All Forum Posts by: Jay S.

@Ibn Abney

Thank you so much! This info is helpful. I’m actually trying to calculate my purchase price. 

This is in the suburbs of Chicago. Not even really close to Chicago. Probably 50 miles away. It’s in a nice area. The zip code is prestigious.

I was thinking $375k 

Looking at this 4 unit deal.  Numbers are as follows....

This is my first deal and am looking for some more experienced guidance.

Monthly Gross Rents: $3700

Laundry & MISC: $100

Annual Scheduled Income: $45,600

Vacancy 2% & Loss: $1000

Gross Income: $44,600

Expenses:

Taxes: $10,000

Insurance: $1500

Trash: $600

Lawn Maintenance: $800

Snow Removal: $500

Gas: $500

Electric: $1300

Cleaning/Janitorial: $900

Repairs: $1000

Turnover Replacements: $1500

Legal: $300

Total Projected Expenses: $18,900

Projected NOI (before debt service): $25,700

@Chris Grenier What kind of cap rates do you normally see on long term rentals? I definitely agree that it would be less headache, but not sure I've come to the same conclusion about ROI. I appreciate your perspective.

@Valentina Naumenko Thank you!  Does the management fee of 15% include cleaning services?  Or is that strictly a fee which I should view as for "marketing" the property.  And then I would still need the services from a company like VST Services at $70-$129 per cleaning.  If i do my own marketing, could i depend on the services of VST solely, or is a property manager still needed?  

What about maintenance?  Who do I call if the HVAC isn't working during a guest stay for example?  What are the fees for a call like that?

@Erica Muller thank you!  This is exactly the kind of information I was looking for!  How would you go about finding a "caretaker"?  Are there services out there for this?  Or is it more like I would need to find somebody local that I have a personal relationship with?

@Rox P. I'm currently focused on the Clearwater, FL area.  I've found a cond that is about $350,000 and has a good rental history.  It has consistently generated $55,000 in revenue annually.  Even if I can net $35,000 that is 10% on total investment.  Plus I can benefit from the depreciation and interest tax deductions, as well as any capital appreciation.

@Chris Grenier Why do you say not to expect a respectable ROI?

I want to purchase vacation rental property in Florida.  I have an understanding of how to manage the marketing of the property myself.  What I struggle with is how to manage the cleaning, laundry, and maintenance of the property.  I live in Chicago, so I will need to have local people/service companies that I can depend on.

I'm interested in learn from others about how they have solved this issue.  I know that there are local property management companies, is that who I should go to?  Or do I just find local cleaning companies? Can cleaning companies also do laundry of the towels and sheets? Will they change light bulbs, batteries, etc?   Who do I call if there is a problem with the HVAC or something like that while a guest is staying?  

I would really appreciate any advice on how to manage these things!  I realize that this is really the biggest part of managing a vacation rental and probably what sets the best apart from the rest.