Which markets have the best cap rates?
Buying a winter vacation home can produce strong returns for investors but which markets have the best cap rates?
According to Vacasa, Vermont would certainly have to be considered as the state is home to three of the most profitable markets for winter vacation homes, including the top-ranked.
Killington tops the list with a cap rate of 8.31%, median annual gross rental income of $39,797 and a median cost of $211,172. This market has six popular downhill trails to cater for every level of skier. It also ranked second in Vacasa’s Top 25 Best Places to Buy report over the summer.
Completing the top 5 for winter vacation homes are: Big Sky, MT (6.10% cap rate), Breckenridge, CO (5.56%), Dillon, CO (4.92%), and Ludlow, VT (4.83%).
While being close to a ski resort is attractive for guests, some markets that are further afield are still among the best to buy including Rhododendron, Ore. and Leavenworth, Wash.
Most markets that rank highly have activities that can be enjoyed year-round with mountain resorts remaining popular as summer playgrounds.
The full report is available: https://www.vacasa.com/top-markets/2019-best-places-to-buy-winter-vacation-home
