All Forum Posts by: Amy O'Brien

 This is great info! Thank you - I chose 3% because it is the lower end of the range suggested on the tool. The 50% rule showed it would cashflow, but not very much. I am really feeling like this may not be a very good deal. The rent would have to be raised, but I don't think it is realistic. I saw a similar one for rent in the area for 1098/month. 

Thank you!! I am a newbie, which I am sure is fairly obvious lol. Thank you for sharing with me how to do that! I very much appreciate it. 

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Hi everyone! 

Quick bit of info - this property does have a tenant that is section 8 - I am not opposed to S8, but their realtor and mine belivev we can increase rent from 1150 to 1400. My understanding is S8 typically pays top of market. So if they are at 1150, I don't see us being able to raise to 1400. We did not know this was S8 until after we made an offer. We are able to walk due to the inspection, and the more I think of it, I feel we should. We only have a couple hours to decide....I would so greatly appreciate any thoughts. 1st property! 

https://www.biggerpockets.com/...

I’m new to this site  - I replied but I’m not sure if it alerted you so I’m trying this  :)

Thank you for the reply! I am basing these numbers on the last 3 years of P&L - I have asked repeatedly for the reports from Airbnb and VRBO - The P&L showed 109K income for 2020 but if it were rented for 378 nights (it's a duplex so each side rented for a total of 378 nights) based on the average per night the property should have made over 150K. So I am just feeling hesitant to move forward without the real numbers. 

Based on my math though - would you say this is a good deal?

I am looking to buy the following property - 

Beach house that rents 180/days per year - duplex total nights rented 378 average rent per night $425

The P&L numbers do not match these numbers - the property has also been on and off the market for years which makes me nervous 

According to my math here are the numbers 

Cost 775K

Down Payment 156K

Average Income 100K

Average Expenses 25K

Mortgage P/I - 2650

NOI - 75K

Cash Flow - 43K

ROI 28%

Cap Rate 9.7%

Cash on Cash - 26%

Total ROI - 45%

Is this a good deal?? I am just concerned because we continue to ask for the reports and we are not getting them. 

@lamontchen I ran the calculator and it all turned out really positive. I will see if I can share those numbers some how. In my expenses I include utilties and property management, but not capex. However that is in my deal analysis. I am so nervouse to buy this property since it is vacation rental. Last year in COVID times it was it's best year in income. That didn't necessarily surprise me, but knowing there won't be full time tenants makes me a little nervous. 

Hi friends,

I am looking at a property that is a vacation rental - it has solid rental history and already has some bookings for next year. Here are the details - the NOI is 90K, the cashflow is 44K - to calculate that I did NOI - (mortgage payment + reserves) I put reserves at 1K. The cash on cash if I did this correctly is 29.89%

Here are the details 

Price - 700K

20% Down 

Interest rate 2.75%

Mortgage Payment - 3286 

Summer Rental Income Only - 109K

Expenses - 7800/annuall (taxes and insurance are in the mortgage payment - together those are 10K)

If I did the calculations correctly the cash on cash is 29.89% I feel like this is too good to be true. Help! 

I am also concerned about this only renting about 5 months out of the year. I have a lot of ideas on how to keep it booked throughout the year though.