Need help making decision on purchase beach home STR

[Shawn Hunt]

Please help with inputs. New investor have one STR doing great. Have opportunity to purchase townhome beach house 2 bed/2.5 bath several thousand dollars under asking price. Was told should rent 50k per year I figured $3800 to be conservative. COC is not good along with cash flow but everything else is great bc of location near the beach. Below is info.

Return (IRR): 15.13% per year Total Profit when Sold: $364,560.29 Cash on Cash Return: 325.79% Capitalization Rate: 7.09% Total Rental Income: $496,615.25 Total Mortgage Payments: $293,370.44 Total Expenses: $200,050.38 Total Net Operating Income: $296,564.87 First Year Income and Expense Monthly Annual Income: $3,800.00 $45,600.00 Mortgage Pay: $2,444.75 $29,337.04 Vacancy (5%): $190.00 $2,280.00 Property Tax: $166.67 $2,000.00 Total Insurance: $516.67 $6,200.00 HOA Fee: $333.33 $4,000.00 Maintenance Cost: $166.67 $2,000.00 Other Cost: $300.00 $3,600.00 Cash Flow: $-318.09 $-3,817.04 Net Operating Income (NOI): $2,126.67 $25,520.00

First Year Expense Breakdown

59%5%4%13%8%4%7%MortgageVacancyProperty TaxTotal InsuranceHOA FeeMaintenance CostOther Cost

Breakdown Over Time

Year	Annual Income	Mortgage	Expenses	Cash Flow	Cash on Cash Return	Equity Accumulated	If Sold at Year End
Cash to Receive	Return (IRR)
Begin				-$111,900
1.	$43,320	$29,337	$17,800	$-3,817	-3.41%	$138,478	$107,950	-6.94%
2.	$44,620	$29,337	$18,254	$-2,971	-2.66%	$171,012	$138,653	8.42%
3.	$45,958	$29,337	$18,721	$-2,100	-1.88%	$205,746	$171,445	12.92%
4.	$47,337	$29,337	$19,201	$-1,201	-1.07%	$242,834	$206,474	14.63%
5.	$48,757	$29,337	$19,694	$-274	-0.25%	$282,438	$243,897	15.31%
6.	$50,220	$29,337	$20,202	$681	0.61%	$324,735	$283,882	15.54%
7.	$51,726	$29,337	$20,724	$1,665	1.49%	$369,915	$326,610	15.56%
8.	$53,278	$29,337	$21,261	$2,680	2.40%	$418,178	$372,275	15.46%
9.	$54,876	$29,337	$21,813	$3,727	3.33%	$469,743	$421,086	15.31%
10.	$56,523	$29,337	$22,381	$478,071	4.29%	$524,842	$473,266	15.13%
Total	$496,615	$293,370	$200,050	$364,560	325.79%

59%5%4%13%8%4%7%MortgageVacancyProperty TaxTotal InsuranceHOA FeeMaintenance CostOther Cost

Breakdown Over Time