STR Deal Analysis (AirBNB VRBO) in Tampa Florida (Brandon area)

[Amelia Casalenuovo]

Hi!

Looking to see other's input on this deal in brandon, FL. The property is in a great location, just 20 min from downtown tampa and just over 1 hr from disney /east orlando. This will be our first investment property! Planning to turn it into a short term rental (air BNB, VRBO) with a backup strategy of short term rental to travel nurses, etc.

Deal details:

Location: Brandon, FL

Price: 365K purchase price, Rehab/Furnish costs: 64 K (putting 20% down, paying our own closing costs). Interest rate 7.5%

Property details: 4 Bed, 2 Bath, fully enclosed pool, 2195 sq ft living area (planning to have at least 14 guests)

Anticipated revenue: 5k/month (this is conservative end)

Total Expenses/month: 3.9k (mortgage + taxes + insurance = 2.8k/month)

Cash on Cash return: 9%

The issue we found on our original numbers vs what is coming back now from the mortgage lender is that the insurance is MUCH higher than anticipated (77/month flood and approx 360/month property). Going to spend the day today calling around seeing if I can get a better rate but wanted to get the forum's perspective because there is a pretty good demand for larger groups/short term renals in this area. The property is in pretty good shape (just needs some TLC plus a full new HVAC system) and that price is well below most other properties in the area and has been sitting on the market for a few months so we were able to negotiate a lower price. I got multiple estimates during the inspection so I'm pretty confident in the rehab costs. Our full inspection contingency period is up on monday, so any comments/thoughts you're willing to share would be much appreciated!