Best Beach House Investments of 2023 🔥🏖️

Good Morning! Welcome back from the long weekend.

Looking for the perfect investment beach house 🏡? Or maybe you're curious where the Airbnb hosts are headed next 🚀. Ever wondered what the legendary Brady Bunch house is worth today 💲? We’ve got you covered!

• Discover the best places in the U.S. for beach house investments in 2023 according to Vacasa's report 📈

• Airbnb: Unshaken Titan or on the Brink of a Direct-Booking Revolution?

• Dive into the world of nostalgic sitcom real estate with the Brady Bunch house up for sale 📺

• NEW! DEAL OF THE DAY 💰🏠 Great vacation rental for investors!

Making Waves: The 2023 Top Spots for Beach House Investments 🌊

Alright, let's do a deep dive into the world of beach house investments. We all know that beachfront properties can provide a significant return on investment, especially when they're rented out short-term.

Now, let's take a look at some hot spots for beach house investments in 2023. According to a study by Vacasa, a vacation rental management platform, the top locales in the U.S. based on the highest cap rates (yearly rate of return on investment) include:

1. Lake Anna, Virginia: This is Virginia's second-largest lake with about 200 miles of shoreline and is easily accessible to Fredericksburg, Richmond, Charlottesville, Northern Virginia, and Washington, D.C. areas. The median rental revenue is $69,723, and the median listing price is $385,000, with a cap rate of 12.08%​¹ ​.

2. Hatteras Island, North Carolina: Made up of seven villages, this area draws more than 2.5 million annual visits. The median annual rental revenue is $58,556, the median home sale price is $412,500, and the cap rate is 9.51%​¹ ​.

3. Navarre Beach, Florida: Located just east of Pensacola, the median annual rental revenue in Navarre Beach is $50,207, while the median home sale price is $370,000, and the cap rate is 8.05%​¹ ​.

And the rest of the top 10 include Palm Coast, Florida; Surf City, North Carolina; Gulf Shores, Alabama; Destin, Florida; North Topsail Beach, North Carolina; Rockaway Beach, Oregon; and 30A, Florida​¹ ​.

Remember, when considering a beach house investment, it's important to analyze home sales and vacation rental performance data from the last 12 months. Consider factors such as property taxes, utilities, HOA fees, insurance, and property management fees to calculate the average cap rate. Also, check the local regulations before deciding to buy a beach house because different areas have different rules about renting out a property​.

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Airbnb vs. Direct Booking: A New Era in Short-Term Rentals?

In the world of short-term rentals, there's a seismic shift brewing. Property owners, once reliant on platforms like Airbnb, are now exploring direct-to-consumer models. This trend was highlighted by Edwin Dorsey, author of The Bear Cave, who suggested that hosts are increasingly looking to bypass Airbnb and book travelers directly.

Take, for instance, The Hideaway Haus, a company that owns 26 short-term rental properties. They offer their properties on Airbnb and Expedia's VRBO, but also allow guests to book directly through their website, cutting out the middleman. The proprietors, Tony and Sara Robinson, are influencers in the vacation-house space and advocate for building a direct-to-consumer business model.

But is this a real threat to Airbnb? Let's dive into the numbers. In Q1 2023, Airbnb generated $1.8 billion in revenue, had a gross margin of 76%, and earned $117 million in net income. These figures suggest that Airbnb's marketplace model is highly profitable. However, if hosts can offer cheaper prices by booking directly, Airbnb's revenue could take a hit.

Yet, it's not all doom and gloom for Airbnb. Data from Transparent Intelligence revealed that around 86% of Airbnb listings are owned by people with 20 or fewer properties, and about 80% of these hosts list exclusively on Airbnb. For these hosts, marketing their own properties and building a direct-booking website may not be feasible, making platforms like Airbnb essential.

Furthermore, Airbnb's bookings are still growing. In Q1, there were 121 million nights and experiences booked through Airbnb's platform, a 19% year-over-year increase. This growth suggests that despite the rise of direct-booking competition, Airbnb remains a popular choice for travelers.

While the direct-to-consumer model may be gaining traction among larger property owners, Airbnb's position in the market remains strong, especially among smaller hosts. The company also has substantial financial resources, with $10.6 billion in cash and equivalents, to tackle any challenges that may arise.

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Property Star: The Brady Bunch House, A Nostalgic Investment Opportunity 🌟

Let's dive into the heart of the Los Angeles suburbs where the legendary home that hosted the Brady family's antics has hit the market. This legendary residence, the backdrop to the beloved '70s sitcom family's daily life, is now up for grabs.

This sprawling 5,000 square foot Studio City gem, listed for a cool $5.5 million, is a throwback to the mid-century modern design that graced our television screens in the late 60s and 70s. With a whopping five bedrooms, five bathrooms, and a groovy attic, this place is a time capsule of '70s nostalgia.

Here's the kicker - the lucky buyer will not just be buying a piece of history, but a home that has been meticulously renovated and extended. HGTV, the current owner, has invested a hefty $1.9 million in renovations, adding an impressive 2,000 square feet to the original footprint, including a whole new second story. The bright orange Formica kitchen counters, the iconic staircase, and even the pink twin beds - all have been recreated with an eye for detail and authenticity.

Set on a generous 12,000 square foot lot with citrus trees dotting the yard, the property is bathed in natural light, thanks to soaring ceilings, large windows, and sliding glass doors. The cherry on top? All the curated furnishings and accessories you see come included in the sale.

Now, for all you real estate investors out there wondering about the potential ROI, here's a quick breakdown…

Airdna data suggests the property could generate a cool $347k/year. At today’s interest rates your monthly payment would be around $36k/month and that doesn’t include utilities or other operating expenses. That would make the property difficult to cash flow, but you’re unlikely to get a permit to rent it out anyway. Better to invest your $5.5M somewhere else.

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Deal of the Day! 💰🏠

Address: 20 Isleib Rd, Marlborough, CT 06447

Situated on a private 2.83 acre lot, this move-in ready, 3 bedroom log home is an ideal vacation rental owing to its recent upgrades, including a remodeled eat-in kitchen, large living room with a fieldstone fireplace, a covered deck to admire the natural surroundings, and ample parking space for vehicles and boats, promising a comfortable and memorable stay for guests seeking tranquility and convenience​.

Airdna data:

Estimated monthly payment: $2,200/month

Estimated monthly cashflow: $4,050/month

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

The opportunities are vast and varied! Stay tuned and get ready to make some money moves! 💪💸