Are you ready to turn your real estate dreams into a wealth-building reality? We’re here to guide you through the exciting journey of investing in properties for short-term rentals. It all starts with a burning question on every investor’s mind: “How much can I make from rent?”
If you’re eyeing the long-term real estate game, we’ve got you covered. Check out this must-read article we published earlier this year. It tells the story of our own Eric Badalov, who owns multiple homes in the Wilmington area. He shares invaluable insights for aspiring landlords.
But today, we’re here to thrill those of you who crave quick returns with turnkey short-term rentals. When you live by the beach, vacation rentals aren’t just a possibility – they’re your golden ticket to wealth. Picture this: families flock in on a sunny Saturday and depart a week later, leaving your investment brimming with potential.
Now, let’s dive into the intricacies. Short-term property purchases often come with a tad more complexity. Unless you’re paying in cash, lenders might ask for a heftier down payment, somewhere around 20% to 25% of the asking price. And don’t forget to budget for furnishing these lovely homes to entice renters.
But here’s the game-changer – you can leverage your rental income potential to qualify for a loan. Imagine you’re teetering on the edge of mortgage approval, and your financials just don’t quite cut it. Some lenders will take a closer look at the property’s rental history. Prove that your desired property has a track record of cash flow, and voila, that income can count as your own, even before you’ve snagged the property.
Now, let’s get down to brass tacks. How much can you really make?
Our team did the legwork for you. We analyzed 278 properties sold within the past year, all of them boasting official rental histories. We then compared these figures with next summer’s listings on Airbnb and VRBO. After forecasting the rent for the upcoming summer season and making a conservative estimate that your investment property would be booked for 14 weeks straight – from Memorial Day to Labor Day – we factored in another 12 weeks at a slightly lower rate.
Of course, property size and condition play a crucial role in what you can charge. Single-family homes command higher rates than condos, and a five-bedroom property outshines a three-bedroom gem. These numbers are ballpark figures only, but they’ll give you a solid sense of whether the world of short-term rentals is your oyster.
|Location||Type of Property||Range of Annual Income|
|Wrightsville Beach||Condos||$37,000 – $56,000|
|Wrightsville Beach||Single Family Homes||$97,000 – $125,000|
|Carolina Beach||Condos||$25,000 – $40,000|
|Carolina Beach||Single Family Homes||$70,000 – $95,000|
|Kure Beach||Condos||$39,000 – $55,000|
|Kure Beach||Single Family Homes||$73,000 – $98,000|
|Surf City/Topsail||Condos||$31,000 – $44,000|
|Surf City/Topsail||Single Family Homes||$82,000 – $100,000|
|Oak Island||Condos||$21,000 – $30,000|
|Oak Island||Single Family Homes||$56,000 – $74,000|
|Holden Beach||Single Family Homes||$57,000 – $75,000|
|Ocean Isle||Condos||$33,000 – $47,000|
|Ocean Isle||Single Family Homes||$91,000 – $108,000|
|Sunset Beach||Condos||$20,000 – $32,000|
|Sunset Beach||Single Family Homes||$66,000 – $85,000|
|Bald Head Island||Single Family Homes||$112,000 – $128,000|
Remember, these numbers aren’t all profit. As an investment owner, you’ll have other expenses to consider – monthly fees to property management firms, HOA fees, and regular upkeep and maintenance (because, let’s face it, all rentals need occasional repairs).
However, consider these numbers your springboard to success. Owning a vacation rental is one of the fastest ways to build wealth. If you’re eager to dive deeper into this lucrative venture, the next step is a chat with a Just For Buyers Realty agent. We’re here to help you find the perfect property that’ll fill your bank account with cash. Call us today at 910-202-4813, and let’s make your real estate dreams come true!