Numbers nerd? Take a look at this. Would like opinions.

[Kim Durst]

Scenerio:

We own a lakefront property and turned it into a short term rental THIS summer. Would you keep it or sell? Keep in mind....June, July, August this year was at $275-$325 Next year, our rates are $340 in the hot season.

Purchase price 2017 $ 324k

Currently worth approx $450-530k

Currently owe $284k

We sunk about 80k into improvements

This year we generated $20,659 in STR (may be more if we book rentals this fall)

Pontoon rental made $5700

Expenses are approx $29k per year

We are projecting a higher income next year, our first year was spent getting our feet off the ground, etc. Our thoughts are this....sell or keep? The house is large, 4500 sq ft. a ton to take care of. We are considering taking the profits from a sale an buying 2 more smaller lakefront properties as STR. (actually we are in contract for one now)

Or....would you keep on the STR track to help recoup some of the cash you put in? We also think, lakefront property appreciates more than traditional properties and feel "safer" holding on to it for a few more years than we would with anything else.

Is there something we may be missing here? Would love you thoughts.

[Marcus Auerbach]

Originally posted by @Kim Durst:

@Colton Fairchild @Marcus Auerbach @Dennis Fernandez @Tim Herman I am wrong on our numbers. Completely Forgot to add figures from when we had our property manager! We are cash flowing 5k this year. We started late this year and started with low rates to get going. Next years projections are looking great so far. We are 50% booked for june, july and August at $340 per night. 

$5k don't move the needle that much; it seems to me you love the idea and the cash flow!? I am happy for you and I can understand you are excited over the $340 per night, but please look at the big picture! But STR is a lot of work too, how much do you pay yourself for the work? The rest is net income. The numbers tell you to sell as long as you are ahead and invest in something that makes more sense (by the numbers). Your excitement is a poor advisor, emotions and money don't go well together, in Vegas, at Wall Street and in Real Estate.