Hello everyone, my name is Luis Marin. My wife and I purchased our second home and what we believed to be are dream home at the end of 2023. We have $400K into the property between Down Payment and Renovation. After living in the property for a full year, we have come to terms and accepted that this is not our ideal location. We have 3 boys who are actively in sports and the location of the house just doesn't work out for us.
Before moving to the house, we talked to the listing agent and found out that the house was a short term rental property. The previous owner had it listed with them for weekly summer rentals. The house was fully booked between June-August. The weekly rentals were $8,000 (June) & $8,500 (July-August)
As the summer season rental is approaching us, we are faced with a tough decision. Do we sell the property and recouperate our investment? Or do we hold on to it and turn into a rental property. We are very new to this and have no experience what so ever. We have our starter home currently rented out and can potentially move back.
I have some data that I would like to share with you. Of our possible rental scenarios. I carried double the cost on Gas and Electricity to be safe.
==== Projected Income ====
**Off Season**
-$4,000/Month
Rent Period: September - May (7 Months)
Projected Income: $28,000
**Summer 1**
-$8,000/Week
Rent Period: June (4 Weeks)
Projected Income: $32,000
**Summer 2**
-$8,500/Week
Rent Period: July-September (12 Weeks)
Projected Income: $102,000
**Optional** (Basement Apartment)
-$2,000/Month
-Rent Period: Year Round
Projected Income: $24,000
TOTAL PROJECTED INCOME: $186,000
==== Operating Cost ====
-Mortgage: $84,000 ($7,000/Month)
-Utilities: $36,200
Gas $6,000 ($500/Month)
Electricity $6,000 ($500/Month)
Internet $2,400 ($200/Month)
Garbage $5,000 (Estimate)
Pool $4,000 ($250/Week)
Landscaping: $4,000
-Mowing: $2,400 ($150/Week)
-Clean Ups: $1,600 (Spring & Fall)
-Weekly Turnovers: $8,800 ($550/Week)
==== Legal Cost ====
Summer Rental Fee: $20,100 (15% of $134K)
Sandwich Rental Tax: $6,855 (15% of $45,700)
NET PROFFIT: $38,845.00
