The 5 Best Vacation Rental Markets for Dramatically Expanding Your Portfolio

Like other real-estate, when it comes to vacation rentals, location is everything. The location you choose can have a dramatic impact on your portfolio.

However, increases in home prices have made the vacation rental properties a smart buy. Here you’ll see a rundown on some of the best vacation rental markets for these properties.

The potential for profit in vacation rental properties is enormous in the United States. The domestic market for these properties is estimated to be $36.6 billion in value. With so much money to be made, it makes vacation rental properties look like a golden opportunityfor LLCs.

However, before jumping into the deep end of the pool, you’ll need to research different areas that are going to be the most profitable. Investing in the wrong location can be disastrous. Doing your homework on a location pays off to not only offer your customers the best area but also increase your bottom line.

The United States has some extremely hot markets for vacation rentals. Seasoned property investors will have an eye for opportunity across the country, while greenhorns should stick to local markets. In any case, there’s plenty of money to be made, here are some of the most profitable destinations to check out.

Orlando,Florida is among the rental property markets that have experienced growth. With the proximity to attractions like Disney World and Universal Studios, you can count on plenty of traffic. To sweeten the pot, more vacationers are opting for rentals as opposed to hotel rooms. The flexibility that vacation rentals afford trump hotels, especially in terms of price. Many vacation rentals will even let renters bring their own dogs—which is a huge advantage over hotels.

Vacationers bringing their families to visit the area’s amusement parks benefit from the extra space that vacation rental homes afford. Larger groups like families can fit much more comfortable in a vacation rental home than being crammed into hotel rooms. 

Home of the Cubs, Chicago is a heavy hitter as a vacation rental destination. Pulsing with commerce, art, and all manner of attractions, the Windy City brings in top dollar for vacationers looking for a grand experience.

The city of Chicago offers you an impressive range of variety in terms of potential customers. Some come to rent for work, others, for a good time in the city with friends and family.

With so many historic sites and some of the finest museums in the world, the nation’s capital is a lucrative market for vacation rentals. It also has a great demand for apartments. One of the biggest sources of renters come is the massive workforce that commutes in DC every day andLLCs that can capitalize on this market stand to make a lot of money.

Memphis has proven to be a highly desirable market for home rentals over the past few years. As recently as 2016, 30% of all home saleswere rentals. The majority of investment in Memphis rental properties comes from outside of the state, ranging from New York to California. Some property investors have come as from as far as Puerto Rico, highlighting the potential for profit in Memphis Tennessee.

Some of you might be taking a double-take right now, but you heard it right, Tulsa Oklahoma is a hot market for vacation rentals. Along with Chicago and Memphis Tennessee, Tulsa is among the top 5 vacation rental markets.

The key to portfolio diversification is to acquire a mixture of unique investments to effectively spread risk across multiple areas. When it comes to unique investments, vacation rental properties in Tulsa Oklahoma fit the bill, and as one of the top 5, it’s a great buy.

When you’re out looking for vacation property rentals, use the price/rent ratio to determine the potential for properties of interest. You can do this by dividing the listing price of the home by the annual rent.

Ratios in excess of 21% mean that the property could be too expensive for most people in the area to rent. In these cases, it’s wiser to opt for an apartment complex or multifamily housing where rents can be split up over multiple parties.

With ratios at 20% or below, renting the property is feasible and is a safer bet in the long run.

Now that you know where to look, you can start digging into properties in these areas and scoping out potential investments. After that, you’ll want to secure financing for the property loans.

However, you won’t want to apply at a bank because these institutions often deny rental applications due to the risks involved in these property investments. Forward-thinking companies like Vacation Rental Property Loans are more than willing to put up the capital for vacation rentals.

Like other profitable ventures, you have to pay to play, and raising the capital can be one of the most frustrating stages of the operation. Companies like Vacation Rental Property Loansmakes it easy on you and givesyou access to the funding you’ll need to receive the profits in these hot markets.

Unlike banks, Vacation Rental Property Loans won’t ask you for tax returns. If you’ve got a credit score of around 640, you are in a good position to qualify for a 30 year, amortized short term vacation property rental loan at a fixed rate. For real-estate investors, that’s as good as it gets.

Call Vacation Rental Property Loans today, and start making money on vacation property rentals!