Article by Brad Beckett, Director of Education & Outreach, Real Estate Investing Today, National Real Estate Investors Association (NREIA).
Realtor.com says these 10 cities are “real estate bonanzas” where short-term rental hosts can get a good ROI:
Crestview, FL
Kapaa, HI
Roanoke Rapids, NC
Ellensburg, WA
Georgetown, SC
Kalamazoo, MI
Cambridge, MD
Daphne, AL
Olean, NY
State College, PA
However, they do say that before running out and buying an investment property it helps to fully understand the real estate market you’re targeting – with items such as how much you can charge per night, and how much you can expect to make. To get their list, they zeroed in on the markets they found where short-term rentals have the greatest earning potential. They analyzed home price data in each metropolitan and micropolitan areas with an average of at least 25 short-term rental listings each month for the past year. Interestingly, data show it’s not just the most touristy vacation spots that will make the most money.
The revenue can be a boon for homeowners or an income stream for investors. It can help some folks pay off their mortgages, fund vacations, or even help put their kids through college.
In areas where the demand might not be sky-high, the low price of homes there can make them just as lucrative as more popular areas.
Article by Brad Beckett, Director of Education & Outreach, Real Estate Investing Today, National Real Estate Investors Association (NREIA).