Short Term Rental Riches 13. What is the Best Real Estate Market?
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Feb 11, 2020 Explore the unique characteristics of different real estate markets, from growth rates to investment returns. Learn how to efficiently identify promising markets without exhaustive research. Discover the importance of fundamentals like the rent-to-value ratio and demographic trends, including the impact of the Sun Belt and baby boomers. Get insights on leveraging turnkey providers to streamline property acquisition for short-term rentals.
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Key Fundaments of Good Markets
- Look for markets with strong employment, increasing population, and landlord-friendly laws.
- Favor areas with low cost of living to attract residents and affordable property prices.
Use Rent-to-Value Ratio
- Use the rent-to-value ratio (rent divided by purchase price) to evaluate investment returns.
- Aim for markets with at least 1% rent-to-value ratio, especially good for short-term rental conversions.
Leverage Turnkey Providers
- Search for turnkey providers who have already vetted profitable markets and rehabbed properties.
- Pick three markets from these providers to efficiently narrow down your real estate options.