Best Places To Buy Vacation Rental Property In 2022 | FortuneBuilders

Abstract

The Importance of Location For Vacation Rental Properties The location in which you buy your next vacation rental investment property will greatly impact its performance. 11 Factors To Consider Before Buying A Vacation Rental Property Vacation Rental Market Conditions Vacation rental market conditions have fluctuated quite dramatically in recent years. These conditions are highly favorable for investors looking to make the most of short-term rentals in the year ahead. Impact Of COVID-19 On Vacation Rentals COVID-19 had a detrimental impact on the world in March of 2020, and the vacation rental market was no exception. With a wide array of waterfront properties to offer, this vacation rental hot spot boasts the following metrics for investors: Median Property Price: $186,125 Price/Square Foot: $101 Airbnb Rental Income: $2,282 Airbnb Occupancy Rate: 58.7% Airbnb Cash On Cash Return: 7.6% Airbnb Cap Rate: 7.6% Traditional Rental Income: $1,018 Traditional Cash On cash Return: 1.8% Traditional Cap Rate: 1.8% Gatlinburg, Tennessee This is the second rental market located in Tennessee, and more specifically, the Great Smoky Mountains. Review these numbers before searching for your next vacation rental, and you may find yourself looking at property in Gatlinburg: Median Property Price: $393,935 Price/Square Foot: $204 Airbnb Rental Income: $3,800 Airbnb Occupancy Rate: 70.1% Airbnb Cash On Cash Return: 7.5% Airbnb Cap Rate: 7.5% Traditional Rental Income: $1,642 Traditional Cash On Cash Return: 2% Traditional Cap Rate: 2% The Best Vacation Rental Markets In 2019 Real estate markets are constantly changing, as are the metrics we use to evaluate them. Vacation rental property owners, on the other hand, like the area for several entirely different reasons: Median Property Price: $138,600 Airbnb Rental Income: $3,050 Airbnb Cash On Cash Return: 10.2% Airbnb Cap Rate: 10.2% Airbnb Occupancy Rate: 45.8% Traditional Rental Income: $1,100 Traditional Cash On Cash Return: 3.1% Traditional Cap Rate: 3.1% Portsmouth, Virginia Located close to downtown Norfolk, Virginia Beach and Colonial Williamsburg, Portsmouth has become a central location for anyone looking to visit the best places Virginia has to offer. Here's what investors can expect from rental properties of their own: Median Property Price: $387,000 Airbnb Rental Income: $5,020 Airbnb Cash On Cash Return: 9.3% Airbnb Cap Rate: 9.3% Airbnb Occupancy Rate: 53.9% Traditional Rental Income: $1,960 Traditional Cash On Cash Return: 2.3% Traditional Cap Rate: 2.3% Summary While a great vacation rental investment market does not guarantee success, the best places to buy vacation rental property continue to generate positive signals for investors.