A new analysis shows that investment properties in beachside communities have the highest potential ROI. Here are the top hotspots for investment this year.
Vacation homes are a great investment for real estate investors. A short-term rental on the beach is a good option. Vacasa, an online vacation rental platform, has recently released its annual list of the top places to purchase a vacation home (link is external) based on capitalization rates or the rate of return.
According to Vacasa, which analyzed home sales and vacation rental data for the past 12 months, Lake Anna, Va. held the top spot in the 2023 rankings of the best places to buy a vacation house. Lake Anna, with a median sale of $405,500 and a cap rate 10.32%, is the highest vacation hotspot on the list.
Here are the top markets on Vacasa’s list of best places to purchase a vacation property in 2023.
1. Lake Anna, Va.
Cap rate: 10.32%
Average gross rental revenue: $64,121
Median sale price: $405,500
2. Okaloosa Island, Fla.
Cap rate: 9.08%
Average gross rental revenue: $53,832
Median sale price: $360,000
3. Sandbridge, Va.
Cap rate: 6.47%
Average gross rental revenue: $88,702
Median sale price: $928,900
4. Rehoboth Beach, Del.
Cap rate: 6.46%
Average gross rental revenue: $58,992
Median sale price: $618,000
5. Navarre, Fla.
Cap rate: 6.42%
Average gross rental revenue: $47,531
Median sale price: $420,000
6. Gulf Shores, Ala.
Cap rate: 6.09%
Average gross rental revenue: $48,169
Median sale price: $475,000
7. Palm Coast, Fla.
Cap rate: 5.69%
Average gross rental revenue: $38,212
Median sale price: $360,000
8. Corolla, N.C.
Cap rate: 5.47%
Average gross rental revenue: $80,423
Median sale price: $927,500
9. Nags Head, N.C.
Cap rate: 5.45%
Average gross rental revenue: $53,939
Median sale price: $615,500
10. Rockaway Beach, Ore.
Cap rate: 5.23%
Average gross rental revenue: $37,030
Median sale price: $340,000
Your dream vacation property is just a call away. Contact Preferred Properties of Texas today and let us help you find the haven you’ve been searching for. It’s time to turn your vacation dreams into cherished memories.
