Best Locations for Vacation Rentals

[Paul C.]

Like others here, I've recently gotten into vacation rentals with my first property in Vegas after having focused only on long-term rentals for the past 5 years.  While it's still early, the performance of the vacation rental has far surpassed my expectations and blows away the returns I'm getting on my long term portfolio.

I'd like to add more vacation properties soon, but am reluctant to do it in Vegas because the regulatory environment is not friendly for vacation rentals.

Any suggestions for where to look?  I'd love to hear your best ideas for:

1.  Location

2. Ideal type of property and price point (SFH or condo, # beds/baths, amenities like pools, etc.)

3.  Rough numbers (gross revenue, expenses, net income)

Thanks!

[Chad McMahan]

This is hot topic, to be sure. My advice is to make a list of suggested areas and do your own independent research to determine the best next market for you. I recommend calling two real estate companies/offices per town, asking for the managing broker and asking the broker to connect you with a realtor who specializes in working with vacation rental buyers. Ask those 2 realtors about the market and what return you can get. Ask for vacation rental proformas on 1-2 properties they recommend in your price range. If something sounds good, run it by a local (to that town) management company and get a 2nd opinion on the proforma(s).

This will help to take bad advice and chance out of the equation. If you have more questions, I'd be happy to help.