Market for Vacation Home/Short Term Rental

Short-Term & Vacation Rental Discussions
4yFollow

Market for Vacation Home/Short Term Rental

Gbenga Okusanya
Member since 2021 · 1 post · 2 votes

My first bigger pockets post! We are considering purchasing a vacation home in the next year that will also serve as a short-term rental when we aren't using it. We live on the east coast and would love something accessible by a short-flight and would be reasonably easy to manage from a distance. We are looking for a beach community. I am hoping to get a recommendation on a market or a turn-key short-term rental property business that I could look into. Thanks.

2Reply
67 views

Most Popular Reply

Sean Bramble
Investor · United States · Member since 2020 · 202 posts · 284 votes
4y

The answer to this question changes constantly as real estate values evolve. If you’re investing primarily for return (instead of personal preferences beyond money making) you should choose the market with low priced homes relative to current and long-term revenue/ appreciation potential. Most people on here will recommend a market that worked great for them when they invested 1-2 years ago, but if you bought there now your return would be substantially lower due to massive appreciation that already happened in 20-21 … use mashvisor, Pricelabs, Airdna, Zillow, Rabbu, Google, etc to decide for yourself where is best. Don’t be afraid to get under the hood and get your hands dirty with analysis. It’s time consuming, but not rocket science - all basics arithmetic we learned in grade school. Good luck!

5Reply
See this reply in the discussion

21 Replies

Jump to latestLatest
  • Kevin Pillow
    Realtor · OK · Member since 2020 · 139 posts · 165 votes
    4y

    Hi Gbenga, congratulations on your first post! Destin and Miramar Beach have great beach communities and also a strong short term rental market. It’s also within 5 hours  drivable distance of most states in the southern region. Lots of resources here if you have more questions about our market.

    1Reply
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    4y

    Myrtle Beach.

    Great beaches and tons to do there.

    1Reply
  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    4y

    Welcome @Gbenga Okusanya. Do a search on this forum and you will find a ton of info covering this topic. Easy peasey.

    0Reply
  • Jossalyn Wallace
    Real Estate Agent · Destin, FL · Member since 2019 · 116 posts · 111 votes
    4y

    Hi there! Congratulations on taking the first step! I am a realtor in the FL Panhandle (from Panama City Beach to Pensacola) and we have a very strong short term and long term rental market. I often fly to NY (only an hour and a half flight).

    1Reply
  • Carson McGee
    Rental Property Investor · Charlotte, NC · Member since 2021 · 71 posts · 49 votes
    4y

    Hello! 

    Welcome to Bigger Pockets! I own Vacation Rentals in Panama City Beach, Orlando, & Maui. Of those, it sounds like Panama City Beach may be the most feasible market. It is a great beach town, with a better purchase price than some other high-end markets. If you are interested in revenue projections or property management feel free to reach out!

    1Reply
  • Valentina Calla
    Real Estate Agent · Orlando, FL · Member since 2021 · 65 posts · 53 votes
    4y

    Hello Gbenga! Welcome to Bigger Pockets! I would definitely consider Florida. A lot of people are moving to Florida ever since the pandemic so anywhere you decide I am sure it will be profitable. Port Charlotte, Sarasota, and Clearwater are some examples of great beach towns that allow STRs. Feel free to contact me if you want to discuss your options further!

    1Reply
  • Sean Bramble
    Investor · United States · Member since 2020 · 202 posts · 284 votes
    4y

    The answer to this question changes constantly as real estate values evolve. If you’re investing primarily for return (instead of personal preferences beyond money making) you should choose the market with low priced homes relative to current and long-term revenue/ appreciation potential. Most people on here will recommend a market that worked great for them when they invested 1-2 years ago, but if you bought there now your return would be substantially lower due to massive appreciation that already happened in 20-21 … use mashvisor, Pricelabs, Airdna, Zillow, Rabbu, Google, etc to decide for yourself where is best. Don’t be afraid to get under the hood and get your hands dirty with analysis. It’s time consuming, but not rocket science - all basics arithmetic we learned in grade school. Good luck!

    5Reply
  • Michael PorchePro Member
    Rental Property Investor · Boise, ID · Member since 2017 · 220 posts · 101 votes
    4y

    Hey! Well, you definitely have a lot of options! A lot of great beach communities that perform decently well as a short term rental where you can get killer cashflow. I got quite a few suggestions. I'll PM you

    0Reply
  • Zachary Bliss
    Realtor · Bradenton, FL (Bradenton) · Member since 2020 · 88 posts · 44 votes
    4y

    Hello @Gbenga Okusanya

    Unfortunately a lot of the beach areas of FL have been cracking down on STRs. But over here where I am located in Bradenton, there are no restrictions as of yet. The Anna Maria Island / Longboat Key areas are great for STRs, I would recommend taking a look over here. Feel free to reach out to me if you would like any more information on the area.

    0Reply
  • Myrtle Mike ThompsonBusiness Member
    Realtor · Myrtle Beach, SC · Member since 2016 · 352 posts · 204 votes
    4y

    @Gbenga Okusanya Myrtle Beach is where it's at.  Drivable from anywhere on the east coast or you can utilize our award-winning airport.

    [email protected]843-999-2301
    Myrtle Mike Real Estate580 Reviews
    WebsiteView Page
    2Reply
  • Katie Hole
    Realtor · Myrtle Beach, SC · Member since 2017 · 39 posts · 11 votes
    4y

    Myrtle Beach SC! We are easy to get to and have 60 miles of beach to choose from! 

    1Reply
  • Mark H. Porter
    Investor · SC NC, VA · Member since 2020 · 1k+ posts · 756 votes
    4y

    Hi, you need to decide whether the foremost purpose is revenue generation or a place to build family memories. If revenue generation, you need to look at it from The standpoint of others - beach, lazy river, restaurants, child care, amusements, etc.. all add substantial costs in the form of HOA fees.

    If primarily as a place for you to vacation and you want revenue generation just to help that, you may want to stay away from the condo-hotel concept as it can get quite crowded and use of the amenities can get quite competitive in-season.

    I would also suggest you start reading up on the pros and cons.  Also, start digging into financial concepts such as Operational Expenses, Income, Net Operating Income, chart of accounts, debt servicing, management  and reservation fees, capital expenses, pre-tax cash flow, depreciation and depreciation recapture, capital gains, etc…

    I live in North Myrtle Beach and have a few rental houses on the beach along with commercial properties Elsewhere.  Concentrate on reducing your risk by getting as educated as possible before making a move.

    3Reply
  • Michael Weigum
    Real Estate Agent · Santa Rosa Beach, FL · Member since 2019 · 112 posts · 116 votes
    4y

    Hi @Gbenga Okusanya

    Welcome to Bigger Pockets! As others have said, Myrtle Beach is a great place to invest. Around 14 million people come here yearly to have fun in the sun. Makes for good rental opportunities. I own two properties here and they have been good for cashflow and appreciation. Check it out!

    1Reply
  • Dan Maciejewski
    Realtor · PInellas County Largo, FL · Member since 2016 · 902 posts · 810 votes
    4y

    Tampa Bay, specifically Pinellas County, has been a vacation-home Mecca for over a century and we shouldn't ever have a drop-off in occupancy.  There's plenty of beach -- from the county: 

    35 miles of powdery white beaches and nearly 588 miles of coastline. And, with an average of 361 days of sunny weather each year, you can enjoy the surf, sun and sand just about whenever you would like.

    And the great news, with the ever-changing vacation home landscape, is that Florida passed a bill that any town that allows short-term rentals cannot disallow them.  So there won't be any _____ is regulating short-term rentals, like I hear Denver is planning.

    2Reply
  • Mark Johnson
    Member since 2022 · 14 posts · 6 votes
    4y

    As someone who formally worked with government agencies, I can tell you the best places are Arizona, Maryland and Colorado mountains for Short term rentals. 

    0Reply
  • Nikki Yankowski
    Huntsville AL · Member since 2021 · 44 posts · 30 votes
    4y

    Air BnB is making sure to highlight stays and properties that are out of the norm. I think Florida is already highly competitive and creating a unique experience or highlightable listing along the coast will be hard, given so many big players are already there. 

    I would look at other vacation experiences and locations that aren't so obvious. For example, maybe Ginnie Springs, FL.? . It's a beautiful spring that can give marketable photos, you can create experiences with kayaks and bikes.  There is a small airport in Gainesville and you can even advertise to those visiting the university of Florida. I didn't do the numbers so this could be bad advice, but its just an example of a not so obvious markets I'd be looking into. 

    2Reply
  • Shane J. RenardBusiness Member
    Real Estate Broker · Green Bay WI · Member since 2021 · 65 posts · 28 votes
    4y

    First and foremost. Do your homework on a good management company in the local area where you decide to buy. Make sure they handle STR's. Interview their clients. Most management companies do not have a good system in place.

    1Reply
  • Shane Lafleur
    Real Estate Agent · Holly Springs, NC · Member since 2020 · 170 posts · 161 votes
    4y

    If you are looking for a beachy location, here in North Carolina they have wonderful beaches (Outer Banks, Carolina Beach, Oak Island, etc.) and are well established. With that said, I have a property in North Myrtle Beach that is performing well at the moment and my family has been going to Myrtle Beach over 15 years while living in the North East so naturally that was the market we decided we would start our investing journey. Its a fun family beach that we enjoy and know many others do as well hence the investment opportunity. I suggest start with the markets you know well, that you like to vacation and if they don't pencil out then maybe start your search for other markets to invest in that meet your needs. All depends on your comfort level and what personal goals you have for your investing journey. Best!!

    2Reply
  • Mark Johnson
    Member since 2022 · 14 posts · 6 votes
    4y

    I see you misspelled ski getaway haha just playing but 4 rentals are the key to financial independence 

    0Reply
  • Carlos Garcia
    Investor · FL · Member since 2020 · 41 posts · 19 votes
    4y
    Quote from @Gbenga Okusanya:

    My first bigger pockets post! We are considering purchasing a vacation home in the next year that will also serve as a short-term rental when we aren't using it. We live on the east coast and would love something accessible by a short-flight and would be reasonably easy to manage from a distance. We are looking for a beach community. I am hoping to get a recommendation on a market or a turn-key short-term rental property business that I could look into. Thanks.

     Hi there. I would recommend Panama City Beach, Destin can get a bit pricey, but the Emerald Coast in general are great options. I have one in PCB and doing great with the right remote management know-how in place. If you need well-connected agents who are also successful investors, look at @Melissa Haworth and/or @Matt "Roar" Gardner

    1Reply
  • Matt "Roar" Gardner
    Real Estate Agent · Tampa, FL · Member since 2018 · 464 posts · 452 votes
    4y

    @Carlos Garcia - Thanks for the shoutout, my friend! I hope your investments are continuing to rock and roll! 

    @Gbenga Okusanya - You'll definitely see a common trend of regions popup in these forums (Smokies in TN, Florida Panhandle (Destin/Panama City Beach), Orlando, etc.) -- These areas consistent producers, but you could really succeed anywhere.  As an agent and investor, I'm biased to the Destin area personally; however, I have plenty of investments in other locations.  I'm sure you'll crush it wherever you land; just make sure you get the support to set you up for success!

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free