AirDna’s top rental markets revealed 🏘️

Good morning! Let’s get to it☀️

• AirDna report top cities to invest in 2024 📈

• Crunching mortgage rate numbers - should you buy down? 🤔

• SF shows signs of a 2024 rebound - condos lag behind 🏠

• 🔥 Deal of the Day! 🔥: 5 bd | 7 ba | Rochester, MI

Best Places to Invest in Vacation Rentals 2024

The vacation rental market shows promise in 2024 despite declined revenues in 2023. As a real estate investor, you understand market fluctuations but seek reliable returns. The data indicates opportune areas to explore.

Focus your search inaketowns like Ellsworth, ME and Logan, OH. Proximity tonational parks and vibrant arts scenes draw travelers. Occupancy rates approach 60% with 18%+ gross rental yields in Logan. Competitively priced homes near in-demand attractions optimize investability.

For coastal charm at an affordable price point, target Beaufort, SC or Largo, FL. Beaufort blends antebellum architecture and Lowcountry cuisine with 60%+ occupancy. Largo’s botanical gardens and fishing villages keep winter visitors in 61% of available rentals. Both deliver steady revenue growth and reasonably priced properties to maximize your capital.

Prefer the flexibility of a mountainescape? The Blue Ridge Mountains town of Helen, GA mixes Bavarian architecture with rugged trails. Oktoberfest swells demand during shoulder seasons. A $195 average daily rate helps offset the $370K average home price.

Appeal tonature lovers in Sneads Ferry, NC near unspoiled beaches or Ashford, WA by Mount Rainier. Oceanfront properties fetch $290 daily despite higher purchase costs. Ashford’s parks boost 66% occupancy for only $160 average daily rate. Leverage remote access technology to manage these tranquil retreats.

Target families with investments in Wisconsin Dells’ Noah’s Ark waterpark or LEGOLAND powered Winter Haven. Both deliver 55%+ occupancy. Wisconsinites pay a premium for lakefront views. Central Floridians favor affordability with average prices below $265K.

This cross-section of data highlights promising areas to grow your vacation rental portfolio. Diversify across regions and amenities to mitigate risks from market fluctuations. Let me know if you would like area-specific analyses to pinpoint the right investment strategy for you. (source)

Should You Buy Down Your Investment Property Mortgage Rate?

Mortgage rate buydowns surged in popularity last year as rates peaked near 7%, but the math indicates minimal savings. Purchase borrowers paid an average 6.61% with points versus 6.69% without. Just an 8 basis point difference for thousands upfront.

As a real estate investor, you crunch numbers to maximize returns. Consider if points pencil out before overpaying at closing.

On a $400K loan, one point runs $4K. Typical savings run 0.125-0.25 percentage points. That nets maybe $80 less per month on a 30-year fixed mortgage. Breakeven stretches nearly two years.

Builders fueled the trend by subsidizing points as an affordability play. A lower year one rate entices strained buyers. But rates jump in year four, diminishing long-term savings. This helps move inventory, not optimize your investment.

A better strategy is shopping multiple lenders for the best no-point rate. As 2023’s dramatic climb slows, average rates retreat toward 6%. Paying points gains little advantage as the spread narrows.

Consider timing and taxes too. On an investment property, points deduct as a business expense in the year paid. That benefit disappears if you sell before recouping the upfront cost.

Run the numbers on a case-by-case basis. Suppose points lower the rate significantly below market averages. In that unlikely scenario, the monthly savings may justify the cost. But generally, points fail a risk/reward analysis right now.

Rather than overpaying for a marginal rate discount, negotiate concessions or credits from the seller to boost your bottom line. Asinventory expands in 2024, you gain leverage to drive a hard bargain. Sit back as multiple offers and bidding wars wane. (source)

San Francisco Real Estate Wakes Up in 2024

San Francisco springs to life as 2023’s sluggishness fades. Pending sales jumped 30% year-over-year this January. Open house traffic swells. New listings finally materialize.

Prime factors driving renewed buyer enthusiasm? Cooling rates, rebounding stocks, and recovering tech sectors boost confidence. After relentless economic gloom, optimism emerges.

This uptick seems more sustainable than initial COVID-era frenzies. Supply-demand imbalances fueled 2020’s bidding wars. Today’s buyers proceed more cautiously but actively.

The spring window looks promising for sellers before typical summer and election slumps slow activity. Strike preemptively. Pressure builds to list before demand wanes.

Still target turnkey properties in good repair. Most buyers lack appetite for major renovation projects with rates still historically high. Condos face ongoing struggles too, especially downtown. Pricing remains up to 6% below 2022’s median sale price.

So run the numbers accordingly. If investing in a fixer-upper or condo conversion, build in budget buffers. And remember local nuances. Some neighborhoods rebound faster amid citywide trends.

Miller Pacific, for example, feeds off biotech. Home values could jump 10% there if sector stocks stay hot. Russian Hill appeals more to foreign buyers. Its activity relies on the dollar’s strength.

While it’s still early, indicators align for a solid 2024. An SF agent dubbed it “the perfect storm.” But nothing’s guaranteed.

Remain nimble and skeptical amid fluid variables. Whether buying or selling, leverage analytics to pinpoint ideal timing. Let data guide your strategy, not emotions or hype. The rebound takes shape, but vigilance wins the day. (source)

🔥 Deal of the Day! 🔥

Address: 2009 Victoria Hl, Rochester, MI 48306

Far from cashflow but amazing potential. This magnificent Medieval castle, sprawling across 6+ acres and secured by a wrought iron fence with two gated towers, stands as a testament to unparalleled craftsmanship and dedication, featuring a 60-ton steel frame constructed over six years by global artisans. Towering at 60 feet, akin to a structure surpassing four stories, it boasts a moat, waterfall, drawbridge, portcullis, and 26 opulent rooms, complemented by an elevator, five fireplaces, secret chambers, hidden passageways, a wine cellar, and a Tudor-style pub.

Airdna data:

Estimated monthly payment: $15,716/month (if financed)

Estimated monthly revenue: $8,058/month

Cashflow excludes additional operating expenses. Always confirm local regulations, HOAs and permits before purchasing a property.

Stay tuned for tomorrow's digest of dough-generating insights! 💰 What topics do you want covered? Reply and let me know! ✍️