Join me (Krista aka The Boss Lady Investor) and my business partner from Salty Dog Vacations, Kym Nguyen, as we explore the ins and out of investing in a vacation rental property. We will be launching a new Podcast called, "The Four Seasons of Vacation Rental Investing" and this is Episode 1 of that podcast. In each episode, we break down the:
Who? Who is doing the investing?
Why? Why this house/condo? Why this location?
When? When was it purchased and how do the markets/interest rates affect that? When did we rent it? When will it be sold?
How? How did was it chosen as a vacation rental? How was it paid for? How much money is it making and will it make?
What? What is the outcome?
Here are the numbers from this episode:
Bohemian Blowfish purchase price: $364,000.00
Down payment: $36,400.00
Furniture and decor cost: $20,000.00
Annual revenue year 1: $42,000.00
Monthly expenses: $2950.00
Cash Flow: $500/month $6,000/year
Invested with 4 women, each contributing about $14,000.00
Returns after 10 years:
Cash flow ($6,000 x 10 years) $60,000.00
Total mortgage balance left after ten years: $259,000.00
Anticipated value of home in ten years @ 3% growth: $489,000.00
Net Return: $233,000 profit divide by 4
Net Return each: $58,000 or 400+% or 40+% annually
Cash flow ($6,000 x 20 years) $120,000.00
Total mortgage balance left after twenty years: $99,000.00
Anticipated value of home in twenty years: $657,000.00
Net return: $621,000.00 or $155,000 each from a $14,000 initial investment.
Thanks for listening!
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Krista Goodrich aka The Boss Lady Investor @ https://www.facebook.com/krista.d.goodrich
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Feb 7 202345 m
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