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Buying a short-term rental property through sites like Airbnb and VRBO can be a very wise investment — if you choose the right location. Properties near the beach can be particularly lucrative, as many people want proximity to the water for their seasonal getaways.
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Realtor.com identified the best places to buy a beach house as a rental property by comparing the average annual return on a home to what you would pay for it — also known as the yield. Based on this analysis, these are the best places to buy a beach house if you are looking for short-term rental income.
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1. Pawleys Island, South Carolina
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Average house price: $497,237
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Annual sales potential: $41,995
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Expected yield: 19.8%
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©Airbnb
2. East Coast of Michigan, Michigan
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Average house price: $208,513
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Annual sales potential: $20,265
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Expected yield: 16.7%
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3. Cape San Blas, Florida
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Average house price: $798,807
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Annual sales potential: $64,264
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Expected yield: 12.8%
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4. Gulfport and Biloxi, Mississippi
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Average house price: $303,930
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Annual sales potential: $23,646
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Expected yield: 12.4%
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5. Wilmington, Delaware
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Average house price: $614,856
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Annual sales potential: $35,361
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Expected yield: 11.2%
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6. Lincoln City/Newport, Oregon
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Average house price: $597,379
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Annual sales potential: $43,241
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Expected yield: 11.10%
Jeff Goulden/Getty Images/iStockphoto
7. Grayshaven, Washington
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Average house price: $421,627
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Annual sales potential: $29,331
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Expected yield: 11%
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8. Outer Banks, North Carolina
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Average house price: $705,939
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Annual sales potential: $34,237
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Expected yield: 10.5%
RoschetzkyIstockPhoto / Getty Images/iStockphoto
9. Corpus Christi, Texas
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Average house price: $541,169
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Annual sales potential: $27,154
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Expected yield: 10.4%
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10. Gulf Coast, Alabama
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Average house price: $615,535
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Annual sales potential: $112,281
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Expected yield: 10.3%
Data provided by Realtor.com and correct as of June 23, 2024.
More from GOBankingRates
This article originally appeared on GOBankingRates.com: 10 Best Places to Buy a Beach House to Rent Out for Passive Income
The post 10 Best Places to Buy a Beach House to Rent Out for Passive Income first appeared on Frugals ca.
