Real Estate can be a fantastic asset class.
Not only does it give you the potential to earn big gains as property values increase… but it also gives you the opportunity to earn ongoing income.
But given the environment today — high real estate prices, sky-high mortgage rates, a strong likelihood of recession, etc. — does it still make sense?
Today, I’ll show you that it does still make sense.
More specifically, I’ll show you how to invest in one of today’s hottest real-estate markets…
Without having to worry about an upcoming recession… and with as little as $100.
The Hottest Real-Estate Market
According to a recent report from The Washington Post, one of the hottest markets in real estate today is vacation rentals.
Last year, median home prices in vacation-rental markets rose by 20%. That’s almost double the increase for other types of homes.
This explosion in demand and value can be attributed to two factors:
- The Coronavirus Pandemic — As the pandemic lingered, more and more people fled big cities and towns in search of space and isolation.
- The Airbnb Phenomenon — Airbnb (ABNB) has made it easier for people to take vacations, and easier for vacation-home owners to monetize their properties.
These factors have caused returns for homeowners to explode. For example, according to 2021 nationwide rental data from listing platform Zillow and analytics service AirDNA, on average, vacation rentals generate up to 160% more revenue than traditional long-term rentals.
And a 2021 year-end report from Realtor.com noted that the average annual cash flow from vacation rentals was $56,000, an all-time high.
It’s Not as Easy as it Looks
The thing is, it’s not easy to get into the vacation-rental game.
In fact, fewer than six percent of all Americans own a vacation rental property.
Why such a low number? Simple: most people can’t afford it.
First, they’d need enough up-front capital to purchase the home. Then there’s the costs of insurance, taxes, and repairs. Prospective owners also need funds to pay a property manager, and to do marketing.
And beyond the cost, they might be concerned about the time and work commitment, which can be substantial.
But what if you could invest in fully-managed vacation rentals — without even worrying about a down payment?
Own (and Profit from) a Vacation Home for Just $100
That’s precisely what Arrived allows you to do.
Arrived allows you to browse through its online listings of residential properties, and claim a stake in them for as little as $100.
The site makes it easy to identify homes that are being purchased specifically for vacation rentals. (You can view current listings here.)
As you’ll see, you can easily filter down its inventory to “Vacation Rentals.”
For each property, there’s a high level of detail — for example, prices for similar homes in the area; estimated occupancy and rental rates; and expected financial returns.
Fail to Plan, Plan to Fail
To be clear, these investments still carry risk.
So you’ll want to research each opportunity carefully and get to know the local market.
In addition, you’ll want to come up with an asset allocation plan. In other words, decide how much of your overall portfolio to allocate to real estate in general, and then how much to allocate to vacation-rental properties.
Furthermore, you should aim to build a portfolio of these properties over time. Diversification will help reduce your risk — and hopefully increase your returns during good markets and bad.