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Fundhomes looks at the average return on short term rentals in that market.
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The flow of tourists and visitors to the market is also crucial for vacation listings.
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Research the rate of population growth in the area to determine net inflow or outflow in order to predict appreciation.
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Last but not least, a point that many people overlook when buying investment properties on their own: whether local policies and regulations allow you to do short term rentals, if not, the rate of return calculated by the investor will not be achieved.