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Everyone seems to be looking for a good investment opportunity these days, and it’s hard to go wrong with real estate. Maybe you’re thinking of buying a second home. You might even be thinking of using it as a vacation rental. Although there can be challenges that go along with a vacation rental, like maintaining the property, there are also benefits, such as the potential for rental income and the enjoyment the property could provide to family and friends.
Know Before You Go
You’ll want to consider the location of the vacation rental. Are you a hands-on person who wants to be nearby so you can oversee everything? Are you OK with being hundred of miles away and allowing someone else to take care of the day-to-day operations? Make sure you do some research and know what best meets your needs before taking the plunge. Still, there is bound to be just the right vacation rental for you. Here are four cities that could fit the bill.
1. Branson (Missouri)
If you’ve never heard of Branson, just think of it as the biggest little town in Missouri. Located in the Ozark Mountains in the southwest part of the state, Branson has distinguished itself as an entertainment destination with some of the biggest names in country music. But it isn’t just country music shows that make Branson so popular; there are also theme parks, museums, and fine dining.
With all that Branson has going for it, it’s easy to see why it’d be a good spot for a vacation rental. The average cost of a home in Branson is under $200,000. Like most tourist towns, Branson was affected by the pandemic but is beginning to recover.
2. Myrtle Beach (South Carolina)
Myrtle Beach is a perennial favorite when it comes to tourism. Young and old seem to have fallen in love with its beautiful white sand beaches that stretch for miles. But there’s more to do than just bask in the sun and lie on the beach. Golfing, horseback riding, and visiting famous historical sites and museums are other popular activities.
The city has a population of about 33,000 people, so it’s still small enough to have downhome charm. The average cost of a home in Myrtle Beach is under $300,000. Remember, buying a vacation rental doesn’t have to be difficult if you have the right lender.
3. Kissimmee (Florida)
Kissimmee may not be a stand-alone destination in itself, but it’s a jewel when you consider it’s just 30 minutes away from one of the most popular amusement parks on the planet: Disney World. SeaWorld Orland, Universal Studios Florida, and Gatorland are also close by. But with an average yearly attendance of more than 58 million people, Disney World is still king of the amusement parks.
Kissimmee has a population of about 70,000 and is known to be relatively safe as Florida cities go. The average price of a home in Kissimmee is under $300,000. An interesting fact about the city is that it’s majority-minority, with Latinos making up about 60 percent of the population.
4. Bangor (Maine)
Believe it or not, Bangor is a great year-round destination for tourists. In summer, Bangor becomes a picturesque village with quaint shops and eateries, and in winter, the town becomes a winter wonderland with skiing, snowboarding, and other winter sports. Compared to other American cities of its size, Bangor is pretty safe. Maybe that’s due to the giant Paul Bunyon statue in town.
In terms of population, Bangor has about 30,000 people. And the average price of a home in the city is a little over $200,000. An interesting pop culture fact about Bangor is that it’s the home of writer Stephen King and the inspiration for the fictional city of Derry.
A second home used as a vacation rental property can be a good real estate investment, but you’ll want to make sure you choose a property in a city that has good vacation rental potential. Cities such as Branson, Myrtle Beach, Kissimmee, and Branson are all hot spots with attractions that are popular with tourists from all over the world. This being the case, it’s probably hard to go wrong with a vacation rental in any of those cities.