Updated over 6 years ago on . Most recent reply
Big Bear Lake Airbnb Breakeven Numbers
Hi Everyone- relatively new Bigger Pockets member here. I am considering purchasing in Big Bear Lake to use as a vacation property 3-4x per year (I live in LA) and to Air BNB the rest of the time. I am currently looking at a few deals and am trying to figure out what my breakeven revenue would need to be, but, I am generally guessing on a lot of the numbers and was hoping there may be someone on here with experience in Big Bear who can take a look at/comment on my numbers. I have searched other topics on Big Bear and haven't found anything yet.
Assumptions: $325-350k purchase price, 10% down. No third party property management fees included in current analysis. Assumes comes fully furnished, if not then would add another 10k or so into first year.
- Mortgage: 2k/month; $24k per year, includes insurance, principal/interest and property taxes.
- Electricity: $100/month; $1200 per year
- Gas: $200/month; 2k/year
- Internet: $100/month; 1200/year
- Water: $100/month; 1200/year
- Snow removal: $500/year
- Repairs: $200/month; 2000/year
- Supplies: $2k/year
- Cleaning: $8-10k/year
Total annual expense: $43k
+ local transient tax of 11%, likely around $5/year (on 45k/year revenue)
Based on my numbers it looks like the breakeven would be around 48-50k in revenue when factor in the 11% transient tax, and then would go up 20-30% if needed third party property management. Anything I am missing or that seems way off?