Vacation rentals have become very popular among investors in the past couple of years due to the increase in the number of people who own a secondary residence that they can use as a vacation rental. But what are the best places to buy vacation rental property in 2022?

In this guide, I will talk about vacation rentals, the appeal of investing in them, and the best markets for investing in a vacation rental in the year 2022 based on the market trends and Mashvisor’s data.

So, without further ado, let’s get into our 2022 guide to the best places for buying a vacation rental property!

How to Find the Best Place to Buy Vacation Rental Property 2022?

Buy Vacation Rental Property 2022

Vacation rentals are short-term rental properties that are considered secondary residences for the owner.

What this means is that, unlike an investment short-term rental property, vacation rentals need to qualify as a secondary residence where the owner of the property resides for a number of days yearly.

Other than that, vacation rentals are just like any other short-term rental in that the owner can rent it out on a daily or weekly basis using platforms such as Airbnb in order to generate an extra income or cover the running costs of the property for the remainder of the year.

Read: How to Start a Vacation Rental Business: A Step-by-Step Guide

Since the pandemic started in 2020, vacation rentals have become very popular among people who were looking for a secondary residence to spend their time at during the lockdown and quarantine period.

This played a major role in the COVID-19 real estate market trends that we’ve seen in the US housing market in the past couple of years, where the demand for secondary homes, especially in suburban areas, rose through the roof leading to supply shortages and inflated prices that continue to this day, and that is expected to continue throughout 2022.

So, if you’re looking to join in on the trend of buying a secondary residence, then perhaps you should consider buying a property that is suitable to be run as a vacation rental to generate an extra income stream and help you build up your financial future!

How to Choose the Best Place to Own a Vacation Rental

When you decide to buy a vacation rental property, and you’re looking for the best place to buy vacation rental property in 2022, there are a number of things that you need to take into consideration.

Firstly, you need to keep in mind that this is a property that you might want to use as a vacation retreat occasionally, so it’s important that it is a property that you like and enjoy spending time at, and that the location is somewhere that you like going to.

Secondly, you also need to remind yourself that this isn’t just a secondary residence, and while it’s important that it’s a location that you enjoy, it’s also important that it’s a profitable location in order to run a vacation rental there.

Thirdly, taking both of the above aspects into consideration, you need to find a balance between what you enjoy and what actually makes sense financially. If you think you’re going to be spending a lot of time in this property, then maybe you should prioritize a location that you enjoy over another location that promises a better return on investment but that you enjoy less.

Of course, while choosing a location based on its appeal is a matter of personal preference and is a decision that people can make on their own after researching the different locations, assessing a location based on its performance for short-term rentals is a whole different deal.

So, how do you find the best place to buy vacation rental property in 2022? And what tools can you use to help you find profitable properties to purchase?

Best Short-Term Rental Markets in 2022

In real estate investing, there are a couple of ways to analyze locations and properties in order to project their future returns and performance as investment properties.

While vacation rentals aren’t strictly investment properties, in order to maximize the income that they generate you need to analyze them like any other rental investment property.

This usually means using metrics such as cap rate or CoC (cash on cash return) to see how much income the property will generate in relation to the money you’re investing in it.

In this guide of the best place to buy vacation rental property in 2022, I will be using the Capitalization Rate, which calculated the return on investment based on the net operating income divided by the property’s market value:

Cap Rate = Net Operating Income / Property’s Value

Using this metric, we can project each property’s return on investment to see how it will perform in the future.

Additionally, when you have enough data from a certain market, you can analyze the market to see its average performance and compare properties with this average to see which ones are the best to invest in.

However, this seems like a lot of work, especially considering how hard it is to get your hands on reliable and up to date real estate data and property listings.

For this reason, homebuyers and investors usually use online tools and platforms, as well as hire real estate agents, to help them find good investments.

Use Mashvisor to Find the Best Short-Term Rental Markets

Mashvisor is a real estate platform that was designed to help real estate investors and homebuyers find the perfect properties to purchase anywhere in the US.

The platform has a number of great tools to help you search through the different markets, find properties with specific traits or based on specific criteria, and analyze each property and market based on massive amounts of up-to-date data.

Using Mashvisor, you can easily find vacation rental properties that you can own based on the best long-term or short-term rental strategy to use.

Whether you’re looking for a property in a beautiful location and a high WalkScore, or if you’re looking for a property that will generate a lot of rental income – our Property Marketplace has all kinds of properties for sale, including off-market properties, for-sale-by-owner, and foreclosures.

And now, using Mashvisor’s data and our machine-learning AI, these are the best places to buy a vacation rental property in 2022.

To get access to our real estate investment tools, click here to sign up for a 7-day free trial of Mashvisor today, followed by 15% off for life

Best Cities for Investing in Vacation Rentals in 2022

Here are the top cities for investing in a short-term or vacation rental based on cap rates, divided into three categories based on the price range:

Best Place to Buy Vacation Rental 2022 (<$500k)

#1 McGahey Ville, Rockingham County, VA

Median Property Price: $458,229

Average Property Size: 183.37 Sq. Ft.

Occupancy Rate: 58.62%

Airbnb Monthly Rental Income: $4,870

Airbnb Daily Rate: $332

Airbnb Cap Rate: 7.64%

Traditional Monthly Rental Income: $1,360

Traditional Cap Rate: 1.45%

Walk Score: 17

#2 Wisconsin Dells, Columbia County, WI

Median Property Price: $333,960

Average Property Size: 169.72 Sq. Ft.

Occupancy Rate: 48.73%

Airbnb Monthly Rental Income: $3,603

Airbnb Daily Rate: $330

Airbnb Cap Rate: 7.22%

Traditional Monthly Rental Income: $1,053

Traditional Cap Rate: 1.06%

Walk Score: 71

#3 Penn Yan, Yates County, NY

Median Property Price: $429,920

Average Property Size: 288.65 Sq. Ft.

Occupancy Rate: 58.06%

Airbnb Monthly Rental Income: $4,519

Airbnb Daily Rate: $332

Airbnb Cap Rate: 7.09%

Traditional Monthly Rental Income: $2,019

Traditional Cap Rate: 3.3%

Walk Score: 77

#4 North Charleston, Charleston County, SC

Median Property Price: $346,402

Average Property Size: 197.67 Sq. Ft.

Occupancy Rate: 68.24%

Airbnb Monthly Rental Income: $3,366

Airbnb Daily Rate: $149

Airbnb Cap Rate: 6.66%

Traditional Monthly Rental Income: $1,328

Traditional Cap Rate: 2.48%

Walk Score: 77

#5 Cape Coral, Lee County, FL

Median Property Price: $495,117

Average Property Size: 262.27 Sq. Ft.

Occupancy Rate: 66.06%

Airbnb Monthly Rental Income: $3,203

Airbnb Daily Rate: $192

Airbnb Cap Rate: 4.27%

Traditional Monthly Rental Income: $1,546

Traditional Cap Rate: 1.81%

Walk Score: 77

Best Place to Buy Vacation Rental 2022 ($500k – $750k)

#1 Galena, Jo Daviess County, IL

Median Property Price: $548,600

Average Property Size: 267.58 Sq. Ft.

Occupancy Rate: 64.88%

Airbnb Monthly Rental Income: $5,188

Airbnb Daily Rate: $258

Airbnb Cap Rate: 7.22%

Traditional Monthly Rental Income: $854

Traditional Cap Rate: -0.53%

Walk Score: 76

#2 Temecula, Riverside County, CA

Median Property Price: $777,905

Average Property Size: 351.52 Sq. Ft.

Occupancy Rate: 65.01%

Airbnb Monthly Rental Income: $7,382

Airbnb Daily Rate: $442

Airbnb Cap Rate: 6.95%

Traditional Monthly Rental Income: $2,581

Traditional Cap Rate: 1.96%

Walk Score: 28

#3 Joshua Tree, San Bernardino County, CA

Median Property Price: $513,808

Average Property Size: 407.61 Sq. Ft.

Occupancy Rate: 62.31%

Airbnb Monthly Rental Income: $3,998

Airbnb Daily Rate: $240

Airbnb Cap Rate: 5.37%

Traditional Monthly Rental Income: $898

Traditional Cap Rate: 0.17%

Walk Score: 53

#4 Nashville, Davidson County, TN

Median Property Price: $622,873

Average Property Size: 364.87 Sq. Ft.

Occupancy Rate: 59.07%

Airbnb Monthly Rental Income: $4,849

Airbnb Daily Rate: $255

Airbnb Cap Rate: 5.26%

Traditional Monthly Rental Income: $1,951

Traditional Cap Rate: 1.97%

Walk Score: 32

#5 Savannah, Chatham County, GA

Median Property Price: $643,776

Average Property Size: 279.88 Sq. Ft.

Occupancy Rate: 65.1%

Airbnb Monthly Rental Income: $4,225

Airbnb Daily Rate: $188

Airbnb Cap Rate: 5.08%

Traditional Monthly Rental Income: $1,348

Traditional Cap Rate: 0.74%

Walk Score: 75

Best Place to Buy Vacation Rental 2022 (>$750k)

#1 Charleston City, Charleston County, SC

Median Property Price: $1,288,599

Average Property Size: 599.9 Sq. Ft.

Occupancy Rate: 69.67%

Airbnb Monthly Rental Income: $6,364

Airbnb Daily Rate: $319

Airbnb Cap Rate: 4.33%

Traditional Monthly Rental Income: $2,374

Traditional Cap Rate: 1.26%

Walk Score: 41

#2 South Lake Tahoe, El Dorado County, CA

Median Property Price: $998,821

Average Property Size: 658.14 Sq. Ft.

Occupancy Rate: 67.35%

Airbnb Monthly Rental Income: $4,816

Airbnb Daily Rate: $305

Airbnb Cap Rate: 4.19%

Traditional Monthly Rental Income: $1,778

Traditional Cap Rate: 0.7%

Walk Score: 57

#3 Sonoma, Sonoma County, CA

Median Property Price: $1,906,995

Average Property Size: 962.82 Sq. Ft.

Occupancy Rate: 65.71%

Airbnb Monthly Rental Income: $10,682

Airbnb Daily Rate: $477

Airbnb Cap Rate: 3.54%

Traditional Monthly Rental Income: $2,658

Traditional Cap Rate: 0.18%

Walk Score: 55

#4 Palm Springs, Riversdale County, CA

Median Property Price: $958,689

Average Property Size: 467.64 Sq. Ft.

Occupancy Rate: 63.47%

Airbnb Monthly Rental Income: $5,114

Airbnb Daily Rate: $365

Airbnb Cap Rate: 3.36%

Traditional Monthly Rental Income: $3,052

Traditional Cap Rate: 2.71%

Walk Score: 59

#5 Destin, Okaloosa County, FL

Median Property Price: $962,737

Average Property Size: 465.53 Sq. Ft.

Occupancy Rate: 49.54%

Airbnb Monthly Rental Income: $3,344

Airbnb Daily Rate: $338

Airbnb Cap Rate: 2.62%

Traditional Monthly Rental Income: $2,055

Traditional Cap Rate: 1.74%

Walk Score: 52

Where Can I Find More Places to Buy a Vacation Rental?

If you’re not interested in investing in a vacation rental property in any of these best places in 2022 for any reason, fear not!

You can look at our market forecasts and reports to find other suitable places or lists of best places to buy short-term rentals in specific states.

Read: 2022 Real Estate Market Forecast: 10 Predictions

Additionally, if you subscribe to and start using Mashvisor’s platform, you will also be able to access all of the markets’ data and analytics at your convenience!

One of the options that Mashvisor offers is a market report, which is an Excel sheet of a specific market or neighborhood that includes all of that market’s stats and listings for you to analyze and choose from.

Bottom Line

The best place to buy a vacation rental property in 2022 depends on your personal preferences. Whether you’re looking for a breathtaking place to enjoy your vacation days away from the city, or if you’re looking for a lucrative property that will yield you a profit, in the long run, our lists of best places to invest in a vacation rental include options for both.

Don’t forget to check out Mashvisor’s platform if you’re looking for more market forecasts and guides like this one, and subscribe to gain access to a wide range of tools that will make your life as an investor much easier!




Source link

Turn leads into sales with free email marketing tools (en)

Join Us

Subscribe Us

Related Post