In recent years many real estate investors are switching away from traditional, long-term rental properties in favor of vacation rental homes.
In this video, Michael shows you the top 10 US real estate markets for buying a vacation home in 2022 to rent out on Airbnb or another short-term rental platform. These top 10 locations are selected based on their cash on cash return when rented out on a short-term basis.
If you’d like to maximize your return on investment with short-term rental properties, consider one of the following top 10 markets:
#1: Huntington Valley, PA Vacation Rental Cash on Cash Return: 9.61%
#2: Owings, MD Vacation Rental Cash on Cash Return: 8.97%
#3: Sparks, MD Vacation Rental Cash on Cash Return: 8.73%
#10: Mound, MD Vacation Rental Cash on Cash Return: 7.15%
If you’re wondering whether buying a vacation home is the right real estate investing strategy for you, consider the pros compared to investing in traditional rental properties:
1. Dual purpose: You can use your vacation rental as a second home to spend time with your family and as a rental property the rest of the time.
2. Tax write-offs: Vacation rental homes come with different tax advantages such as insurance premiums, mortgage interest, management fees, cleaning costs, and others.
3. Low-risk investment with high-return potential: Vacation home rentals are less risky compared to other investment strategies while offering a high potential return on investment.
When buying a vacation home to rent out on Airbnb, you should take into consideration the following factors:
1. Location of the vacation rental
2. Cost of the vacation home
3. Safety of the area
4. Potential of the local real estate market
5. Condition of the property
6. Location short-term rental laws and regulations
