Vacation Rental Analysis Help

[Account Closed]

Hi everybody!

My wife and I are looking to purchase a vacation home as rental property. I have seen many of you post success you have had with these types of rentals, however, I am having trouble finding property that will cash flow.

My numbers look like this:

• Purchase Price $175k

• Closing Cost (est) $5k

• Repairs $2k

• Down Payment $35

• Monthly Income $2000

• Maintenance $100/mth

• Capex $100/mth

• Electricity $200/mth

• Water/Sewer $55/mth

• HOA $250/mth

• Property Management $400/mth (20%)

• Insurance $62/mth

• Taxes $146/mth

• Debt Service $752/mth

• Internet/Phone/Cable $240/mth

• Total Expenses (rough est) $2300

This is one example of a property I have been analyzing, I have been using the same methodology each time. For those of you who have had success with vacation rentals, how did you find your property? Am I missing something? Everything I have looked at so far works out cash flow negative.

Please help me to understand if I am analyzing properly. Would appreciate any help and stories on how you started out.

Thanks!