Investing in a beach house? Here’s where to buy (and maximize profits)

Aly J. Yale
The Mortgage Reports contributor

Best beach house buys

Considering a beach house investment or a summer home to occasionally rent out? A new report reveals the best places to buy a beachfront property in 2019.

Verify your new rate (Aug 20th, 2019)

Way up in Washington

According to the new Beach Town Report from vacation rental site Vacasa, Ocean Shores, Washington is the nation’s best place to buy a beach house.

Homes in the city cost average just under $240,000 — just slightly more than the current national average. They also boast a 7.6 percent cap rate (the ratio of income vs. cost) and a median annual rental revenue of over $32,000.

Investing in vacation rentals? Here’s where you’ll get the most bang for your buck

“There are two primary reasons to invest in a beach house: for personal use or for investment purposes,” Vacasa reported. “If you are more focused on ROI, choosing the market with the best cap rate is more likely to garner the returns you’re seeking. If you want to use the home for family vacations, take a look at markets within a two-hour drive from home.”

No. 2 for best beach house spot was all the way across the country in Myrtle Beach, South Carolina. The popular vacation destination offers a 7.4 percent cap rate, average revenues of $32K per year and a median home price of just under $250,000.

Getting a mortgage on a second home or vacation property

Sunny Southern cities

The remaining top places to buy a beach house hail largely from the South, with four Florida cities making the list.

Panama City Beach/Santa Rosa ranked at No. 3, while Key West, Marathon-to-Long-Key and Cocoa Beach took spots eight through 10.

Texas’ Galveston Island/Port Bolivar and Alabama’s Gulf Shore also made the list. The only non-Southern cities to make the list (other than Ocean Shores) was Kauai, Hawaii, and Ocean City, Maryland.

Get today’s mortgage rates

Are you considering buying a beach house for an investment or personal use? Then shop around and see what mortgage rates you qualify for today.

Verify your new rate (Aug 20th, 2019)