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The Smartest Beach Towns To Invest in a Vacation Rental, Based on Your Budget
For many people, the reasons for buying a second home on the coast are twofold: The escape can serve as a spot for personal enjoyment and also as a means for generating extra cash flow when not in use. And while you might direct your real estate search based on a favorite getaway, it’s smart to take into consideration a home’s capitalization rate (or the annual return you can expect on your investment). Vacation rental manager Vacasa recently analyzed home sale prices, operating costs and average incomes of rental properties in high-density rental markets to create the ultimate guide for beach house hopefuls. If your destination is flexible, here are some of the top revenue-generating beach towns to buy in, based on your budget:
If money doesn’t matter…head to Key West
There’s no question the Conch Republic is a destination high on just about everyone’s list. Couple that with a limited supply of rental properties, and you’re guaranteed a great investment no matter where you buy. If you want to be the first to catch the eye of vacationers, however, Vacasa suggests going for properties with classic cottage charm and inviting outdoor spaces (bonus points for a pool), and finding one with a transient license in place if you want to rent short-term. Homes here go for a hefty median price of $804,400 but you can expect to earn back a median amount of $62,710 in annual rental revenue, making the home well worth the cost if you can swing it.
Source: coastalliving.com
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