The real estate market is growing as investors are looking to scoop up the rental income. When it comes to purchasing a property for a short-term vacation rental such as through Airbnb or VRBO, there are a few key things you'll want to look for while trying to increase your rental income.
If you want to invest in homes for the Airbnb market, you need to know the best places in America to start an Airbnb to have profitable short-term rentals. Hot cities to finance a short-term rental investment, property for short-term rentals, and how to finance a rental investment home will be discussed at length in this article.
Remember most are on vacation so think of things like beach access to white sand beaches, horseback riding, hiking in places like Zion National Park, Grand Canyon national park, places with outdoor adventure, tennis courts, and other outdoor activities such as places with rugged rock formations.
Does not have to be the largest city, it can be in an incline village, your clients are just looking to buy a vacation. Could be a small town with desert landscapes and hiking trails, does not matter, we are focused on your rental income by improving your occupancy rates by focusing on location. Rental income is good East Coast, West Coast, any coastal town, or mid-west vacation areas; all will help your real estate investment.
Key Points Overview
Floor-to-ceiling windows are a big motivator for vacationers, it helps them enjoy good mountain views or seaside vista but you need to give them something to view if you want the rental income to increase. Here are some of the best places to buy in America right now if you're interested in this type of investment of a vacation home to increase your rental income:
What to Look For in a Short-Term Rental Property
- Areas that are popular tourist destinations with high demand for short-term vacation rentals
- Neighborhoods that are up-and-coming where you can charge more for your vacation rental
- Vacation rental homes near public transportation for easier guest access
- Properties that have been recently renovated with modern amenities and features
Places to Find Profitable Short-Term Rentals
Some places to find vacation rental property for rental income is not as difficult for property investors as one would think. Rental income from a vacation investment property is easy with the right property management and finding the right rental property.
Whether you are looking for single family rental homes near golf courses or just for a weekend getaway, remember there is a strong rental demand near major cities and remote locations. Usually places less than two hours from popular destinations will increase your occupancy rates.
Coastal Cities
Always popular for tourists with high demand for short-term rentals. Los Angeles, Miami, and New York City are top picks.
College Towns
Students and families need lodging during school breaks. Investing near a college or university maximizes profits.
Historic Cities
Cities like Charleston and Savannah add charm to any vacation rental. Rich history drives steady guest traffic.
Ski Towns
Popular winter destinations where purchasing vacation rental property generates strong seasonal income.
Beach Towns
Always popular with vacationers. Consider Myrtle Beach, Hilton Head Island, and Destin for excellent locations.
Hot Cities to Finance Short Term Vacation Rental Investments
Owning a vacation rental property for the vacation rental market will build cash flow. The best places in America to start an Airbnb we can start with a list of hot cities to purchase profitable short-term vacation rental investment properties that meet our criteria. You may want to look for vacation rentals to finance rental income for your real estate investing.
One city after another is available more than listed here. If you focus on business travelers looking to rent in a rental a median property price, you should do well in big cities or even suburbs with homeowner association rules. Real estate in various locations will ensure geographic diversity. If you want to cater to social popular diversity, you may want to look at South Carolina for some medium home prices. Rental income from real estate no matter the square foot per home price is still rental income.
Hot Cities for Vacation Rental Investments
- Los Angeles, CA & San Francisco, CA
- Miami, FL & Destin, FL
- Salt Lake City & South Lake Tahoe
- Las Vegas & Hawaii
- New York City, NY & Sea Isle City
- Charleston, SC & Savannah, GA
- Myrtle Beach, SC & Hilton Head Island, SC
Advantages to Financing a Vacation Rental Property
There are a number of advantages to buying a property for short-term rentals instead of just using your own home. Your home can be an investment property with rental income to pay for your mortgage payments. Provided you have secured good interest rates on your home price, secured the proper property manager, and your home price was the right price for you, your real estate revenue growth will continue.
Here are some of the biggest benefits of owning rental properties:
Extra Passive Income
Think of your monthly payments as a cash on cash return from real estate investing as it builds your cash reserves
Increased Flexibility
Rent out whenever you want and vacation at your own property for free between bookings
Tax Benefits
Write off repairs, advertising, cleaning services, and even fuel for property inspections as business expenses
1. Extra Passive Income
One of the biggest benefits of owning rental properties for short-term rentals is the extra income you can generate. Think of your monthly payments as a cash on cash return from real estate investing as it builds your cash reserves. This can be especially helpful if you're trying to save up for a down payment on a new home or if you're looking to pay off some debt.
2. Increased Flexibility for Vacation Rentals
When you own a property for short-term rentals, you have the flexibility to rent it out whenever you want. This can be a great way to make some extra money on the side or to cover your costs while you're not using the property yourself. If you are set up in the best places in America to start an Airbnb or Vrbo, you always have a place to vacation and collect rent again after your free stay at your nest egg investment property.
3. Rental Home Tax Benefits
Another benefit of owning a property for short-term rentals is the tax benefits. You can write off many of the expenses associated with owning and operating a rental property, such as repairs, advertising, and cleaning services. Consult your accountant and tax advisor to see just how much you can get back in taxes for renting out your home. Even the fuel to drive out for inspections can be written off as a business expense, because your rental home IS a business.
4. Increased Property Value
Another benefit of owning a property for short-term rentals is the value. When you go to sell the property, you can often expect to get a higher price for your vacation home than if you had just used it as a traditional home. Another good reason to find the best places in America to start an Airbnb or Vrbo income property. Short term rentals provide more income faster so the value increase is instant.
5. Vacation Rental Property Markets are Booming
The vacation rental market is booming, and there are a number of reasons for this. First, more and more people are choosing to travel than ever before. In fact, a recent study found that the number of people who travel for leisure has increased by nearly 20% in the past decade.
Another reason for the growth of the vacation rental market is the increasing availability of online booking platforms. These platforms make it easy for people to find and book vacation rentals, and they have become very popular in recent years in the vacation rental market.
Finally, the growth of the vacation rental market is being fueled by the increasing popularity of experiential travel. People are increasingly looking for unique and different vacation experiences, and vacation rentals offer a great way to experience more rental income.
6. Investment Home Refinance
Should I refinance my investment property? As investment property refinance lenders, we can help provide you with cash out equity to expand your rental home portfolio. Short term vacation rental financing can bloom into multiple properties with an investment home refinance. Start with a single property investment loan and roll it over into a four-plex addition to your portfolio, or even an entire apartment building but you need to free up the equity to expand and we are here to help.
How to Finance a Rental Investment Home
If you're looking to purchase a property for short-term vacation rental, contacting us at Rental Home Financing is the perfect place to start. We offer a wide variety of mortgage products that are specifically designed for this type of investment, and we can help you get the financing you need to get your property off the ground. Start with finding the best places in America to start an Airbnb, Vrbo, etc...
Net operating income ROI depends on property taxes principal and interest commercial real estate loans along with what purchase price and vacancy rates. We can get you into a DSCR loan and get you qualified with the potential income of the property.
To get a better grasp on the real estate investor amount of money monthly rent cash on cash return mortgage payment knowledge is important. A rental income calculator and a monthly payment property calculator rate of return for real estate investing can be done on a spreadsheet but the amortization schedule cash flow of a rental property investment may be calculated on our mortgage calculator.
Our Vacation Rental Property Markets Experts
Plus, our team of experts is here to help you every step of the way. We can help you find the perfect property, negotiate the best deal, and get your mortgage approved quickly and easily. We can help you through the property management process of financial planning while you focus on your additional income. We have a great data team.
RentalHomeFinancing.com is the perfect place to start. We'll help you get the financing you need to make your dream a reality.