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According to a Trip Advisor survey released in April last year due to the Covid pandemic, we were all cooped up liming ourselves to our home but more than two-thirds of Americans said they plan to travel this summer, and three-quarters of them plan to stay within the country.For owners of short-term vacation rentals, it is a time to kill, after they faced a devastating bust last year.So if buy short-term rentals can make a fortune if you know where to get the best return on your investment dollars.If you are thinking of buying a property to list on a site like Airbnb or Vrbo then the data team at Realtor.com found the most profitable real estate markets.These are the places where extra rental income can really help cushion the mortgages.Luis D. Ortiz, a real estate broker who stars on Netflix’s “World’s Most Amazing Vacation Rentals which features amazing properties around the globe he said that this is a very good time to buy cheap and make a lot of money in return.Ortiz says a vacation rental gives a sense of home, which the hotels can’t give you.They found smaller resort towns in remote locations, to enjoy the outdoors with family and friends.And these are within driving distance to big cities, so people are not confined to a small hotel room.Compared with pre-pandemic levels short-term vacation rentals are seeing occupancy rates going up.
According to AirDNA, a real estate data company that collects data on millions of Airbnb and Vrbo rentals, nationally the occupancy rates skyrocketed 21% in May 2021 compared with May 2019.
Omitting May 2020 due to the COVID-19 pandemic.These vacation properties’ rental prices have risen by about 8.3% annually last year itself.Ortiz said data for the 250 largest rental markets were pulled to find the most profitable places to own an Airbnb-type rental.AirDNA data were used to find where short-term rental revenue grew the most from June 2020 to May 2021.One city per state was picked to ensure geographic diversity and they tried to figure out how many days an owner would need to rent out the property to cover mortgage payments.Then median list price for a home in that city was looked at (With an assumption that buyers had a 20% down payment and a 3% mortgage interest rate.)
the calculations of how many days per month he would need to rent out the property, was calculated using the average daily rate for a rental in that market.As people are waiting to explore new things buyers should start to look at building unique experiences on their property.Reference Source: Realtorhttps://www.compareclosing.com/mortgagenews/vacation-rental-is-a-fun-way-of-investment-and-to-reduce-your-mortgage-pressure/