You may not have always had the extra cash to invest in a vacation home, but dreaming about it is free. Whether it’s a log cabin in the Smokies or a beach condo in Florida, second homes are often seen as a personal oasis – somewhere you can get away from the pressures of daily life for a while.
For anyone who can afford a second home, however, they can be more than that: a report by gobankingrates.com indicates that some cities are particularly valuable investments when it comes to vacation rentals, due to their destination popularity, rental demand, revenue growth, and affordability of real estate. Check out some of the best cities and states in the south to start house hunting for a vacation home.
Gulf Shores, Alabama
The first city to make the list is in the heart of the south. Gulf Shores is known for its snowy white sand and clear Gulf waters, as well as for being the most lively beach town in the state. Loyal visitors come back year after year (and sometimes multiple times a year), which makes it a great place to invest your money.
Annual rental income averages around $16,700 in Gulf Shores, though buying a house in the area will set you back by an average of $345,135. If you don’t plan on living in this home, and truly using it for a vacation home, you should consider renting it the months you are gone.