The second quarter of the year comes with new opportunities for real estate investing! For most people, spring is the best time of the year to buy a new (or a second) home. If you’ve been a real estate investor for a while, then you probably know that this holds true in the real estate investing business! The best type of investment properties to purchase during springtime are vacation home rentals.
Note: This is part 2 of The 20 Best Places to Buy Vacation Home Rentals in the US at the Second Quarter of 2018. To go to part 1, click here.
Recap of Part 1
Vacation home rentals are the best type of investment properties for a beginner real estate investor because not only do these properties function as your own place to stay in during your annual vacation, but they can serve as your money making machine! Simply listing your vacation home on Airbnb while you’re not occupying it is a great way to earn extra income from the rental property.
The second quarter of 2018 is the best time of year to invest in vacation home rentals because it is a peak tourist season, and tourists prefer staying in a vacation rental over a hotel suite. For property investors, this provides them with the main factors for a successful short-term investment property which are 1) a large pool of short-term tenants, 2) high turnover as well as 3) high occupancy rate.
Another reason why vacation home rentals are great investment properties is the tax benefits. Keep in mind, however, that:
- If a real estate investor rents out his vacation home for more than 14 days, the property is considered a business and, therefore, the investor can deduct rental expenses.
- If a real estate investor rents out his vacation home for less than 14 days, the property is considered a personal residence and, thus, the investor can’t deduct rental expenses like repairs, property management fees, utilities, etc.
So, whether you are a beginner real estate investor searching for your first rental property or an experienced real estate investor looking for a new investment property, you should definitely consider buying a second home and renting it out as a vacation rental in the second quarter of 2018.
Where to Invest in Vacation Home Rentals in the US Housing Market Now
Here’s a list of the best places to buy vacation home rentals in the US housing market during the second quarter of 2018. NOTE: this list consists of 20 cities which we’ve divided into two articles. To go to part 1, click here.
This information is based on data analysis provided by Mashvisor’s rental property calculator – a real estate investing tool that allows property investors to search for investment properties based on specific criteria, such as finding properties of a certain type, in a certain neighborhood, or with a certain cap rate. To learn more about our product, click here.
Click Here to start looking for the best investment properties in any real estate market of your choice!
Besides Airbnb rental income, here are some more in-depth information and numbers regarding these real estate markets, provided to you by Mashvisor’s rental property calculator:
Vacation Home Rentals in College Station, TX
- Median Property Price: $332,242
- Airbnb Rental Income: $1,961
- Airbnb Cap Rate: 3.37%
- Airbnb Cash on Cash Return: 3.37%
- Airbnb Occupancy Rate: 29.44%
Vacation Home Rentals in Gainesville, FL
- Median Property Price: $415,779
- Airbnb Rental Income: $1,519
- Airbnb Cap Rate: 3.27%
- Airbnb Cash on Cash Return: 3.27%
- Airbnb Occupancy Rate: 48.92%
Vacation Home Rentals in Arlington, TX
- Median Property Price: $292,624
- Airbnb Rental Income: $1,611
- Airbnb Cap Rate: 3.23%
- Airbnb Cash on Cash Return: 3.23%
- Airbnb Occupancy Rate: 47.09%
Vacation Home Rentals in Montgomery, AL
- Median Property Price: $192,689
- Airbnb Rental Income: $1,292
- Airbnb Cap Rate: 3.17%
- Airbnb Cash on Cash Return: 3.17%
- Airbnb Occupancy Rate: 42.75%
Vacation Home Rentals in Silver Spring, MD
- Median Property Price: $403,848
- Airbnb Rental Income: $2,400
- Airbnb Cap Rate: 3.13%
- Airbnb Cash on Cash Return: 3.13%
- Airbnb Occupancy Rate: 44.85%
Vacation Home Rentals in Bryan, TX
- Median Property Price: $298,789
- Airbnb Rental Income: $1,689
- Airbnb Cap Rate: 3.04%
- Airbnb Cash on Cash Return: 3.04%
- Airbnb Occupancy Rate: 34.09%
Vacation Home Rentals in Punta Gorda, FL
- Median Property Price: $389,524
- Airbnb Rental Income: $937
- Airbnb Cap Rate: 2.98%
- Airbnb Cash on Cash Return: 2.98%
- Airbnb Occupancy Rate: 36.65%
Vacation Home Rentals in Scottsdale, AZ
- Median Property Price: $808,703
- Airbnb Rental Income: $2,750
- Airbnb Cap Rate: 2.95%
- Airbnb Cash on Cash Return: 2.95%
- Airbnb Occupancy Rate: 41.62%
Vacation Home Rentals in South Bend, IN
- Median Property Price: $167,641
- Airbnb Rental Income: $1,245
- Airbnb Cap Rate: 2.88%
- Airbnb Cash on Cash Return: 2.88%
- Airbnb Occupancy Rate: 23%
Vacation Home Rentals in Miami Beach, FL
- Median Property Price: $820,417
- Airbnb Rental Income: $3,267
- Airbnb Cap Rate: 2.74%
- Airbnb Cash on Cash Return: 2.74%
- Airbnb Occupancy Rate: 62.15%
Start Your Search Now!
If you’re interested in finding an investment property in any of the top cities mentioned above, start your property search with Mashvisor! Mashvisor’s platform provides property investors with the best real estate investing tools and data analysis for both traditional and Airbnb investment properties to help them find the best investment property in the best locations.
To start your search for vacation home rentals in any state and city across the US housing market, just sign up and use our Investment Property Calculator – A versatile tool that allows property investors to calculate the different values related to an investment property, including the Cash on Cash Return, Cap Rate, Cash Flow, and Airbnb Occupancy Rate.
You’ll also get access to another useful real estate investing tool and that is the Investment Property Finder – A powerful and heavily customizable search tool that allows property investors to search for rental properties based on specific criteria, such as finding properties of a certain type, in a certain neighborhood, or with a certain Cap Rate. Moreover, this tool comes with a Heat Map Function that allows property investors to find rental properties much faster using visual cues. For example, you can set the heat map to indicate the areas with the highest Cash on Cash Return, and you will immediately be able to see the results.
To start your 7-day free trial with Mashvisor and subscribe to our services with a 15% discount after, click here.
NOTE: This is part 2 of The 20 Best Places to Buy Vacation Home Rentals in the US at the Second Quarter of 2018. To go to part 1, click here.