5 Best Cities to Invest in Short Term Real Estate

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With interest rates still low and the housing market in a slump, many people are looking to short term real estate investing as a viable option. With that in mind, we’ve compiled a list of 5 cities that offer good investment opportunities for those who don’t want to buy property outright:

1. Phoenix , AZ

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Phoenix has become a flourishing hub for short term real estate investors, with many opportunities available. Even better, you don’t even have to leave the comforts of your own home to invest: Phoenix is one of the best cities to purchase vacation rentals.

It’s simple and hassle free and you can earn passive income while traveling or working from home. Plus, with the average rental price for a Phoenix vacation rental at only $134 per night, it’s a truly affordable option that really opens up your options as an investor.

Benefits of real estate in Phoenix:

-The average rate of return on a vacation rental in Phoenix is 14%.
-Renters typically stay an average of 7 nights, providing you regular and consistent income.
-It is a hub for bachelor/bachelorette parties for those meeting between the east and west coasts.

2. Seattle, WA

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With a booming tech industry that’s attracting a slew of millennials, Seattle has seen a huge demand for short term rentals. Plus, the city is full of amenities and entertainment options that make it an easy sell. And unlike Phoenix where you have to go through the hassle of listing your home with a realtor or third party rental site, Seattle has one of the most popular and efficient vacation rental sites: Airbnb.

Benefits of real estate in Seattle:

-Seattle is home to some of the biggest names in tech, including Microsoft and Amazon.
-This booming industry brings in a huge number of millennials who typically prefer renting short term or Airbnbs for their vacations.
-The average rate of return on a vacation rental in Seattle is 16%.

3. Atlanta , GA

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Atlanta has seen a rise in short term real estate investing thanks to its burgeoning film industry. According to this article from The Real Deal, “More than $3 billion of film-production related activity occurred in fiscal 2015 according to the state’s film office, Film Atlanta,” and that number continues to grow. So it should come as no surprise that the film industry is becoming an increasingly lucrative sector for real estate investors.

Benefits of real estate in Atlanta:

-Atlanta is home to a number of popular TV and movie filming sites (including Tyler Perry’s studio and Tyler Perry’s House) that double as being great vacation rental sites.
-The average rate of return on a vacation rental in Atlanta is 15%.
-Short term rentals are highly popular with millennials who prefer renting Airbnbs or short term rentals.

Atlanta as a real estate investment hub:

-The film industry has brought in over $3 billion annually to the city’s economy.
-This large sum of money is bringing more people to Atlanta, which also brings more hotels and Airbnbs for investors to buy into.

4. Tampa Bay , FL

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Tampa Bay has seen a similar rise in short term rentals as Atlanta. The local Tampa Bay Times even reported that “the number of Airbnb guests more than doubled last year to 1.1 million” and the city’s top three neighborhoods for Airbnb are all located right around downtown Tampa. Plus, with Florida being among one of the top three states for international tourists, it’s a prime spot for investors.

Benefits of real estate in Tampa Bay:

-Tampa Bay has a thriving film industry with popular local sites being used as filming locations.
-Airbnb hosts have earned over $100 million renting out their homes and apartments to guests from around the world.
-International visitors flock to Florida and Tampa in particular.
-Tampa Bay has some of the most expensive real estate in the state, meaning that rental prices are high and you can charge more for rentals.

5. Los Angeles, CA

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While LA’s real estate is some of the most expensive in the US, it also has a higher average short term rental rate than any other city on this list. In fact, LA County residents can make as much as $4,085 per month from their homes with Airbnb rentals. The site even recently released a report showing exactly how lucrative short term rentals are for LA residents.

Benefits of real estate in Los Angeles:

-Tons of people flock to Los Angeles every year, including more than 30 million visitors. It’s the perfect market for investors looking to get into the vacation rental business.
-LA has some of the highest property values in the country.
-Los Angeles is home to Hollywood, which has made it one of the top movie filming locations in the world.

Reasons for investing in short term real estate

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After reading the title of this article, many people might ask why people would invest in real estate. There are several reasons you should consider investing in real estate. The most important reason is that it gives you an opportunity to build wealth over time through rental income and appreciation.

This is true whether you’re buying a house to live in yourself or whether you’re buying a house to rent out. Either way, you are building wealth through real estate investing. It is also another asset class that is very easy to start with for beginners.

One of the reasons so many people invest in real estate is that it’s one of the best ways to build long-term wealth. Of course, real estate investing is not the only way to build long-term wealth. A quick example of two other ways that are very efficient methods for building long-term wealth as well as real estate investing: 1) buy and hold index fund investments such as those from Vanguard or Fidelity 2) invest in business franchises.

Real Estate Investing for Beginners

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The reason why real estate is such a great way to build long-term wealth is because you take advantage of the power of leverage through low down payments, the ability to use creative financing, and you can find opportunities that other investors may not see. It’s also a tangible asset where you have an actual building (or houses).

The first advantage of real estate investing over other investments is that you can often get into the game with relatively low down payments. For example, there are many advertisements for no money down deals in commercial real estate. Although it’s hard to find these deals.

In conclusion, there are many factors which are granted consideration when seeking to establish short term real estate. The statement implies that as an investor there are various entities which need to be considered so that the anticipated level or returns can be achieved in the long run.

It is important to have a profound overview of the significant elements and some of the ways through which the level of profitability can be improved or realized in the long run. It is important to have a diverse and articulate overview of the specific elements and the mechanisms which can lead to expansive returns which emanate for the situation. The specific factors which have been highlighted are of critical and utmost importance.