Year round demand, lot less maintenance issues and amazing cash flow.

So post purchase repairs would be $9.2K+$10K+5K (worst case scenario) = $24.2K or let's round it to $25K.

So post purchase repairs would be $9.2K+$10K+5K (worst case scenario) = $24.2K or let's round it to $25K.   

There are some features of this home that I would like to share to help me with the decision.This STR is only 6 years old, in very good shape, is year-round so has Heat/AC (which we do not) , a larger unit  (4bd / 4 bath & sleeps 12) & has been  booked each year with repeat vacationersThe property has not taken advantage of off season rentals, which happens in this area ( Oct - May) .I have included these #s conservatively in my NOI.I understand the formula for commercial investment property, NOI / cap rate.Can I use this same formula to evaluate a purchase price so I am not over paying for the property...

We're just going to use nice round simple numbers.

I'll use round numbers to look for an answer from you guys.I have an investment property that I purchased for 100K with 20% down.

I'd pay the first round of treatments, while informing them (and have in lease) that they will be responsible for future costs of pests as motivation to keep the place clean.

Now it seems homes sell all year round.

I suspect that your new renters may discovered that you are available on a round the clock basis to take care of any small issue as soon as it comes up or occurs which has potentially become an annoyance due to frequency .

., more than half of the calendar year) for the Borrower's personal use and enjoyment·The Borrower may rent the property on a short-term basis provided that the property is not subject to any rental pools or agreements that require the Borrower to rent the property, give a management company or entity control over the occupancy of the property, or involve revenue sharing between any owners and the developer or another party·The Mortgaged Premises must be in such a location to function reasonably as a second home·The second home must be suitable for year-round occupancy with the following exception: a second home with seasonal limitations on year-round occupancy (e.g., lack of winter accessibility) is eligible provided the appraiser includes at least one comparable sale with similar seasonal limitations to demonstrate the marketability of the subject property.