Vacation/short term rentals

[Tommy Kerwick Jr.]

Hey BP fam!

Where do you own vacation rentals? Where are you seeing growth/popularity/profits/success with Air BnB or VRBO?

Interested to know where people are purchasing where they feel they're receiving great ROI! I own 2. The Jersey Shore (1 block from the beach) and Stratton Mountain (about 3 streets off the base of the mountain).

Share your story!

[Eric P.]

From https://www.airdna.co/blog/best-places-to-buy-a-vacation-rental-home-2018:

The y-axis is profits & the x-axis is property cost. You want to maximize profits & minimize cost so the sweet spot is the upper left of the graph. If you hover over the bubbles in the upper left you’ll see that they’re almost all in Tennessee & Florida.

Which makes sense bc, no matter how great other parts of the US may seem, your ROI drops sharply if there's even a small sliver of the year that's off-season. TN & FL are the sweet spot where weather is nice year-round & properties aren't too expensive (as they are in California & Hawaii). If you don't like TN & FL, your next best options are the neighboring states.

If you wanna invest elsewhere bc you want to use your vacation home personally, that’s one thing. But for pure ROI, you can’t refute the data.

There really is no magical formula here: inexpensive properties + year-round bookings = highest profits