Let me know what you think

[Matthew Grebeta]

Alright guys let me know what you think.

This is a property in a flood zone (AE)

1st question: that will make or break it. Can you rent out an apartment downstairs if it is legally within the BFE.

This is a 3/2 upstairs and a 1/1 downstairs with living space no full kitchen.

Mortgage would be for 320k 5.04 IR

My principal and interest = 1,777

No PMI

Property taxes = 248

Home insurance = 110?

Wind = 100?

Flood = 100?

No HOA or CDDs

Total monthly = 2,335

If Short Term which I have confirmed as legal in this neighborhood then add utilities say an additional 400 = 2,735

1)

Now Step one would be to house hack for the first year or two.

After comparing similar 1 bedrooms on AirBNB VRBO and Booking I should be able to bring in about 110 +or- per night ($3,300 pm) . Averaging 1.5 turn overs per week with a $50 cleaning fee adds $300 per month brings total income to 3,600 per month revenue. Now expecting over a years time only 75% total bookings that is a total of $35,100 per year or $2,925 per month on average. Now after setting $200 aside each month for expenses (in FL AirBNB automatically adds my taxes so I don’t have to set aside for that) brings me to an average monthly profit of 2,725.

So in scenario 1 as a house hack according to the numbers I could live in this $360,000 house for approximately $10 and that’s including utilities. Seems to good to be true.

That is why I’m posting this. Please let me know if I am overlooking something. Under estimating or over estimating.

If all goes well I will be going under contract tomorrow.

2.

After a year or two of this the plan is to move into another house hack and turn this into a full time vacation rental. In that scenario if the lower floor could be legal (see first question) then I’d be able to have a 4 bedroom 3 bathroom two story home with two living spaces (seems pretty sweet) within 1 mile I found two comps. They rent out for a minimum of a week at a time and rent for 1800 plus $200 cleaning fees so $2000 a week if I manage myself. I spoke with an owner and he said he stays consistently book except for 3-4 months where he is only booked for 1-2 weeks. At $8,000 dollars a month if only fully booked for 9 full months out of the year that equals $72,000 per year averaging to $6,000 per month. Even if it’s less say $5,000 per month and set aside more say $500 being that fill time rental means more abuse that’s still $4,500 per month. Take away the expenses of 2,725 and that leaves a cash flow of $1,775 per month.

Again this seems awesome. To good to be true? What am I missing? From my studies this seems accurate which is why I’m wanting to move forward to sign a contract tomorrow but what are y’all s thoughts. You experts out there.

Ive gotta be missing something!

Thanks guys🙂