Safeguard Financial has compiled the list of The Top 10 USA Vacation Rental Investment Markets based on top tourism destinations in the USA each year, an average property price and the occupancy rates through out the year.

1. Top 10 USA Vacation Rental
Investment Markets
by Safeguard Financial
www.IRA123.com

2. Top 10 USA Vacation Investment Markets
A commonly asked question we get from our customers is “Can I invest my Self
Directed IRA into a vacation property?”
The answer is simple: Yes you can. But you cannot vacation there. That would be a
prohibited transaction within your IRA plan.
Investing in vacation real estate is a dream for most real estate investors, but unless
you have upwards of an 80% occupancy rate and a fantastic property management
company who promotes and manages it well the investment return could be a lot
lower than regular income producing real estate with long term renters.
We have however compiled the list of The Top 10 USA Vacation Rental Investment
Markets based on top tourism destinations in the USA each year, an average property
price and the occupancy rates through out the year. Research and resources can be
found within Appendix A.
Number 10: New York City, New York
Average Listing Price: $1.2 million
Estimated Visitors/Year: 48.8 million
Average Daily Room Rate: $238 (2009)
Occupancy Rate: 81.5%
Attractions: Empire State Building,
Statue of Liberty, Central Park,
Museums.
New York is one of the most expensive real estate markets in the United States,
however there is still an opportunity to pick up studio or one bedroom units for under
$150,000 in good areas such as the Upper East Side.
With the amount of domestic and international tourism flooding into the city annually
and turn key management or online booking engines, there is a potential to keep the
property full for most of the year at the higher than average rates charged per room.
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3. Number 9: Washington, DC
Average Listing Price: $350,000
Estimated Visitors/Year: 16 million
Average Daily Room Rate: $199 (2009)
Occupancy Rate: 73%
Attractions: Smithsonian, National
Monuments and Memorials, The
Three Houses of Government.
Being the capital of the United States, Washington DC is seen as a historical mecca
within the the USA. With foreign and domestic tourism growing, it is a vibrantly
cultural city booming in the summer months.
Property prices are some of the highest in the country, yet smaller foreclosed units can
still be found, fixed and rented out as vacation properties in popular tourist areas.
Number 8: San Francisco, California
Average Listing Price: $732,000
Estimated Visitors/Year: 15.9 million
Average Daily Room Rate: $160 (2009)
Attractions: Golden Gate Bridge,
Alcatraz, Fisherman's Wharf, Union
Square, Museums.
With the large amount of conferences, business meetings, central business hubs and
world famous tourist attractions, San Francisco has always been one of the top
destinations for international travel. Property prices remain exceptionally high as a
million people live and work on this small piece of land on the San Francisco Bay.
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4. Average room prices and occupancy rates remain constantly high, but with the high
cost of the investment the return may not be as good as other markets.
Number 7: Los Angeles, California
Average Listing Price: $468,000
Estimated Visitors/Year: 25 million
Average Daily Room Rate: $133 (2008)
Occupancy Rate: 69%
Attractions: Hollywood, Universal
Studios, Rodeo Drive, Venice Beach.
From Hollywood star spotting to shopping on Rodeo drive Los Angeles remains the
romantic Twinkle Town vacation destination with 25 million visitors per year. As a
sprawling metropolis and a busy bustling city, Los Angeles is spread out across a large
area with little or no good public transportation system.
The best areas for an investment property would be Beverly Hills or Venice Beach
which would allow good access to the more popular tourist attractions. Hotel
accommodation can be found relatively cheap and occupancy rates are below national
average, so providing accommodation with a difference may be the key.
Number 6: Anaheim, California
Average Listing Price: $274,000
Estimated Visitors/Year: 42.7 million
Average Daily Room Rate: $110 (2009)
Occupancy Rate: 64%
Attractions: Disneyland
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5. Large numbers of family groups pass through Anaheim and the Orange County each
year, mostly for a visit to Disneyland, which is one of the most visited Disney
locations in the world.
Property prices in Anaheim remain pretty low, and it could be an opportunity to buy
bigger units to accommodate large family groups.
Number 5: Dallas, Texas
Average Listing Price: $229,000
Estimated Visitors/Year: 27 million
Average Daily Room Rate: $130 (2009)
Occupancy Rate: 68%
Attractions: Dallas Cowboys,
Museums, Amusement Parks.
With Texas being one of the strongest economies in the nation, Dallas hosts large
numbers of domestic travelers for conference and business meetings, as well as being
the gateway for international tourists.
Property prices are really low, and room rates remain pretty high as the economy
continues to grow.
Number 4: Las Vegas, Nevada
Average Listing Price: $295,000
Estimated Visitors/Year: 37.3 million
Average Daily Room Rate: $95 (2010)
Occupancy Rate: 80%
Attractions: Gambling, Las Vegas
Strip, Shows and Entertainment.
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6. Las Vegas remains one of the hardest hit property markets in the country. It is
estimated that properties would have lost a total of 66% in value by the end of 2012.
Although hotel rooms and flight packages are cheap and easy to find, there is also a
market for self catered family accommodation close to the strip.
With gambling and travel not slowing down during the recession, it is still one of the
most popular domestic destinations within the US.
Number 3: Miami, Florida
Average Listing Price: $378,000
Estimated Visitors/Year: 12.6 million
Average Daily Room Rate: $144 (2010)
Occupancy Rate: 80%
Attractions: Beaches, Museums,
Miami Zoo, Party Night Life.
Miami South Beach, or SoBe as it is known by the locals, is one of the most famous
beach destinations in the world for trendy and exclusive bars, clubs and restaurants.
Spring break and summer months are jam packed with travelers, and finding
accommodation can usually be a tiring affair. Property prices have decreased
dramatically during the recession and you can pick up a good investment in the South
Beach area for under $100,000.
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7. Number 2: Chicago, Illinois
Average Listing Price: $175,000
Estimated Visitors/Year: 31.9 million
Average Daily Room Rate: $113 (2010)
Occupancy Rate: 61%
Tourist Attractions: Millennium Park,
Buckingham Fountain, Sears Tower,
Shedd Aquarium.
For business or vacation travelers there is a lot to do and see in the Windy City,
attracting just under 32 million visitors per year. Property prices have taken a huge hit
during the recession, and investments can be found in popular tourist areas for
ridiculously low prices.
With a really good rail system, lots of outdoor activities in the summer and cold
winter months, this makes it a great place for investing in a nice little vacation
property for business or pleasure travelers.
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8. Number 1: Orlando, Florida
Average Listing Price: $114,000
Estimated Visitors/Year: 50 million
Average Daily Room Rate: $92 (2010)
Occupancy Rate: 63%
Attractions: Disney World, Sea
World, Universal Resort Orlando.
Disney World put Orlando on the global travelers map, but Sea World and other
amusement parks such as Universal Resort Orlando continue to pull over 50 million
visitors to the area each year. Orlando however has been one of the hardest hit areas in
the recession with properties losing over 50% in value over the last five years.
Tourism remains high, and there is strong competition with large hotel chains, but
larger units offering self catering for families may perform well in this area.
If you are interested in Vacation Property Investing, speak to an advisor at Safeguard
Financial to take advantage of these markets and invest into Real Estate with your
401k. Call 877-229-9763 or visit www.ira123.com.
Appendix:
A: Click here for the Research Document.
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