Savvy investors have known for years that real estate is one of the best ways to make money. In fact, some say it is the best way. Typically, real estate investors focus on commercial property, apartment complexes, and even real estate investment trusts (REITs) as the major components of their real estate portfolios. Some property investors may not realize that another asset class, short-term rentals, can be a great investment as well.

Short-Term Rentals as a Real Estate Investment Class

It turns out that investing in short-term rental property can be an excellent way to make money and save on taxes as well. Vacation properties, Airbnb, and similar opportunities can be quite lucrative. Mare and more folks are getting involves in this investment trend.

Do You Have Enough Capital?

You will need some seed capital to get started. Typically, about 20% of the cost of a short-term rental as a downpayment is required. You may also need capital for repairs or renovations, depending on the property’s condition.

Locate Your Target Market

Once you assess your capital on hand, then it is time to locate the ideal market for candidates for purchase. Research several markets and determine where the most profitable short-term rentals are located. Consider whether you will be managing the properties yourself or outsourcing that job to an agent.

Commence Buying Properties

Now you are ready to look at properties. Drive through the area and get familiar with its look and feel. Then, it may be a great idea to work with an agent that knows the area like the back of their hand.

Partner with KMS Funding

Consider working with KMS Funding if you are convinced that short-term rentals need to be part of your investment portfolio but you need a boost in capital to get started. KMS Funding is expert in property financing and can help you achieve your goals.