Many homeowners and investors may recall the mortgage crisis that turned the market on its head ten years ago. Since then, there has been a reluctance to invest in the mortgage industry due to the recency of the Great Recession and the post-effects that many individuals felt. However, the upsides of investing in real estate cannot be ignored. Visio Account Executive Klint McKinney shares why he encourages investors to invest in vacation (short-term) rentals:
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You could make two-three times the amount of income you would make compared to a long-term rental
In our own city of Austin, short-term rentals are way cheaper than hotels and typically include the whole house. Since they are so attractive to visitors and increasing in popularity, their income generation potential is substantial -
Vacation rental homes draw big groups and let visitors interact with the culture.
Often, large groups look for accommodations where the whole group can stay and get a feel of the city's culture. For example, in a city like New Orleans, you can customize a short-term rental to showcase the Creole influence. -
Vacation rentals can be purchased in city-specific or state-specific destinations.
Think of places where visitors want to go that are city-specific such as Philadelphia or Las Vegas, or state-specific such as New Jersey or Florida.
Getting started on your vacation rental portfolio may seem daunting. "To learn what it takes to buy one rental property, attend a real estate seminar," Klint advises. "Find out the local attractions your desired market has to offer and look at the metrics." By looking at the metrics your market has to offer, such as the number of people that visit that area, historical markers, and segments, you can evaluate your ROI and expect four-ten times the revenue during peak seasons.
If you’re interested in the short-term rental space and are ready to generate some strong returns, contact us for more inquiries.
Andy Nguyen was born and raised in Houston, Texas. As a 5th-year senior at the University of Texas at Austin, Andy studies Economics and Finance and hopes to pursue a career in consulting. As a consultant, Andy hopes to bring strategic impact and deliver with results backed with vast, insightful data. After a successful career, Andy aspires to open his own restaurant and serve delicious, beautifully crafted Vietnamese dishes.
Dheeraj Nadella is a junior at the University of Texas at Austin. He studies Mechanical Engineering and Business and hopes to pursue a career in engineering. As an engineer, Dheeraj aims to learn the technicalities of a business from an engineering standpoint in order to one day pursue a career in entrepreneurship and run his own business. After a successful career, Dheeraj aspires to travel around the world and pursue non-profit opportunities.
