All Forum Posts by: Bob Gillar

@Robert S. that's great information. Thank you so much!  And I may take you up on your offer and PM you at a later date.  Thanks. 

Prior to buying my first beach vacation (out of state) rental property, I wanted to use numbers and calculations to asssss my potential investment.  

I'm making an excel sheet with all the calculations found on this website (I will link at the bottom) such as ROI, Cash flow, etc.

I'm hoping someone can please help me with the data needed for TOTAL ROI. The article mentions taxes gained and lost - is this the place to factor in taxes paid on the income from the property (is that taxed at a rate of ordinary income?) - and is this where a deduction of mortgage rate interest is calculated or is that not necessarily a factor?

When factoring in the Equity Accrued; is this basically the equivalent of whatever portion was paid down from the principal of the loan?  Is theoretical appreciation of the propery used in this equation?   

As it's possible the article couldn't include every single item, are there any other items which a first time buyer should include in a TOTAL a calculation prior to the purchase?

Thank you! 

Link: https://www.biggerpockets.com/renewsblog/2010/06/3...

@Andrew Johnson great. Thank you.  The two properties which im considering are both with management companies so I trust this info should be easy to come across.  

I'm sure I will have more questions at a later date.  Thank you again for helping.  

maybe I shouldn't have directed the last question only to Mr Johnson. I am open to hearing from anyone able to explain T12 please.

Thank you 

this information by all who posted has been a great help.  Thank you all for your time. 

@Andrew Johnson what is t12 please?

I have wanted to purchase a beach home for quite a few years and I've gotten quite serious the past few months.  I've visited the areas where I'd like to purchase and am still searching though do have 2 current top contenders.  

While I can qualify for the mortgage needed for either home, the reality is that I need my costs offset by rental income. 

I have a large family and would like to use the home for a week or two as a way to gather the family and rent the remaining weeks. 

Are there any rule of thumb items (or I welcome more specific formulas/computations) that I should use in the process of screening and selecting a home?  I'm purchasing through an agent so I know they will have information from the previous owner's renting habits.  

As this vacation home will be out of state I will be paying a company to rent and maintain the home.  

This may be a personal choice but just thought I'd include this:  One house I'm considering is right on the beach but in a small town without a boardwalk or many shops or kids activities.  The other is 3 blocks away from the beach but in a larger (though still small) town with many family activities and shops.  They are larger homes (4&5 bedrooms).  The one on the beach is slightly cheaper.  In the experience of vacation property owners here, do one of these homes have more appeal than the other to renters or as an owner?

I didn't know how much or little to write so please ask questions and I'd be happy to answer.  

Thank you all in advance. 

Bob