When it comes to investing in a vacation rental property, the cash return you can expect to receive depends on a variety of factors, such as the amount of money you've invested, the type of property, its location, and more. Generally speaking, cashback on cash should range from 8 to 12% or higher. The final answer should be expressed as a percentage. Many investors aim for more than 10% when looking for vacation rental properties, but this figure can vary. In the case of long-term rentals, for example, the usual return in cash is between 5 and 10%.
However, short-term rentals usually indicate a higher rental yield. Generally speaking, a good return on investment is greater than 15%. If you use the capitalization rate calculation, a good rate of return is around 10%.Currency exchange rate fluctuations can also have an impact on investment decisions made by people considering investing in real estate projects, such as buying or renting vacation homes anywhere, including in the vacation rental market.
