The Best Places to Buy a Vacation Rental Property in 2020

Vacation rental property can bring in a lot of extra income. The key is to find the right locations to invest in that will bring in crowds week after week.

Different types of investors are finding opportunities in the rental market. Savvy investors can use the vacation property for family gatherings and enjoy themselves, but tn between time, they can earn a hefty rental income and enjoy substantial tax deductions.

Let’s take a look at the best places to buy vacation rental property in 2020.

When looking for the best places to buy vacation rental properties, seek out the booming tourist escapes. These locales draw in thousands or millions of visitors each year and those who own vacation properties in these locations can cash in on all that traffic. 

We will examine some of the most profitable destinations in the United States to facilitate deciding what is best for you with the largest the return on investment.

Investors should keep in mind that some properties may not produce a high margin even if the location is highly ranked. At times, homes that are ranked lower can generate a better return on investment.

This list incorporates a number of cities with the cost of the property and applies a rental opportunity on a short term basis.

Consider exploring markets that seem to defy recession and lend themselves as family vacation havens. These treasure coves are bringing resilience to the traditional family vacation without compromising affordability.

Among the top five are: 

• Panama Beach City, FL – This sunny location has a strong and recurring demand for vacation rentals that is expected to grow over the next few years.
• Gatlinburg, TN – Close to many historical sites and scenic rural destinations perfect for the adventurous tourist, the city of Gatlinburg brings in vacation home renters in droves.
• Pigeon Forge, TN–In recent years the need for vacation rentals in Pigeon Forge went up 73%. It’s still growing and folks who get in on it now can see robust returns in 2020.
• Palm Coast, FL—With a population of around 75,000, this city has been drawing in vacationers looking for a more relaxed pace.
• Killington, VT—You can’t go wrong with scenic Vermont and Killington is the place to be. If you’re not already operating there, you should be by 2020.

A factor that detours an investor is a high asset price like places in California. It may have a number of other beneficial qualities, but it does not make a good return on investment. Among these locations are:  Provincetown, MA, Pensacola, FL, Niagara Falls, NY, Tahoe, CA, and Isle of Palms, SC. 

In order to ensure your return on investment, secure the proper licensure. It’s vital to understand that there are some locations that restrict or completely prohibit renting out vacation homes.

For example, steer clear of neighborhoods with homeowner associations (HOA). An HOA can impose a dizzying array of rules and regulations that make it difficult, unprofitable, or downright impossible to rent a vacation property there.

While profits abound, there are some important factors to be aware of when getting into vacation rentals.

Keep in mind that you’ll have to take factors like taxes, maintenance, and insurance costs into account. On the bright side, you can also qualify for some terrific tax write-offs with vacation rental properties.

Vacation rentals must be priced competitively to outperform nearby rivals. It is not uncommon for one beach to be peppered with multiple vacation rental properties with different owners.

With that in mind, do your homework on the local competition and see what other rentals are charging customers.

Investing in conventional rental property is another avenue to pursue. Investors focus on areas that offer affordability, job growth, and population growth. Across the United States, there are a number of cities that meet the criteria with purchasing prices as low as $100,000. Here is a list of cities to explore:

• Cincinnati, Cleveland, and Columbus, OH – In Cleveland you can rent a $70,000 home for $800 – $1000/month.
• Detroit, MI– With average rents of $1,405 and encouraging job growth, Motor City is making a comeback in rental properties.
• Tampa, Orlando, FL, andJacksonville, FL:Rental property investors can continue to benefit from the droves of retiring baby boomers seeking to rent in Florida.
• Houston, TX – Features average rents of $1,440 and impressive returns on the average purchase price for single-family homes.
• Huntsville, AL – Has a population growth that exceeds an average rate of 63%.
• Pittsburgh, PA – Touted as one of the best cities to relocate to and has strong job growth and stable incomes.

These locations are lucrative rental hotspots for income property investors looking for strong market demand.

After strategically narrowing down your targets in these hot vacation rental markets it’s time to get financed and make it happen. Putting it into action is the most important steps in real-estate investing. You can plan all you want, but you won’t see a dime of revenue until you take the plunge and get the funding for your vacation rental property.

Vacation Rental Property Loans has been helping income property investors like you achieve goals since 2014. With fixed rate short term vacation home rental loans and blanket mortgages,Vacation Rental Property Loans can get you started off right.

Get on the phone with Vacation Rental Property Loans and ask about short term vacation rental home loans for your next venture.