Last updated on June 21st, 2023
airbnb property investment Gulf Shores
Looking to invest in one of Alabama’s fascinating beach areas? Gulf Shores could just be the place that you’re looking for! Gulf Shores is known for its state parks with various ecosystems and its thriving business centers. Vacasa confirms that Gulf Shores is considered one of the hot spots for vacation rental properties and condo investments.
It’s highly recommended to learn about buying a property for Airbnb in order to make sure that it’s profitable. To begin with, it’s certainly important to consider the major costs and revenue before deciding to purchase a property in Gulf Shores. Another excellent option is to do rental arbitrage in Gulf Shores City as it’s fairly popular and does not require you to purchase a property.
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“Good news for Southerners looking to buy a beach home! Gulf Shores, Alabama, has been named the top destination to buy a beach home in the United States, according to a new report released by Vacasa.”
– Southern Living on Gulf Shores Property Investments
Aside from looking at a property’s fascinating architectural design, proximity to major tourist areas, and accessibility to the best go-to places, the primary step is to determine profitability. In this article, we’ll discuss the metrics in order to gauge the best property investment.
This includes the best website recommendations for property investment in Gulf Shores, property gross rental yield, cash-on-cash return, and annual revenue, along with some of the most ideal and profitable properties according to their location. Stoked to learn more? Continue reading!
Top reasons for buying an Airbnb Property in Gulf Shores
Located in the Gulf of Mexico, Gulf Shores offers 51km of pristine beaches with a natural beauty that can’t be denied. It’s the perfect beach destination that will give you an unforgettable experience. However, there’s more to learn as to why we recommend purchasing a property in this city. Here are some of the major reasons why you should consider buying a property for Airbnb in Gulf Shores:
1. You will like the real estate market here
There’s no doubt that beach houses are really popular among vacationers and that’s why investing in one can turn out into a profitable investment. As a top tourist destination, Gulf Shores’ real estate market is interesting as there’s a wide variety when it comes to housing options. The median property value in this city is $471k and the average sold price is $439K, trending up 19.5% year-over-year. In addition to this, the average effective property tax rate in Gulf Shores is around 0.36%.
2. Gulf Shores is a touristy city
The sugar-white sandy beaches and vibrant atmosphere makes locals and visitors alike fall in love with Gulf Shores over and over again! According to the City of Gulf Shores Portal, around 8M visitors arrive here to enjoy the exciting leisure activities the city offers!
3. Enjoy the beach in a safe city
Safety is always something that concerns investors when looking for a place to invest. While it’s always important to be aware of your surroundings, Gulf Shores is considered a safe city as its crime rate is lower than the national average. In fact, here it’s better to be more aware of hurricanes than anything else.
Best Neighborhoods for Airbnb in Gulf Shores
Let’s take a closer look at the important Airbnb key metrics to discover which is the most profitable neighborhood in Gulf Shores. Filtered for a 1-bedroom apartment, here is a brief overview of some of the most recommended and profitable neighborhoods:
airbnb property investment Gulf Shores
1. West Beach Blvd
- Annual Revenue: $58,684
- Occupancy Rate: 77%
- Average Daily Rate: $181
2. East Beach
- Annual Revenue: $49,913
- Occupancy Rate: 67%
- Average Daily Rate: $222
Is Property Investment Profitable in Gulf Shores, AL?
Using an Airbnb income calculator, it was discovered that a 2-bedroom apartment in Gulf Shores can generate an annual revenue of $80,486 with a steady occupancy rate of 72% and a nightly rate of $258.
airbnb property investment Gulf Shores
Beachfront Homes For Sale in Golf Shores
Finding the best properties that have the potential to produce high yields and capital growth are certainly some of the preferences of major investors. It’s always best to ask for assistance from real estate agents to access exclusive and unique properties during the development stage.
At the same time, it’s even better when a property investor like you conducts research about predicted growths and market forecasts. Here are some of the profitable properties in Gulf Shores along with the calculated gross rental yield, cash-on-cash return, and annual revenue:
4688 Walker Ave Unit Ca, Orange Beach, AL 36561
1. Studio-type Property for Sale Gulf Shores
- 0.6 miles to Orange Beach Elementary School
- Asking Price: $129,000
| GROSS RENTAL YIELD | 22.53% |
| ANNUAL REVENUE | $29,069 |
| CASH ON CASH RETURN | 41.83% |
491 Elberta Loop, Lillian, AL 36549
2. 1-Bedroom Type Property for Sale Gulf Shores
- 7.6 miles to Elberta Elementary School
- Asking Price: $74,400
| GROSS RENTAL YIELD | 36.41% |
| ANNUAL REVENUE | $27,089 |
| CASH ON CASH RETURN | 83.46% |
9547 Redfish Dr, Elberta, AL 36530
3. 2-Bedroom Type Property for Sale Gulf Shores
- 3.5 miles to Elberta Elementary School
- Asking Price: $139,000
| GROSS RENTAL YIELD | 29.86% |
| ANNUAL REVENUE | $41,503 |
| CASH ON CASH RETURN | 63.81% |
16707 Lagoon Cir, Gulf Shores, AL 36542
4- 3-Bedroom Type Property for Sale Gulf Shores
- 3.7 miles to Grace Christian Academy
- Asking Price: $199,900
| GROSS RENTAL YIELD | 25.35% |
| ANNUAL REVENUE | $50,682 |
| CASH ON CASH RETURN | 50.29% |
1318 Ridgewood Dr, Lillian, AL 36549
5. 4-Bedroom Type Property for Sale Gulf Shore
- 7.5 miles to Elberta Elementary School
- Asking Price: $145,000
| GROSS RENTAL YIELD | 37.60% |
| ANNUAL REVENUE | $54,520 |
| CASH ON CASH RETURN | 87.03% |
Conclusion
Based on research, Gulf Shores is a great place to live and invest in thanks to its attractive housing market and attractions! But before taking the next huge step and spending money, it’s highly recommended to discover your preferred property type’s profitability. To make sure that a property can generate a nice cash flow, the right neighborhood should be targeted and potential revenue calculated using an Airbnb calculator..
