Louisville is a popular, affordable vacation destination. However, it’s understandable that Kentucky residents often prefer to take trips a little further from home. The state of Kentucky isn’t on the coast, but that doesn’t mean homeowners can’t dream of owning their own beachfront property.
Plenty of people all over the country invest in second homes and rental properties right on the beach. Kentucky real estate investors looking to add to their real estate portfolio should check these top coastal locations.
Top 5 Cities for Kentucky Real Estate Investors
Below are five cities worth of your consideration. Take note of the strongest reason for each.
1. Virginia Beach, VA
Reason: Kentucky investors that are looking for something close to home.
Virginia Beach is one of the closest beaches to Kentucky at around 600 miles away from the center of the state. The 9-10 hour road trip makes it feasible to drive instead of having to fly anytime you want to take a vacation at your second home. It’s also one of the largest cities in Virginia and a popular vacation destination for people living in the D.C. area.
2. San Diego, CA
Reason: Kentucky investors that want a large selection and amazing weather all year.
If you are looking for waterfront scenery, San Diego is a great option. The area has miles of beaches as well as many harbor and bay front properties overlooking the water. With sunny, mild weather year round it’s the perfect option for investors that want a place to vacation during the winter with steady rental income for the rest of the year. The San Diego real estate market has been on the rise over the last few years and is now back to pre-recession prices. This is a good signal to investors that the area is generating a great deal of interest.
Another thing to keep in mind is that San Diego has a great tourism industry, with major events like Comic Con that bring in top dollar for rentals.
3. Atlantic City, NJ
Reason: Kentucky investors that are looking for a bargain.
True to the city itself, buying a beachfront property in Atlantic City is a bit of a gamble – but it could really pay off. The city has had a few rocky years since the recession with casinos closing and a huge number of foreclosures. Those same foreclosures have driven the prices down significantly.
Realtor.com recently ranked Atlantic City as the third cheapest beach town in America and noted that the median price is just $118,000. Still, there’s no denying that Atlantic City has a gorgeous beach and if the economy stabilizes it could add significant equity for people who bought in when the time was right.
4. Palm Coast, FL
Reason: Kentucky investors that are looking to retire soon.
Palm Coast is famous for being one of the largest planned communities in the country. Many of the 75,000 residents are retirees that want to take advantage of the warm weather, newly constructed homes and affordable cost of living. It’s hands down a paradise for both golfers and boaters.
The City of Palm Coast is on the Atlantic with 70 miles of canals that provide easy access to the water. The location also makes it great for day trips to St. Augustine and Daytona Beach, FL.
5. South Padre Island, TX
Reason: Kentucky investors that want a winter and spring break spot.
South Padre Island, TX is a snowbird and spring breaker haven because of the beautiful beaches and affordable prices. Recently Family Vacation Critic named South Padre one of the top 10 vacation rental destinations for families because of its low-key, relaxed atmosphere.
They also noted that there are few resorts and hotel chains so rental homes are the main option for vacationers. This makes it much easier to generate rental income. It’s also an easy drive to Mexico, which attracts vacationers that are looking for a little international adventure.
One thing that Kentucky real estate investors may not consider when selecting a vacation home is the cost of insurance. Along the Gulf Coast and Atlantic home insurance rates have increased due to the potential risk of hurricanes. If this is a concern then the higher prices on the west coast may be worth the extra cost.