If you want to get into real estate investment, you’ve probably thought about short-term rentals.
Real estate markets have been steadily growing and recovering to pre-pandemic levels. As such, many housing markets have experienced an influx of investors looking to buy secondary homes or investment property as they seek to take advantage before property prices climb higher.
When it comes to starting an Airbnb business, Rosemary Beach, Florida is one of the lucrative real estate markets to watch.
In today’s article, we seek to delve deeper into investing in real estate in Rosemary Beach Airbnb, why we think the business will flourish, and some trends to watch out for.
Why Own Airbnb Income Property?
Owning and running a rental business is one of the best ways of making money in real estate. Investment experts worldwide consider it the safest investment with a lot of potential to make a handsome profit.
When you purchase an investment property, you can choose to follow one of two rental strategies to make money. They include:
- Traditional long-term rental strategy: With this strategy, you find permanent tenants who rent the property for a long time. Most investors in the US follow this rental strategy. Typically, long-term rentals are less volatile and provide investors with a steadier flow of income. They’re also a much safer option.
- Vacation or short-term rental strategy: As the name suggests, this strategy involves leasing your property to guests for a minimum of one night. The guests can rent on a daily or weekly basis. Most guests consist of tourists, vacationists, or traveling business people.
Airbnb properties are short-term properties listed on the Airbnb platform. The platform has made vacation rentals popular all over the world in the past decade. It has also provided an alternative and lucrative source of income for investment property owners.
Due to their nature, short-term rentals are highly affected by seasonality. For example, demand for Airbnbs in coastal areas increases during the summer when most tourists make their way to the beach to enjoy their vacation.
Short-term rentals are more suitable for modern-day real estate investors since they may be more profitable than renting the home to one tenant for a long time. This is because you can set a higher nightly rate.
If you follow the right steps and pay attention to property management, you can set your Airbnb business up for success.
Why Invest in Rosemary Beach Airbnb Property?
Investing in Rosemary Beach Airbnb makes a lot of financial sense.
The Florida housing market has experienced a lot of steady growth over the years. With this in mind, plus its natural beauty, friendly weather, and tourist attraction activities, it’s only safe to say that you’ll have a large pool of guests who’ll book your property to enjoy their holiday.
When it comes to choosing a rental strategy for your investment, you might want to look at the performance of such properties in your area of interest. This helps you to see how your investment could perform on average.
We used the Mashvisor database to fetch the following vital data to help us gauge the performance of both traditional and short-term rentals in Rosemary Beach, Florida.
- Median Property Sale Price: $1,904,000
- Average Price per Square Foot: $1472.13
- Traditional Rental Income: $1490
- Traditional Cash on Cash Return: -0.86%
- Airbnb Rental Income: $4,310.03
- Airbnb Cash on Cash Return: 0.24%
- Airbnb Daily Rate: $368
- Airbnb Occupancy Rate: 52.11%
- Walk Score: 42
In case you didn’t know, cash on cash return is a metric used to measure the return on investment by calculating the amount of money the property is generating every year compared to the total amount of cash you’ve invested in it. You want an investment property that will provide you with a positive cash flow.
As you can see from the data above, real estate investing in Rosemary Beach Airbnb will provide you with positive cash on cash return, while traditional rentals provide a negative return. With an Airbnb rental income of $4,310.03, your short-term rental should be able to pay all rental expenses and bills, including mortgage. Also, due to the relatively low cost of living in this area, you’ll still be left with a handsome profit.
Real Estate Trends in Rosemary Beach, Fl
Growth indicators and past trends are great factors to look at to know what the housing market in Rosemary Beach will look like for investors.
As of December 2021, the median property price in Rosemary Beach was $3,050,000, which was a 58% increase from the previous year. The median listing home price per square foot was $1.1k. The homes on sale spent an average of 53 days on market.
There were 25 homes sold in Rosemary Beach in 2021. This was a decrease from 36 homes in 2020.
The median listing price of single-family homes in Rosemary Beach in December 2021, was $3,700,000, compared to $3,600,000 the previous year. As for condos and townhouses, they were listed at $416,500 compared to $1,175,000 the previous year.
The average home in Rosemary Beach sells at 4% less than the listing price and goes pending in around 53 days. On the other hand, hot homes sell for around the listing price and go pending in around 6 days. It’s rare to come across multiple offers in the area.
In January 2022, there are three properties for sale in Rosemary Beach on the Mashvisor platform. The properties range from $1,650,000 to $2,600,000.
Why Are Tourists Attracted to Rosemary Beach?
Rosemary Beach, Florida is rising to become one of the leading tourist destinations in America. Other than the sugar sand beach and friendly coastal climate, the city also offers a myriad of family-friendly activities, charming architecture, golf courses, and mouth-watering cuisine.
The beautiful beaches on this stretch of Florida are made up of clear quartz. They are luxuriously soft and even massage your feet as you casually stroll on the beach. Besides, there are some sand dunes for you to explore. As if not enough, the beaches are always clean and nice since pets aren’t allowed unless an area homeowner obtains a special permit.
If you want to bring your whole family for a vacation, the destination is not short of family-friendly activities. To start with, the water at the beach deepens gradually. You can walk out far and it’ll still be shallow for you and your kids to splash around. There are also biking options meaning you can take a family bike ride together.
Rosemary Beach is also attractive to tourists because of its proximity to other beachy villages and communities. While there’s already enough on Rosemary Beach to keep tourists busy, they can also take trips to other locations.
Luckily, the beaches aren’t too crowded. There are population control measures in the area, starting with the regulation of high-rise buildings. Buildings aren’t allowed to go beyond 4 stories. The only ones that go beyond were built before this ban came into place. In short, there aren’t too many people staying within this area. This makes it suitable for people who want to unwind in a calm and quiet location.
For foodies, there’s an excellent culinary scene where you get the privilege of sampling the pleasures of the gulf, such as fresh seafood. For coffee lovers, Amavida Coffee and Tea offers unreal fancy chocolate with Hawaiian sea salt. Edward’s Fine Food and Wine is an impressive place for wine lovers. If you’d rather beer, make sure you visit the Grayton Beer Company, where you can imbibe American Lager throughout your stay.
Another vital factor why tourists from all over love Rosemary Beach is because it’s so easy to get to. There are two airports that are easily accessible from South Walton. Panama City Airport is about half an hour away, while Pensacola is less than two hours from the area.
With all these in mind, it’s easy to see why Rosemary Beach Airbnb is a lucrative short-term rental investment. Think of how the tourism sector is recovering and getting back to pre-pandemic levels. This means that the demand for Airbnb Rosemary Beach is going to be on the rise.
How Do You Find Airbnb Investment Property in Rosemary Beach?
There are many vacation properties for sale in Florida. You can simply buy one and kickstart your vacation rental business. However, if you want to make an informed decision while buying your Rosemary Beach Airbnb, your answer lies in Mashvisor.
The modern-day real estate investor is prudent and uses various tools to make data-based decisions. Mashvisor is an online platform with a multitude of tools to help new and experienced real estate investors looking to diversify their real estate portfolio find the most profitable investment properties based on actual data projections.
The innovative and effective tools include:
Investment Property Finder
As the name suggests, Mashvisor’s Property Finder is a search tool that helps you find the most suitable investment properties for you. It’s an interactive map tool that offers you an array of filters to help you narrow down your search to your liking.
How does it work?
Using the smart search bar and interactive map, enter the name of the neighborhood, street address, or city that you’d love to invest in. The results will be a list of properties for sale in that area of the map.
The results appear with property details, such as property price, traditional and Airbnb rental income, traditional and Airbnb cash on cash return, and Airbnb occupancy rate.
You can then narrow down the listings based on the following metrics:
- Property price range (budget)
- Cap rate
- Cash on cash return
- Number of rooms
- Property type
- Year built
- Property Status (foreclosure, for sale, pending, or sold)
Using these filters will help you narrow down and identify listings that match your search criteria. You can then analyze the listings more and compare them to find one that’s most suitable for you.
The tool also comes with a heatmap feature that gives you visual indicators of each area and neighborhood’s performance based on property price, rental income, and returns on investment for both traditional and short-term rental strategies.
The heatmap uses colors to represent data. The color green represents areas that perform well, while red is for dormant neighborhoods. Orange and yellow are for neutral areas.
The heatmap tool comes in handy when carrying out Florida real estate market analysis.
Investment Property Calculator
After identifying Rosemary Beach Airbnb properties that you’d love to invest in, it’s time for you to further scrutinize each property to find the most profitable one using the Mashvisor Property Calculator.
When you click on any property listing on the map or sidebar list, you’ll go to the property analysis page where you can find basic details, such as property price, size, and description. Most importantly, you gain access to the Airbnb Property Calculator where you can get a comprehensive breakdown of the property’s investment analysis.
In addition, you get to compare the property with other comparable properties within the same neighborhood. The Airbnb Calculator gives you estimates related to the property using metrics like:
- Traditional rental income
- Airbnb rental income
- Traditional cash flow
- Airbnb cash flow
- Traditional cash on cash return
- Airbnb cash on cash return
- Property expenses
- 10-year investment payback
You don’t have to worry about the data’s accuracy since it comes directly from the Airbnb site and other short-term rental platforms. Furthermore, you can also adjust the occupancy rate and expenses and the tool will update the results to make them more accurate.
Finally, this tool also comes with an in-built mortgage calculator. You can use it to include your mortgage type, interest rate, and duration to see what your financial future looks like, based on these values.
Key Takeaways
Investing in Rosemary Beach Airbnb may be a risky investment decision to make, but will likely pay off in the long term. Tourism levels in the area are expected to rise. This means Airbnb demand will be high and investors will reap big from their investment.
The Rosemary Beach Florida real estate market is also growing, making it a perfect neighborhood for investors. This is the perfect opportunity for you to purchase an investment property in this area.
To make prudent investment decisions, you need to use Mashvisor tools. This platform serves both beginners and experienced real estate investors and helps them find the most profitable properties in suitable neighborhoods of their choice. Don’t be left behind. Sign up today.