I’m a Real Estate Agent: 5 Places I’d Buy a Vacation Home If I Had $500,000
Mike Wall, Realtor with EXP Realty and partner at EZ Sell Homebuyers, is a 23-year real estate veteran who has sold over 1,700 homes.
“When considering the best locations in the United States to buy a vacation home with a $500,000 budget, it’s essential to focus on areas that offer both a high quality of life and potential for real estate appreciation or strong rental income,” Wall told GOBankingRates. “Consider factors such as location desirability, potential rental income, property management costs, and the overall investment strategy — e.g., long-term appreciation versus short-term rental income.”
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Based on Wall’s extensive experience in the real estate market, here are his top recommendations.
Smoky Mountains, Tennessee
Wall said you can expect steady rental income from a vacation home in the Smoky Mountains area.
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“This region is one of the most visited national parks in the U.S., attracting millions of tourists yearly,” Wall said. “The high demand for short-term rentals, combined with the scenic beauty and plethora of outdoor activities, makes it a prime location for a vacation home. Properties here can generate significant rental income, especially cabins with views or unique amenities. The area’s popularity ensures a steady stream of potential renters, making it a solid investment.”
Pocono Mountains, Pennsylvania
Wall said that the Poconos is an “excellent” location for vacation homes due to its proximity to major metropolitan areas like New York City and Philadelphia.
“The Poconos offers year-round attractions, from skiing and snowboarding in the winter to water parks and hiking in the summer,” Wall said. “This region provides a good mix of affordability and rental demand, making it possible to find properties within the $500,000 budget that can offer a good return on investment through vacation rentals.”
Gulf Shores, Alabama
This up-and-coming beach location offers great investment opportunities.
“Known for its beautiful beaches and warm climate, Gulf Shores is a growing vacation destination,” Wall said. “The area’s appeal is its affordability compared to more well-known beach destinations in Florida, yet it offers similar white sandy beaches and a friendly community. Investing in a property here could yield high rental occupancy rates, especially during the summer months, and properties have the potential for appreciation as the area continues to grow in popularity.”
Lake Tahoe, California/Nevada
“While $500,000 is on the lower end for this market, there are still opportunities to find properties that can work as vacation rentals, particularly condos or small cabins,” Wall said.
Lake Tahoe appeals to renters throughout the seasons, making it a solid investment.
“Lake Tahoe is a year-round destination, offering skiing and snowboarding in the winter and hiking, boating and beach activities in the summer,” Wall said. “The diverse range of activities, along with its natural beauty, makes properties here highly sought after for vacation rentals.”
Outer Banks, North Carolina
“This unique string of barrier islands offers a blend of history, natural beauty and steady tourist traffic,” Wall said. “The Outer Banks is known for its lighthouses, wild horses and miles of beaches.”
Properties here can be a good investment due to the consistent demand for vacation rentals, particularly during summer. However, there are some extra considerations and expenses you need to account for when investing here.
“While hurricanes can be a risk, choosing the right insurance and property management can mitigate these concerns,” Wall said.
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This article originally appeared on GOBankingRates.com: I’m a Real Estate Agent: 5 Places I’d Buy a Vacation Home If I Had $500,000
