Should You Purchase a Cape Cod Investment Property?

Should You Purchase a Cape Cod Investment Property?

  • Robert B. Kinlin
  • 08/17/22

Home to the gorgeous Cape Cod National Seashore, picturesque vistas of lighthouses along the coastline, and a surprisingly dynamic cultural scene for a rural area, Cape Cod has consistently remained a popular place to buy property. If you’re interested in exploring the Cape Cod real estate market, here are some factors to consider.

The ins and outs of purchasing a Cape Cod investment property

Know your end goal

Are you looking for a place to retire or for a vacation home? The ideal property to enjoy your twilight years in will be different from that of a second home. On Cape Cod, many real estate investors are retirees. They purchase Cape Cod homes prior to retirement and rent them out to help offset the mortgage. The properties best suited to this lifestyle are ones where everything you need is on the main floor and is within walking distance of trails, shopping destinations, and any other forms of entertainment you’d want during your retirement.

The best property for vacation homes will likely be those close to the beach and will have room for the kids to play and for teenagers to have their space. By carefully considering how you want your property to function, you can focus your real estate search on listings that match your wants and needs.


To maximize investment potential, the property must have amenities. Think about the features vacationers look for, such as rentals with a view or ones boasting easy access to the beach. If you can promote a property with a private balcony or yard space, or walking distance to main attractions, you will have an easier time keeping your property rented. Vacationers tend to be younger and appreciate contemporary designs and features. Investing in new construction, like Cape Cod condos for sale, can address this need as these properties feature the latest design trends and state-of-the-art appliances. 

The neighborhoods

There are fifteen towns in the Cape Cod area, each with its own distinct atmosphere and attractions. While any area on Cape Cod is a solid investment because waterfront property is always in demand, there are some towns that are more marketable and easier to rent, such as the Village of Osterville in Barnstable. This seaside community is home to one of the most beautiful beaches in the Cape, Dowses Beach, which is an exclusive peninsula beach on the East Bay for residents.

Another example is Orleans, one of the state’s designated Cultural Districts, where you will find top local talent featured in local galleries. Other neighborhoods include Chatham with its stunning views and a lively Main Street and the other multiple villages within Barnstable, such as Hyannis Port, where John F. Kennedy had a secondary White House. Sandwich is the oldest town in Cape Cod, with original buildings from the 18th century. You can find Cape Cod homes for sale in all of these areas, each attracting visitors drawn to one of the many appealing attributes of Cape Cod. 

Calculate your potential ROI

Cape Cod’s peak traveling season runs from July 4th to Labor Day – only two months long. When looking at Cape Cod homes for sale, be sure to run the numbers and calculate your potential revenue and costs. Waterfront homes need annual maintenance, and you will need to have a service to clean the property between renters. If there are landscaped areas, you will need a service to maintain those as well. To find renters, the property must be promoted and advertised properly.

After you factor in all your potential costs and your potential revenue, do you have a profit margin? Are you comfortable with it? Some investors fall a little short of making a profit on their rentals, but they are okay with this because their end goal is to use it as a retirement home. Provided they break even or close to it, they are fine. It all depends on your goals and comfort levels.

Understand your renter

You found a property that fits your budget and meets all the needs of your end goal. Now, you will need to define the renter you want to target. Is it a large multi-bedroom property? Then you will likely be looking for families while budgeting for the property only being rented during the summer months when school is out, although you may find groups of friends to appeal to during the rest of the year.

If your property is one or two bedrooms, your renters will likely be couples. If you choose one of the Cape Cod condos for sale near Chatham, you’ll be marketing to professionals traveling to Boston. Understanding who your renter is will help you promote it successfully and budget for the rental season.

Work with an expert

The key to successful investing in Cape Cod real estate is finding the right property. Local real estate agents have intimate knowledge of the area and understand the different nuances of each town, village, and neighborhood. Additionally, be sure to choose a real estate agent who is experienced with investment properties as they will have a pulse on the current rental rates, the best marketing tactics, trustworthy service providers, and all the other details involved.

A trustworthy agent won’t pressure you. Instead, they will guide you on good investment practices in the area. They won’t rush you either because they are more interested in having happy clients than in making a one-time sale. At the end of the day, an experienced, local agent will be your best asset to invest successfully in one of the Cape Cod homes for sale.

Want to purchase a Cape Cod investment property?

Robert B. Kinlin would love to answer your questions about investing in Cape Cod real estate. He has decades of experience with investment property and luxury real estate and he enjoys helping clients build wealth by buying or selling vacation homes, retirement property, or investment real estate, contact Robert B. Kinlin today!

Work With Robert

Specializing in the sale of luxury and waterfront property throughout Cape Cod, Boston and Coastal Massachusetts, Robert has built a reputation based on performance and is consistently one of the top producing luxury brokers in Eastern Massachusetts.

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