real estate In general, Americans have long had a way to generate wealth.

However, most Americans never go out of their primary home when it comes to investing in real estate. Owning a rental property in a vibrant market can generate both long-term capital gains and immediate cash flow. In many areas, rental income can far exceed the cost of a real estate mortgage. This basically means that you are paid to own the property because it is highly valued. However, to reach this investment nirvana, you need to choose properties in hot areas that generate consistent rental income. Here is a list of the five areas where it does exactly that.

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30A, Florida

The word “30A” is not well known in countries other than the southeast, but it is a vast rental property area with room for growth. “30A” refers to the extension of the highway between the popular resort town of Destin and Panama City, Florida, dotted with small communities of charm and gorgeous views right next to the sandy beaches of the Gulf of Mexico. increase. Surrounded by tourist-filled towns during peak season, small communities such as Santa Rosa, Rosemary Beach and Seaside have the charm of a small town, but gorgeous beaches, delicious seafood and friendly locals. Maintains the strengths of the industry, including the people of. With more and more visitors wanting a “real” travel experience, places like 30A are well-positioned to be a great investment.

Mammoth Lakes, California

Mammoth Lakes, California is a small resort town about 30 minutes south of the east exit of Yosemite National Park. Although known primarily for the best skiing in California, Mammoth Lakes is actually a year-round resort. Rental income is high during the very long ski season from November to July 4, but also during the summer months when outdoor types gather in town to enjoy fishing, cycling, hiking, boating and mountains. It will be the peak. cycling. The value of the property is rising rapidly, and short-term rental prices can exceed $ 450 per night in a simple one-bedroom during peak season.

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Poconos, Pennsylvania

When it comes to investing in vacation destinations, Poconos seems to have it all. Located in northeastern Pennsylvania, Poconos is a year-round attraction, from summer water sports and waterfalls to winter snowboarding and skiing. Poconos has a timeless appeal and has been a vacation hotspot for decades, but vacation rental prices are still easily within reach. Coupled with more than $ 40,000 in annual rental income from many Poconos villas, the risk / reward ratio for this type of investment is low.

Windham, NY

Northern New York has always been a hot vacation destination for urbanites fleeing New York City. But when it comes to investment potential, Hamptons and Hudson River Valley are their own popular victims, with asset values ​​that are hundreds of thousands of dollars and even millions of dollars more expensive than alternative options like Wyndham. I’m waiting. In addition to its popularity as a ski destination, Wyndham is also a sophisticated summer destination, where you can enjoy outdoor recreation along with the town’s art galleries, wine bars and excellent restaurants. With a median suggested retail price of less than $ 500,000, Wyndham continues to be an affordable option for anyone considering investing in a rental property.

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McGaheysville, Virginia

McGaheysville, Virginia is another year-round vacation destination with the charm of a small town. Visitors to this “under radar” vacation hotspot enjoy both winter and summer recreation. The biggest attraction is Shenandoah National Park, which is part of the Appalachian Trail. The median annual revenue for McGahaysville is a whopping $ 49,000. This means that almost all rental real estate investors are making a profit, and some are experiencing a real plunge. Destinations are lesser known on the western side of the Mississippi River, so there is still plenty of room for growth for potential investors.

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This article was originally GOBankingRates.com: Why buying real estate at these vacation destinations is a big investment