How to Find the Best Vacation Rentals for Sale

Vacation rentals for sale are becoming an increasingly popular choice among real estate investors across the US market for good reasons.

When home-sharing online platforms like Airbnb appeared more than a decade ago, many short term rental owners started earning a substantial income from the investment strategy. Airbnb rentals typically come with the potential to generate a higher return on investment than long term rentals while offering additional benefits like flexibility and personal use.

Table of Contents

1. How to Find Vacation Rentals for Sale
2. Top Locations for Vacation Rentals for Sale
3. Starting a Short Term Rental Business

As a result of the advantages, more and more beginner and experienced investors got attracted to such a profitable rental strategy. However, the increased competition raised an important question: How do you find the best short term rentals for sale?

In this article, we will go through the four steps that it takes to locate top-performing opportunities. We will show you how the Mashvisor short term rental analytics platform can help you speed up and optimize your real estate investment decisions each step of the way. Lastly, we will rank the 10 best US markets for this rental strategy based on up-to-date Mashvisor data analysis.

Let’s get started right away so that you can become a successful vacation rental host in no time!

How to Find Vacation Rentals for Sale

One of the most challenging steps in short term rentals investment is finding the right investment property. You need to consider a number of factors before making a decision.

The most important one is the location of your income property, as it can make or break your investment. Once you’ve chosen the right location, you can start searching for Airbnb for sale and then perform a comprehensive real estate analysis to compare which one would make the best investment.

Following is a step-by-step guide on how to find the best market and the top properties for sale for this rental strategy, whether in Florida, Nevada, North Carolina, or any other state:

1. Choose a Good Vacation Rental Market

The first step in finding optimal short term rentals for sale is selecting an appropriate market. One of the most important factors to consider is how popular a certain location is as a tourist destination. 

Ideally, you want to go for a city that welcomes visitors throughout the year. Focus on places with attractions both in the summer and in the winter to avoid a low season, like Florida beach towns.

If you’re a beginner investor, it’s recommended to choose a market with affordable real estate values so that you can make the down payment and the monthly mortgage payments.

Furthermore, the property purchase price factors in all formulas for return on investment, including the cash on cash return and the cap rate, and the lower the price, the higher your profit.

If you’re a beginner who is feeling overwhelmed and is not sure where to start, you can check out the Markets and Airbnb Rentals sections of the Mashvisor real estate blog. There, you can always find up-to-date rankings of the best states and cities for vacation rentals based on different factors like affordability, occupancy, daily rates, and ROI.

Moreover, since we’re talking about vacation rentals, you cannot ignore the local short term laws. Make sure to choose a location where there are no prohibitive regulations and where there have been no talks of introducing such rules. For instance, Florida beach towns have more conducive laws than California ones.

You can refer to the Mashvisor short term rental regulations guide for a quick summary of the applicable laws in all major markets. You’ll also find links to more detailed information on the local authority websites.

2. Select an Optimal Neighborhood Within the Market

While the city in which you buy a vacation rental for sale is important, the specific area within the city is equally important, if not more. After all, not all neighborhoods in a city are created equal for real estate investment purposes.

When you choose the area in which to buy a short term rental, focus on factors like:

• Proximity to tourist attractions like a Florida beach
• Walkability
• Access to public transportation
• Dining, shopping, and entertainment opportunities
• Safety
• Overall vibe

Your Airbnb guests would want to have a convenient and trouble-free stay while on a trip.

In addition, you need to look at the Airbnb data. You want a neighborhood with relatively low real estate prices, high daily rates and revenue, strong occupancy rates, and, most importantly, above-average profitability. Just choosing a beach location in Florida does not guarantee success, so you need to conduct diligent analysis.

Luckily, Mashvisor provides the perfect tools to help you identify such areas in any US housing market.

Mashvisor Heatmap Analysis

Property investors can use the real estate heatmap tool available on our platform to find the neighborhoods with the most lucrative vacation rentals. You can locate areas using different filters, such as median property price, average Airbnb rental income, cash on cash return, and Airbnb occupancy rate.

Low values are marked in white, while high values are marked in dark blue, with medium values ranging in between. In this way, you can easily identify neighborhoods with affordable rental prices and strong ROI metrics. This is at the core of Airbnb market research.

It’s important to note that the said analysis, as well as any other data available on the Mashvisor website, is based on the performance of actual rental listings.

Mashvisor Neighborhood Analysis

After choosing a few areas that cover your investment needs and expectations, you can deepen your local market analysis with the Mashvisor neighborhood analysis pages. There, you will find a summary of all the real estate and vacation rental data and analytics you need to make an informed decision on the best area to buy in.

Specifically, you will get the Mashmeter score of the overall ranking of the neighborhood for rental investment purposes. You can also access the median property price, average rental income, cash on cash return, and occupancy rate. Moreover, you can find the optimal property type and size for boosting demand.

To start searching for the best areas to invest in vacation rentals for sale, sign up for a 7-day free trial of Mashvisor.

3. Search for Available Rentals for Sale

After you’ve selected a market in which to buy a property, it’s time to start looking for real estate listings for sale. There are a number of channels you can use for this purpose.

Channel #1: Use Your Network

One of the best ways to find vacation rentals for sale is by networking. You may even be able to buy your desired property at a lower price.

You can network at real estate investment clubs where members share information about rentals for sale. If you don’t belong to any, you can join various online and offline groups, sometimes even for free.

Moreover, it’s not just the people directly involved in real estate who can provide leads to great investments. Resort to your personal network, like friends and family, to locate off market properties that other real estate investors don’t know about. They may know someone willing to sell a house quickly and at an affordable price.

In addition, professional contacts, such as contractors, attorneys, and accountants, can also come in handy for prospecting.

Last but not least, you can find rentals for sale by owner (FSBOs). It might be best to buy directly from them as it can help you save time negotiating with a middleman and get a better purchase price.

Channel #2: Check Online

Another place to look for rental properties for sale is the internet. A simple Google search can reveal numerous websites with active listings. Try searching for terms such as “real estate for sale,” “for sale by owner,” “short sale,” and “foreclosure.”

Alternatively, you can visit online marketplaces like Mashvisor directly to find profitable rentals. The platform offers the following tools in this regard:

Mashvisor Property Finder

The Mashvisor Property Finder uses the latest AI-based machine learning algorithms and predictive analytics to help investors find profitable rentals that match their search criteria. By looking at people’s behavioral, financial, and social patterns, the AI can give suggestions about the best rentals to invest in.

You can make use of filters like city, distance from the city, budget, number of bedrooms, and number of bathrooms to customize your property search. Within seconds, you’ll gain access to all available listings that match your criteria, organized from the most profitable one down.

The more you interact with the smart Property Finder, the better the results will get as it learns about your preferences.

Mashvisor Investment Property Search Engine

To find the best short term rentals for sale, you can also use the Mashvisor search engine. You can enter your criteria, including city, neighborhood, budget, financing method, rental income, return on investment, and others, to access MLS listings that match your exact expectations.

You can organize the results based on different factors to get the top-performing rentals for sale on top of your search results. Moreover, each listing comes with detailed rental property analysis to show exactly how it will perform if rented out on a short term basis. We’ll come back to this in a bit.

Channel #3: Check Print Media

Since some properties might not be advertised online, make sure to check print media for local listings of short term rentals for sale. If you’re looking for realtor-listed rentals and FSBOs, newspapers can be a great source of information.

Check the major 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. But keep in mind that the print media method is becoming less and less popular and effective, being replaced by online property marketplaces.

Channel #4: Visit Property Auctions

You can find a great deal on off market properties available for sale at real estate auctions. There are different types of auctions to consider:

• Online auctions: With online auctions, everything is conducted on an online platform, including the bidding process. You can easily find rentals for sale out of state.
• Sheriff sale auctions: A sheriff sale 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. You will need to attend in person or send a proxy.
• Private company auctions: Such types of auctions are usually well-advertised and held at a local conference center or hotel. Again, you need to attend the said events in person.

Channel #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 rental but can also help negotiate a favorable deal. A Google search using the term “real estate agent in [your area]” or “top real estate agents near me” will give you a list of agents available in your target neighborhood.

Alternatively, you can also check local property listings to find the contact information of agents. Attending open houses and real estate seminars is another excellent idea for investors to meet with different agents and brokers personally.

Yet, you can check out the Mashvisor real estate agent directory to locate the best realtors in your selected market.

4. Conduct Diligent Rental Property Analysis

The fourth and last step in finding vacation rentals to purchase is to analyze their investment potential. Just because a property is located in a top market, like Florida, doesn’t make it a profitable opportunity.

Performing investment property analysis requires a lot of time to collect the necessary data and run the calculations. But you can use another one of the Mashvisor real estate investment tools to optimize the process.

Mashvisor Investment Property Calculator

With an Airbnb profit calculator, you don’t need to calculate metrics manually to decide if a for sale listing will generate good ROI. Our rental property calculator provides readily-available estimates of:

• Startup costs
• Financing method
• Operating expenses
• Rental income
• Occupancy rate
• Cash flow
• Cap rate
• Cash on cash return

All Airbnb data analysis is based on the performance of similar rentals in the area, known as rental comps. Nevertheless, you have the option to change and adjust any number if you think you will perform differently from the competition. Any adjustments you make will be immediately reflected in the analysis and all numbers will be recalculated.

Mashvisor Rental Comps

Importantly, all the estimates and forecasts provided by the Mashvisor real estate calculator are based on the performance of active Airbnb listings in the area. As we use short term rental comps to predict how a property is expected to perform if listed on Airbnb, the analysis is highly accurate and reliable.

Importantly, for all rentals that you analyze using the Mashvisor platform, whether located in Florida, California, Virginia, or anywhere else, you get access to the actual comps. In this way, you can see exactly what results comparable rentals are able to drive in your selected market.

Top Locations for Vacation Rentals for Sale

As we explained above, choosing the right location for your investment property is crucial as it can significantly affect your profitability. The best short term rental markets are those close to tourist attractions and are visited by guests all year round.

For example, buying Florida vacation rentals for sale can be a good idea since the state enjoys a warm climate most days of the year. If you buy vacation rentals near a Florida beach, you’ll most likely get a high occupancy rate.

Based on Mashvisor’s data as of February 2023, here are the top locations for Airbnb rentals for cash on cash return (arranged from highest to lowest):

Note: For the ranking below, we’ve focused on markets with a minimum of 100 active Airbnb listings and a median property price below $1,000,000. However, these locations might face different short term rental laws. It’s your responsibility as an investor and a host to check the local regulations before buying a property to turn into a vacation rental. You can use the Mashvisor guide referenced above.

1. Northlake, IL

• Median Property Price: $315,829
• Average Price per Square Foot: $216
• Days on Market: 107
• Number of Vacation Rental Listings: 116
• Monthly Vacation Rental Income: $4,151
• Vacation Rental Cash on Cash Return: 7.94%
• Vacation Rental Cap Rate: 8.08%
• Vacation Rental Daily Rate: $169
• Vacation Rental Occupancy Rate: 54%
• Walk Score: 33

Northlake, Illinois is the top short term rentals location, offering exceptional city-level ROI of nearly 8%. It is known as The City of Friendly People, which is enough to make everyone want to visit. The town is home to a vibrant community and offers beautiful parks, nice gardens, and numerous opportunities for outdoor activities.

2. Columbia Heights, MN

• Median Property Price: $297,238
• Average Price per Square Foot: $151
• Days on Market: 47
• Number of Vacation Rental Listings: 317
• Monthly Vacation Rental Income: $3,761
• Vacation Rental Cash on Cash Return: 7.92%
• Vacation Rental Cap Rate: 8.06%
• Vacation Rental Daily Rate: $160
• Vacation Rental Occupancy Rate: 58%
• Walk Score: 82

Columbia Heights also provides outstanding profitability opportunities for short term rental hosts. In 2016, it received the All-American City Award. Columbia Heights combines the best of both worlds: a small town community with close proximity to Minneapolis.

3. Bellwood, IL

• Median Property Price: $250,612
• Average Price per Square Foot: $218
• Days on Market: 87
• Number of Vacation Rental Listings: 173
• Monthly Vacation Rental Income: $3,809
• Vacation Rental Cash on Cash Return: 7.92%
• Vacation Rental Cap Rate: 8.07%
• Vacation Rental Daily Rate: $164
• Vacation Rental Occupancy Rate: 62%
• Walk Score: 83

Bellwood, Illinois is located just a few miles away from Chicago. The small town benefits from a suburban feel. It hosts multiple parks and bars, attracting visitors from far and wide, frequently choosing short term rentals over other hospitality options.

4. Bridgeton, MO

• Median Property Price: $272,978
• Average Price per Square Foot: $151
• Days on Market: 46
• Number of Vacation Rental Listings: 120
• Monthly Vacation Rental Income: $3,330
• Vacation Rental Cash on Cash Return: 7.60%
• Vacation Rental Cap Rate: 7.74%
• Vacation Rental Daily Rate: $154
• Vacation Rental Occupancy Rate: 58%
• Walk Score: 3

Bridgeton, Missouri serves as a transportation hub, so it attracts not only tourists but also business travelers. The town is located within the Greater St. Louis area and is home to numerous profitable short term rentals.

5. Rileyville, VA

• Median Property Price: $332,031
• Average Price per Square Foot: $192
• Days on Market: 15
• Number of Vacation Rental Listings: 153
• Monthly Vacation Rental Income: $3,733
• Vacation Rental Cash on Cash Return: 7.57%
• Vacation Rental Cap Rate: 7.69%
• Vacation Rental Daily Rate: $235
• Vacation Rental Occupancy Rate: 55%
• Walk Score: 10

Rileyville, Virginia is yet another place that offers great opportunities to buy vacation rentals this year. The location is best known for its nature and outdoor sports activities. The Shenandoah River and the Nelson Run are located there. Rileyville boasts numerous hiking trails.

6. Maywood, IL

• Median Property Price: $219,313
• Average Price per Square Foot: $156
• Days on Market: 96
• Number of Vacation Rental Listings: 327
• Monthly Vacation Rental Income: $3,066
• Vacation Rental Cash on Cash Return: 7.19%
• Vacation Rental Cap Rate: 7.38%
• Vacation Rental Daily Rate: $160
• Vacation Rental Occupancy Rate: 59%
• Walk Score: 58

Maywood, Illinois is a village within the Chicago metropolitan area. The place offers multiple tourist attractions, making it a good place to invest in short term rentals. Maywood benefits from low real estate prices, so it’s affordable even for beginner investors.

7. Bar Harbor, ME

• Median Property Price: $590,000
• Average Price per Square Foot: $402
• Days on Market: 58
• Number of Vacation Rental Listings: 297
• Monthly Vacation Rental Income: $5,896
• Vacation Rental Cash on Cash Return: 7.13%
• Vacation Rental Cap Rate: 7.19%
• Vacation Rental Daily Rate: $316
• Vacation Rental Occupancy Rate: 64%
• Walk Score: 77

Bar Harbor, Maine is a resort town providing access to the Acadia National Park. Cadillac Mountain, Sand Beach, and the Shore Path are popular tourist destinations both for visitors from the state and outside the state. Short term rentals in Bar Harbor benefit from high occupancy.

8. Robbinsdale, MN

• Median Property Price: $333,943
• Average Price per Square Foot: $136
• Days on Market: 54
• Number of Vacation Rental Listings: 351
• Monthly Vacation Rental Income: $3,802
• Vacation Rental Cash on Cash Return: 7.08%
• Vacation Rental Cap Rate: 7.19%
• Vacation Rental Daily Rate: $164
• Vacation Rental Occupancy Rate: 57%
• Walk Score: 73

Robbinsdale, Minnesota is nicknamed Birdtown. Some of its most popular tourist attractions include Spanjers Park, Robbin Gallery, Eagles Nest Lounge, and Minnesota Makers. Vacation rentals in Robbinsdale come with a high return.

9. Columbia, MO

• Median Property Price: $311,780
• Average Price per Square Foot: $146
• Days on Market: 85
• Number of Vacation Rental Listings: 253
• Monthly Vacation Rental Income: $3,090
• Vacation Rental Cash on Cash Return: 7.01%
• Vacation Rental Cap Rate: 7.14%
• Vacation Rental Daily Rate: $136
• Vacation Rental Occupancy Rate: 58%
• Walk Score: 30

Columbia is a city in Central Missouri and the largest city in our ranking of the best US markets for starting an Airbnb business. As a college town, a lot of visitor activities are associated with university life.

10. Crystal, MN

• Median Property Price: $266,447
• Average Price per Square Foot: $156
• Days on Market: 59
• Number of Vacation Rental Listings: 211
• Monthly Vacation Rental Income: $3,080
• Vacation Rental Cash on Cash Return: 6.99%
• Vacation Rental Cap Rate: 7.14%
• Vacation Rental Daily Rate: $166
• Vacation Rental Occupancy Rate: 53%
• Walk Score: 59

Crystal, Minnesota is a suburban city located just outside Minneapolis. The city hosts 26 parks over 240 acres, featuring trails, activity areas, playgrounds, ball fields, and courts.

To start looking for the best vacation rentals for sale in these top locations or any other US market, sign up for a 7-day free trial of Mashvisor.

Starting a Short Term Rental Business

Investment in vacation rentals for sale comes with many pros and cons, just like investing in long term rentals. Generally, short term rentals offer a higher ROI, at least in top tourist destinations like Florida beach towns, after considering all their benefits and drawbacks.

If you think that it is the right choice for you, make sure to consider all the necessary factors and follow the four-step process provided above:

1. Choose an optimal market.
2. Select a good neighborhood.
3. Search for rentals for sale using multiple channels.
4. Analyze the property diligently to ensure positive cash flow and good ROI.

Most importantly, make sure to get access to the best real estate investment tools, like the Mashvisor Airbnb calculator. The calculator will help you find profitable areas, analyze neighborhoods, look for homes for sale, and perform rentals analysis.

To see how Mashvisor can help you find the best vacation rentals for sale in the US market, schedule a free demo with our real estate consultants.