Real estate in general has long been a means of wealth creation for Americans. But most Americans don’t venture beyond their home base when it comes to investing in real estate.
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Owning rental property in an active market can generate both long-term capital gains and immediate cash flow. In many areas, rental income can far exceed the cost of a property’s mortgage. This basically means that you get paid for owning the property as it increases in value.
However, to reach the best of this investment, you should choose a property in a popular area that will generate steady rental income. Below is a list of his five areas that do just that.
30A, Florida
Although the term “30A” is not well known outside of the Southeast, it is a huge rental real estate area with room for growth. 30A refers to the highway between the popular resort destinations of Destin, Florida, and Panama City, where small communities filled with charm and stunning scenery dot the sandy beaches of the Gulf of Mexico.
Small communities like Santa Rosa, Rosemary Beach, and Seaside are adjacent to busy tourist destinations during peak season, but they also ooze small-town charm and offer beautiful beaches, delicious seafood, and friendly locals. We also maintain the strength of our industry: our people. With more and more visitors seeking “authentic” travel experiences, places like 30A are well-positioned to be great investments.
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Mammoth Lakes, California
Mammoth Lakes is a small resort town about 30 minutes south of the eastern entrance to Yosemite National Park. Mammoth Lakes is primarily known as California’s best ski area, but it’s actually a year-round resort. Rental income is high during the extra-long ski season, which runs from November to July 4, but also peaks in the summer, when outdoor enthusiasts flock to the city to enjoy fishing, biking, hiking, boating, and the mountains. reach. cycling.
Real estate values are rising rapidly, and short-term rental prices are skyrocketing, with a simple one-bedroom apartment sometimes exceeding $450 per night during peak seasons.
Poconos, Pennsylvania
Poconos seem to know a thing or two when it comes to investing in vacation destinations. Located in northeastern Pennsylvania, the Poconos offers year-round fun, from water sports and waterfalls in the summer to snowboarding and skiing in the winter.
The Poconos has a timeless charm and has been a popular vacation spot for decades, but vacation rental prices are still easily within reach. Coupled with the fact that many vacation homes in the Poconos earn over $40,000 per year in rental income, the risk/reward ratio for this type of investment is low.
windham, new york
Upstate New York has always been a popular vacation destination for urbanites escaping New York City. But in terms of investment potential, the Hamptons and Hudson River Valley hold their own, with property values costing hundreds of thousands or even millions of dollars more than alternative options like Wyndham. It has become a victim of popularity.
In addition to its popularity as a ski destination, Windham is also a sophisticated summer destination with outdoor recreation in addition to the town’s art galleries, wine bars, and excellent restaurants. With a median list price of less than $500,000, Wyndham remains an affordable option for those looking to invest in rental real estate.
McGaheysville, Virginia
McGaheysville is also a year-round vacation destination with small-town charm. Visitors to this popular “secluded” vacation spot enjoy recreation in both winter and summer, but its biggest attraction is Shenandoah National Park, which is home to part of the Appalachian Trail.
McGaugheysville’s median annual return is a whopping $49,000, meaning almost all rental property investors are making a profit, and some are truly getting a windfall. This destination is relatively unknown west of the Mississippi River, so there is still plenty of room for growth for potential investors.
GOBankingRates Details
This article originally appeared on GOBankingRates.com: Why buying property in these vacation destinations is a great investment
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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