There are plenty of reasons to think about investing in a short-term rental property out of state.
You may have just gone on a vacation and decided the people who own the place you are renting were making a killing.
A much better reason is for the economics of it. If you are in an area where housing is in high demand and prices are in high demand, it will be hard to make money there.
From a purely financial perspective, you will want to choose a market with strong rental demand, low demand for property, and good prospects for property price.
Here are the main expense categories: – Mortgage – Property Taxes – Utilities – Insurance – Cleaning – Maintenance
The revenue for each vacation rental is different, even if it is a condo in a community with many other short-term condos.
Short term revenue boils down to this equation: Revenue = ADR (Average Daily Rate) X Occupancy