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Aloha! We are looking for the top markets to buy VRs in for our Vacation Rental Fund. What in your opinion are the best markets to spend 300-500k?

BILLY O'SULLIVAN Lehi, UT

January 25, 2019

The Vacation Rental Fund has been doing research for the last couple of years as we start to work with investors to roll properties into the find or buy properties with cash. Just wondering what the Vrolio community things are the top five markets to spend between $300,000 and $500,000. Aloha!! Billy O’Sullivan

Comments

Erica M. Orlando, FL

Jan 25 2019, 09:58 PM

Defintiely look into Crested Butte!!!! Vail Mountain just bought their mountain and they will be driving tons of tourism there. Prices there are still reasonable compared to other markets. Connect with Katy Wyly for that market. She's the expert! She also owns there. Below is a link to her profile. 
http://www.vrolio.com/KatyWyly

Kindest Regards, 

Erica Muller
Vrolio, Founder & CEO

"Buy land, they’re not making it anymore.” - Mark Twain


Matt M. , CA

Jan 28 2019, 02:37 AM

Palm Springs and Big Bear Lake in southern CA are established markets. Las Vegas is also another good one worth considering for your price range.

Matt Malouf

Author-Adventurepreneur


Alanna S. Larkspur, CA

Feb 01 2019, 08:59 PM

Kauai ;)

Steve F. Nashville, TN

Jan 30 2019, 04:26 AM

Short Term Rental (Airbnb) developments in Nashville are a great option as well.  Since the city put restrictions on non-owner occupied permits on residential SFHs, developers have started to find Commercially zoned land and build 5-20 townhome or detached HPR unit developments that you can get a non-owner occupied permit for and Airbnb them.  There are some 1-bedroom condo units around but all the hotel rooms being built in town are in direct competition to that.  

Units that are 2-4 bedrooms that can hold 8-12 people can make great money ($60k-$100k or more) depending on the part of town and development.  Nashville is a big group town with people coming here to hit the Honkytonks downtown, sporting events, concerts, festivals, etc.  Being dubbed the Bachelorette and Bachelor capital doesn't hurt.  There is so much demand for these types of properties from investors that the developments typically sell out quickly.  I've got good relationships with most of those developers to know what their current pricing and availability is and any upcoming new developments.  

I'm an investor here in Nashville and a realtor and works exclusively with investors, mostly out of state on STRs and multi-family properties.  Let me know if there is anything I can do to help.


Melvin C. Zabbar, 64

Feb 05 2019, 05:41 AM

Good evening Alanna, before investing in a Market, make sure that you do your research well. Demand is the most important thing besides calculating the right ROI. I can give you a snap shot of our country, Malta. It is strategically located between North Africa and Europe and makes it attractive to guests around the globe. In 2018, the population was standing around 700k (split between locals and foreign workers). In 2018 we had 2.3M paying guests visiting our island spending an average of 6 bed nights per guest. Property prices vary depending on the location. Let me know if you need any further assistance. Thank you. Regards, Melvin


Joe G. Destin, FL

Mar 06 2019, 09:29 PM

Hello Billy! Just joined here today! 

I am partial to the DESTIN FLORIDA market for many reasons. Year-round demand is one. We have had issues finding a better ROI in other major markets. Love to discuss anytime! 


Alanna S. Larkspur, CA

Mar 06 2019, 10:11 PM

I guess Hawaii is out, unless you can find something under 500K ;)

Steve S. Phoenix, AZ

Mar 08 2019, 09:38 PM

The Grand Canyon area! You can get excellent properties for between 300 and $500,000 there with good occupancy rates. I operate mine in that area feel free to ask questions.


Trisha F. Aptos, CA

Mar 10 2019, 02:34 AM

Hi Billy,

What a great post. I too would be interested in knowing hot markets.

 

Aloha,

 

Trisha

 

 

 

 

 

 


Avery C. Gatlinburg, TN

Jun 06 2019, 02:53 AM

My market, the Gatlinburg/Pigeon Forge/Smoky Mountain market has arguably the best returns for short term/vacation rentals in the country. We get 12 million visitors a year, and they all stay in short term rentals. We have very little hotel presence.  Since it's a true vacation rental market, there is little regulation on short-term rentals and likely never will be.

A good, meat and potatoes property can easily fetch a 20% cash on cash return. Property taxes are low (under $2000 a year for a $500k property), and it's easy to get properties that do not have HOA fees. Although the HOA's here are low as well, the average HOA is about $150 a month.  


ruth b. Sevierville, TN

Jun 06 2019, 03:17 AM

Ohh, Crested Butte is Seriously Stunning! I absolutely love that area. St. George is good for Long-Term Rentals.. I have heard that beachfront is great too.

The market out in The Smoky Mountains is WAY overpriced right now so with $300-500k to spend you might end up getting a money pit out here if it is just 1 property. :( Cant wait for the market to dip down again.

I know many investors are choosing to diversify and search for properties on the water-front near Knox-County or further out near Pittmam Center in TN. It really does seem like the best ROI would be elsewhere unless it is a deal before it hits the market.

I hope you found some great markets for your folks to invest in.

Sincerely,
Ruth