnb Rental Income: $2,079
- Airbnb Cash on Cash Return: 11.1%
- Airbnb Occupancy Rate: 43%
9. Myrtle Beach, South Carolina
- Median Property Price: $190,000
- Airbnb Rental Income: $2,250
- Airbnb Cash on Cash Return: 8.5%
- Airbnb Occupancy Rate: 48%
10. Gatlinburg, Tennessee
- Median Property Price: $295,382
- Airbnb Rental Income: $2,984
- Airbnb Cash on Cash Return: 6.49%
- Airbnb Occupancy Rate: 73%
11. Virginia Beach, Virginia
- Median Property Price: $374,270
- Airbnb Rental Income: $3,568
- Airbnb Cash on Cash Return: 4.43%
- Airbnb Occupancy Rate: 53%
12. Orange Beach, Alabama
- Median Property Price: $469,000
- Airbnb Rental Income: $3,190
- Airbnb Cash on Cash Return: 4.7%
- Airbnb Occupancy Rate: 50%
13. San Diego, California
- Median Property Price: $824,006
- Airbnb Rental Income: $3,609
- Airbnb Cash on Cash Return: 1.76%
- Airbnb Occupancy Rate: 62%
Related: Four Things to Consider Before Purchasing an Airbnb Investment Property
Conclusion
Finding investment properties for sale is only half the battle; make sure the whole formula adds up by factoring in a prime location favorable for real estate investing and high appreciation long term. Earning a high return on investment properties for sale boils down to your due diligence and research beforehand. Use tools like Mashvisor’s heatmap and property finder tool to streamline your time and research in less time for less cost. Remember, it is not about how many hours you put in, it is about how you are using the resources available to you to maximize your revenue in the shortest time possible.
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