For the uninitiated, Gulf Shores (which also made our list of best places to buy a beach house) seamlessly runs into the bordering beach town Orange Beach and, combined, this vacation rental-friendly region boasts 32 miles of pretty beaches. How to Find a Real Estate Agent | American Home Shield. Perhaps even more importantly, is the citys central location to three states: Iowa, Illinois and Wisconsin. Plus, the Poconos boast small-town charm throughout vacation rental-friendly towns like Tobyhanna, Pocono Lake, and Albrightsville. Travelers come to the area for both summer and winter recreation, which means vacation rental owners will have two busy seasons to help them hit their occupancy goals. Evolve Vacation Rental. From an energetic mountain town in Tennessee that neighbors the countrys most-visited national park, to a lesser-known (for now) seaside escape in south Texas, here are the 12 best places to buy a vacation rental in 2022. The information presented is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Consequently, Bainbridge Island is a short ferry ride to downtown Seattle, where visitors can take in everything the Emerald City has to offer, or they can relax on a secluded beachfront property. No matter when you come, rest assured that there will be some sort of event in the town. Brimming with plenty of things to do, Branson is one of those destinations that can suit just about every type of traveler. Along with the spectacular shows Mother Nature creates here (were talking breathtaking fall foliage and synchronous fireflies), the region has dozens of sought-after tourist attractions, from Ripley museums and mini golf to a mountain coaster and Dollywood. That means its time for investors to consider alternative cities or those that are less popular but share a similar earning potential. Its the perfect place for out-of-towners to sample all the best Oregon has to offer, from whale watching and exploring the rolling sand dunes to hiking in the moody coastal mountains. Fredericksburg, situated in the Texas Hill Country about 1.5 hours from both Austin and San Antonio, has more than 50 wineries. The Great Smoky Mountains National Park is the third-most visited park in the United States, with a whopping 12.1 million tourists visiting in 2020. If youre not an outdoorsy type, the town has six premium wellness spas you can visit. The By the Numbers data below is based on a combination of proprietary and public data, but the three main metrics we took into account are: We also evaluated a propertys potential to outperform market expectations with an Evolve partnership. If youre looking for another remote place for buying a vacation home, you should look no farther than Pure Michigan. According to the National Association Realtors (NAR), sales of investment homes increased 4.5 percent year-over-year, a figure that has risen steadily for the past seven years. Gatlinburg is most commonly known for its outdoor activities and country singer Dolly Partons theme park: Dollywood. Its official: travel is back, and theres a lot of pent-up demand for epic vacations. If youre planning on visiting your vacation home in the winter, you have to enjoy the snow. "url": "https://twitter.com/konradlive" Primary cities have proven so lucrative for vacation rental investments that opportunities in these markets have lessened as their popularity grows. Activities include casinos, historical sites, and White Sands National Park, a 275-square mile sandbox composed of shimmery gypsum crystals. purchasing a vacation home can give you tax deductions, difference between a home insurance and a home warranty, more than 400 festivals and special events, How to Unclog Your Kitchen Sink | American Home Shield, How to Fix a Clogged Sewer Line | American Home Shield, American Home Shield Natural Hazard Disclosure. Still, with a potential 14.7% cap rate the ratio between the propertys net income and its market value, and a key measure of success you should be able to recoup your investments and start earning profit more quickly. If youre a wine connoisseur (or just someone who enjoys a glass every now and then) and looking for the best place to buy a vacation home near wine country, Fredericksburg, Texas, is the place for you. NO TWO HOMES ARE THE SAME. "datePublished": "2022-4-6", You may never want to leaveand we dont blame you. The Poconos have plenty of year-round adventures for families and outdoors lovers alike, from hiking to Bushkill Falls (known as the The Niagara of Pennsylvania) and water sports to skiing, snowboarding, and snow tubing. In fact, its only a few hours away from Yellowstone National Park, making Big Sky one of the best vacation home locations. "@type": "Article", Click to register for our FREE online real estate class! It may be tricky to spot since its distinct pattern doesnt show clearly when dry, but Michiganders are always on the lookout. Thanks to the towns German roots, the biggest festival is Oktoberfest, which the town holds at the beginning of October every year. And unlike other Arizona destinations (like Sedona, Scottsdale, or Flagstaff), the Pinetop-Lakeside area is lesser-known. Register for our FREE 1-Day Real Estate Webinar and get started learning how to invest in today's real estate market! Heres what investors can expect from rental properties of their own: While a great vacation rental investment market does not guarantee success, the best places to buy vacation rental property continue to generate positive signals for investors. Straddling two states (California and Nevada), Lake Tahoe is a magical destination, with sparkling blue water and rugged mountains surrounding it. Did you know Texas has wine country? The area is a gateway to Shenandoah National Park, which includes a stretch of the famed Appalachian Trail, fields of wildflowers, and cascading waterfalls. Big Sky has you covered. These conditions are highly favorable for investors looking to make the most of short-term rentals in the year ahead. In fact, Google data hints that the desire to travel is higher than ever, as people have searched for phrases like rental near more than twice as much as they did over the past year. Both are still considered some of the best places to buy a vacation rental, as our RES team says all three markets and their successes overlap pretty heavily. "mainEntityOfPage": { With a good mix of mountain-town magic and Southwestern style, Ruidoso is a repeat feature on our annual best places to buy list. Most of the white stuff in the U.P. Our new online real estate class can help you learn how to invest in rental properties that can help increase your monthly cash flow. The year ahead is expected to follow the same upward trend. Sometimes it can only be a quick walk around the block. Kissimmee is an excellent option when carving out your tropical happy place. important amenities for mountain properties, Important Benefits of Investing in Vacation Rentals. When it comes to a location with endless possibilities, Big Sky is a great choice. You cant have a list of the best places for vacation homes without including Florida. The qualifications used to determine the best places to buy vacation rental property are, at the very least, subjective. Considering the proximity to some of the most magical theme parks in the world, the median cost of a home in Kissimmee is surprisingly low, clocking in at around $320,000. Plus, our RES team says smaller cabins have the potential to perform well here, which means homebuyers can turn a hideaway cabin into a short-term rental gem. Check out the stats on Tuscaloosa to help decide for yourself if this is the right city for your next investment: The population of Sevierville is only around 16,000, but that is precociously the reason it draws so many tourists each year. Working with a knowledgeable realtor who specializes in the area can help you understand HOA regulations and find properties with amenities that your guests will love. As an alternative to the desert landscape, Pinetop-Lakeside tends to surprise Arizona travelers with its expanse of Ponderosa pines, as well as its snowy winters and not-too-hot summers. The beautiful blue mist mountains have ample opportunities to view wildlife, like the American Black Bear, as well as picturesque waterfalls. "https://www.fortunebuilders.com/wp-content/uploads/2021/04/best-places-to-buy-rental-property.jpg" For the fourth year in a row, the Poconos tops our list as the best place to buy a vacation rental. So those who buy a vacation rental in this area are well-positioned to hit their occupancy goals, thanks to the 12.1 million visitors who flock to the national park annually. "name": "FortuneBuilders", Whats more: many travelers are showing specific interest in the great outdoors, and they want access to amenities like kayaks, bikes, even boats things that vacation rentals are best-suited to offer. If inventory is limited in Bryson City, our RES team also recommends checking out nearby Maggie Valley, a special spot where the Smoky and Blue Ridge Mountains meet. Consider the impact of good photography, keywords, and even seasonal discounts as you market the listing. Experienced investors will often advise beginners to over-project their expense budget, as well as create cash reserves for unplanned incidents. Below, youll see The Evolve Difference, showcasing how we helped some of our top owners maximize income in each area, resulting in them significantly surpassing the markets projected revenue. Property managers can accomplish a range of tasks, from handling tenant turnover and overseeing cleaning and maintenance services to marketing your listing. It is clear that as life returns to normal, the most profitable vacation rental locations will rebound quickly in terms of rental rates and occupancy. And with a cap rate of 7.1%, Windham sits right in that sweet spot of providing an affordable escape into nature while helping you get a strong return on investment. From Oregon to the Florida coast, these dog-friendly vacation spots get four paws way up. Partnerships: Working with a partner, including friends or family members, can often open up a lot of opportunities in real estate investing. As a whole, Arizona is also a great state to buy a vacation home in because its free from a lot of regulations, and visitors come to the sunny state year-round. The latest real estate investing content delivered straight to your inbox. "@type": "ImageObject", Its a perfect location for buying a vacation home to rent out, so you can make some extra income while your family isnt using the property. }, Can you imagine being able to pack up and head out to your very own home-away-from-home on weekends? Not only that, but Portsmouth awards visitors with more than three centuries of historic neighborhoods, the famous Seawall, breathtaking views and some of the regions best restaurants; its no wonder the city has become a popular vacation destination. "headline": "Best Places To Buy Vacation Rental Property [Updated 2022]", Housing prices here are a little lower than more populated towns along the lake, like Tahoe City. If youre looking for one of the cheapest places to buy a vacation home, look no further than Oscoda. Meanwhile, vacation rental investors can enjoy the fundamentals of a popular city without having to live in the middle of a major metropolitan area. If for nothing else, people choose to vacation in many different parts of the world for many different reasons. Those bigger properties are usually more expensive than the median list price, but could translate to more earning potential, an important consideration when navigating this market. "@id": "https://www.fortunebuilders.com/vacation-rentals-top-10-alternative-markets-for-investment-properties/" This New Hampshire locale is in the heart of the White Mountains region, making it a year-round magnet for nature-seekers who come to swoosh down the slopes, hike, golf, fish, and enjoy some of the countrys best leaf peeping. Family-friendly stays are also popular here, so buyers should look for ways to maximize the number of people their rentals can accommodate. The Upper Peninsula (U.P.) You, of course, have homeowners insurance but should also consider a home warranty to protect your appliances and home systems. Snowmobiling is very popular in Munising as well as throughout the rest of Michigan. However, if you would like to acquire a vacation investment property with a partner, be sure to treat the venture just as you would in business. Bordering each of these states, Dubuque has become a popular destination for those looking to visit each area. By submitting this form, you agree to receive updates and marketing communications from Evolve. According to a local study, tourism grew almost 10 percent in recent years. A lot goes into determining a bustling real estate market, and while you may not find your perfect investment in one of the cities above perhaps the market factors open your eyes to a similarly positioned area. There are fun attractions like Ripleys Aquarium of the Smokies, where you can pet penguins and turtles and go for a glass-bottomed boat ride. With a diversified economy thats not entirely hinged on tourism, the region has a strong real estate market for any property type, according to our RES team. of the Mitten State is truly a sight to behold. Having a vacation home is part of the American dream and something many people fantasize about when dealing with a stressful workday. ], What can you afford? You can also visit Skylift Park and see if youre brave enough to walk across the longest pedestrian suspension bridge in North America. Keep in mind these markets were chosen based on the previous years data, and the investor should thoroughly evaluate any market before choosing. For many, the idea of investing in a vacation rental investment property sounds enticing, and looking into the best places to buy vacation rental property is the best place to start. As these restrictions slowly began to lift across the world, vacationers rebooked their trips at an alarming rate. "https://www.fortunebuilders.com/wp-content/uploads/2021/04/best-places-to-buy-vacation-rental-property-2021.jpg", "@type": "WebPage", From a Jurassic Park tribute to a famed athletes old stomping grounds, level up your vacation experience by staying in one of these cool places to rent. Also commanding the number one spot on our list of best places to buy a lake house, this mountainous, lake-dotted region in northeast Pennsylvania holds a consistent draw for East Coast urbanites looking to slip away for a vacation in nature. Primary cities like San Diego and Miami, have proven to be great spots for savvy investors. With this list of things to do, Gatlinburg is one of the best places to buy a vacation home. Hot tubs, spacious decks with mountain views, and game rooms all add value to secluded cabins here, helping your property snag attention from eager vacationers. For investors unfamiliar with the southern states, Tennessee brings in more than 11 million tourists each year. Amenities like fire pits, hot tubs, and thoughtful winter extras (think sleds, warm blankets, and hot chocolate) are all important amenities for mountain properties that can help you rack up five-star reviews in this area. Youre just a short drive from one of the most beautiful places in North America. Hikers can get out on the trails in the mountains surrounding Lake Tahoe. After all, the industry is on pace to grow into a nearly $63 billion space over the next few years. The cost of living in Munising is about eight percent below the national average, and the median home list price here is around $135,000. Read on to learn exactly where to look when choosing the right investment property. Any form of travel came to a sudden halt, and almost all of the best places to buy vacation rental properties were either closed or had to implement severe restrictions. You dont have to look too hard. As the second largest city in New York, Buffalo is great for real estate investors hoping to maximize affordability and occupancy potential. Often the best strategy is to list your home on multiple listing sites and consistently review similar properties. }. But were here with some of the best cities in the U.S. to consider when buying a vacation home. Earning equity in a property while someone else pays off the mortgage mixed with benefiting from amazing tax deductions sounds great, right? However, not all markets will be conducive to creating an income stream that will consistently cover all expenses. Whether youre drawn to one of our tried-and-true hotspots or enticed by the untapped potential of an up-and-comer, our Real Estate Services (RES) team can help you take the next step. The Mighty Mitten makes an appearance again. Many travelers venture to Huntington each year to see the fall leaves change colors or simply get outside. Small-town charm meets laidback mountain vibes in Bryson City, a place that still feels a bit undiscovered. Like any real estate investment, you should make sure youre financially prepared and looking in the most strategic locations. Located along the Mississippi River, Dubuque is best known for its thriving port and close proximity to several institutions of higher education. Before hopping on the bridge to get to the U.P., make sure you pick up some fudgeMackinac Island fudge is legendary in the Mitten State. Sevierville offers numerous outdoor activities for adventure seekers, including canoeing, horseback riding, and more. Even after the pandemic, properties around 2-3 hours away from metropolitan areas will be popular among travelers. Learn more about how to determine the best time to buy a home. Learn how to get started in real estate investing by attending our FREE online real estate class. AHS breaks down the pros and cons of each to help find the best option for you. This includes looking at statistics on property price, average rental income, occupancy rates, and cash on cash returns. Munising might be one of the best places to own a vacation home because you get a picture-perfect view for an affordable price. Located along the central coast of Oregon, travelers who visit Waldport may feel as though theyve stumbled upon one of the Pacific Northwests best-kept secrets. Munising features the Pictured Rocks, which consist of 15 miles of breathtakingly colorful sandstone, naturally formed into caves and other unique formations. Dig deeper into top investment markets and make a smart vacation home purchase. For the beachgoers in the family, Cocoa Beach is only an hour awayjust close enough to pack in a day full of sun and sand. All of this makes North Conway a prime spot for vacation rental owners who want to provide a home base for outdoorsy, family-friendly, or group travelers. If you travel through lower Michigan to get to the U.P., you get to cross the majestic Mackinac Bridge, the longest suspension bridge in the western hemisphere. But when you want a space to call your own, buying a vacation home to mold into your own personal happy place may be just the thing you need. }, However, their return on investment isnt without a significant caveat: availability. Expenses: Expenses can range anywhere from routine incidentals such as the mortgage, fees, and utilities to unplanned repairs and emergencies.