First property for air bnb

[Emily Lange]

First property purchase!! (essentially turn key, pre foreclosure) 3bed/2 bad/ 1350 sq ft

Purchase price $170,000

Appraisal at $205,000

Annual Expenses: $13,000/year (utl 3120, maint 1200, ins 2400,advert 1000, supply 100, lawn 1000, 6% tax 4180)

Annual Mortgage: $9,056

Expected Annual income @ $200/night, 60% vacancy: $43,200

Annual Cash Flow: $20,937

Cap rate: 17%

We assumed high end of expenses list and low end of nightly rent, used vacancy from searching our property type and area on air bnb.