Top 5 Rental Properties This Week: Jan 24th-30th, 2021
In the second episode of the Mashvisor Real Estate Podcast: Top 5 Rental Properties This Week Mike Richardson, the star of the Mashvisor Consultancy Team, looks at and analyzes 5 of the absolutely most profitable investment properties from across the US housing market. These income properties are handpicked by Mike to generate positive cash flow and above-average return on investment as traditional or Airbnb rentals from the start.
Real Estate Podcast Transcript
This is the Mashvisor Real Estate Podcast: Top 5 Rental Properties This Week, Episode Number 2.
Hey, everyone! I am Mike Richardson, Senior Investor Consultant and Product Specialist here at Mashvisor. Welcome to the second episode of our podcast: Top 5 Rental Properties This Week.
If you’re looking for the most lucrative opportunities to make money from rental properties in the US market, you’ve come to the right place. In case this is the first time that you listen to our Mashvisor podcast, let me tell you a little bit about it. As part of my responsibilities here at Mashvisor, every week I use the Mashvisor investment property analysis platform to search through thousands of residential real estate listings to find the most profitable opportunities for my investor clients. I look at different markets, different price ranges, property types, rental strategies such as Airbnb and traditional. I’ve been doing this for years, so I thought: Why should I limit these properties to my investor clients only? Why shouldn’t I share them with even more real estate investors, just like you?
So that’s how the idea of the Top 5 Rental Properties This Week podcast came about.
But before we get started with this week’s winning properties, I’d like to let you know that all these properties are currently available for sale. Like the majority of the properties listed on Mashvisor, these are MLS listings, and they make up some of the absolutely most profitable investment properties across the US market. I’ve looked at literally thousands of listings to select these top 5 gems.
If there is any particular property that you wanna check out, you can find the link to the listing on our website in the show notes below. Please note that Mashvisor doesn’t participate in the sale of these properties, and we don’t make any money from them. All we do is simply analyze their investment potential with our machine-learning algorithms powered by artificial intelligence and big data.
So, without further ado, let’s look at the top 5 rental properties this week.
For starters, we have a gorgeous single-family home in the city of Destin, Florida. The address is 347 Skyler Run. Zip code is 32541. The asking price for the home is $385,000. It has 3 beds, 2 baths, and 1,779 sq ft.
What really stood out about this property is based off our analytics on the Destin market, the average rental income in the areas has grown up by 16% in the last month. And occupancy rate is rising as well. So we started exploring Destin to pick out a great opportunity for you, guys.
This property has the potential to generate $3,440 in rental income per month, using an Airbnb strategy. It has monthly expenses at $1,631, putting its cap rate at 5.64%, with a 53% stable Airbnb occupancy rate.
What’s great about markets like Destin is that there are local vacation rental management companies that are extremely helpful in helping you grow your Airbnb property. So we see this property having the capability of doing much better through its rate of return and expanding into a double-digit.
To give you a better picture of the property, if you were to purchase this home and put 20% down over a 30-year fixed mortgage at interest rate averagely at 3%, this property will easily be able to pay off its mortgage, its recurring expenses, cash flow, and still have room to generate more cash flow down the road. So it’s a great investment property for the investors who’re looking into a possible Airbnb and interested in the State of Florida.
Second on our list is for investors who are considering looking and exploring for traditional investment properties. This is a brand new single-family home in the city of Cape Coral. It’s newly renovated, in 2021, with 4 beds and 2 baths. The address is 2409 NW 29th St. The zip code is 33993. It has 1,449 sq ft. The average price per sq ft is $142. So, great, ready property for investors who’re considering renting through a traditional strategy.
Properties like this in the area have an average rental income of $1,179. This property has the rental value at $1,669. So $500 above the average rental value.
It has monthly expenses at $471, putting its cap rate at 6.98%. With a very low vacancy rate, this property will be an outstanding property for investors who are looking at traditional rentals. To give you a closer look, if you were to decide to purchase this home and put 20% down over the 30-year fixed mortgage, this property will pay off its mortgage, its recurring expenses, and still cash flow a stable amount of $524 per month. So it’s a great property that still has the level of expansion and appreciation down the road. For investors who are looking into a traditional strategy, this is a great property for you.
Third on our list is a property in Tennessee. It’s a single-family home, and the address is 676 Rocky Flats Road. It’s in Sevierville, Tennessee, and the zip code is 37722. The asking price for this 2,040 sq ft home is $270,000, providing you with 3 beds and 2 baths.
This is one of the best destinations for vacation rentals in the country. And we’ve seen so many investors looking into the area, specifically looking for a vacation rental. With average rental income in the area of $3,528, this property beats the average at $4,230 per month, with $1,607 in recurring expenses, yielding an amazing cap rate at 11.66%. Again, that’s a $270,000 home with almost 12% rate of return on this property.
It has a 64% Airbnb occupancy rate. Adn a market like this is very similar to Destin, where there are local vacation rental management companies that we’ve seen help investors expand their property even further.
So this is a property that if you decided to purchase and place 20% down over a 30-year fixed mortgage at 3%, it’ll pay off its monthly mortgage, it’ll pay off its recurring expenses, and cash flow almost $1,800 per month. That’s a 33.18% cash on cash return. An outstanding property for investors who’re looking into Airbnbs. So feel free to go to Mashvisor and look for this property.
Fourth on our list is in Savannah, Georgia. It’s a single-family home with address of 210 E 39th Street. The zip code is 31401. The asking price for this property is $349,900. It has 4 beds, 3 baths, 1,776 sq ft.
What’s great about this location is we have so many people that are visiting Savannah, looking to use vacation rentals for their experience. And this property stands out because it’s a historical property located in a great area of town, in mid-town, that’s a suitable fit for investors who are looking at an Airbnb.
The average Airbnb income in the area is $2,846, but this property is able to generate $4,146 in Airbnb rental potential, putting it at an outstanding advantage comparing to other Airbnb properties in the area. It’s recurring expenses are $1,843.
If you were to decide to purchase this property and put 20% down, same what we did in our other examples, this property will be able to cash flow almost $1,200 per month, putting its cap rate at almost 8%, with a great and stable occupancy rate at 61% and a cash on cash return of 17.63%. So this is a property that could be a great investment property for investors who are looking at a possible Airbnb.
These are the top 4 that really stood out this week. But I wanted to save the best for last.
It’s one of those unique Airbnb properties that you see on the Airbnb website, with a very interesting design, interior design as well, making it a great fit for investors who’re looking at a possible Airbnb opportunity.
The asking price for this home is $588,700. With 4 beds, 3 baths, 1,908 sq ft, this property is an outstanding fit. The average rental Airbnb income in the neighborhood is at $3,000, but this property is able to do an outstanding rate of return, generating $8,762 through an Airbnb. That’s over 250% in rental value that you could generate through this property. It has recurring expenses at $3,970, with a great cap rate of 9.77%, with a stable Airbnb occupancy rate at 50%.
This is a property that if you decided to purchase and find a great Airbnb property, you’d easily to be able to put 20% down on a property like this. It’ll pay off its mortgage, its recurring costs, and cash flow almost $3,000 a month. That’s $36,000 in annual cash flow at the end of the year. Most investors are looking for properties that are able to generate that type of income instead of just cash flow. So you’re looking at a property that has the potential of 27.35% for a cash on cash return.
I thought this is one of the best properties I’ve seen. And I wanted to recommend this property for investors who’re looking for a great, outstanding, unique Airbnb property. So feel free to go on the Mashvisor website and take a look at the property and do some of your own analysis in the area.
So, guys, these are the top 5 rental properties within their price ranges. I’ve searched through dozens of markets that I know perform well, and I’ve looked at thousands of properties to short-list these rentals. Whether you buy in cash or take out a loan, you’ll be able to start generating positive cash flow from any of these rental properties right away. You won’t need to wait for years for appreciation to happen in order to make money with these investment properties. Remember that you can find a link to each of these properties in the episode show notes below.
Before I go, I want to offer you a special gift. With promo code TOP5, you get a 15% discount on quarterly and annual subscriptions to Mashvisor, and that’s forever. So instead of paying the standard $50/month for access to our super user-friendly real estate investment platform, you can pay as little as $42/month with that promo code. Again, that is promo code TOP 5, you’ll be able to save 15% on the most trusted source for real estate data and analytics in the US market. In addition, you’re gonna get a 7-day free trial to make sure that Mashvisor is everything you need to start making profitable real estate investment decisions without previous experience. We put beginner investors on an equal footing with those who have spent decades analyzing markets and analyzing properties.
That’s all from me today. I hope to hear our next podcast next week. Meanwhile, happy investing!
To listen to more episodes of the Mashvisor Real Estate Podcast, click here.