Now that you have those numbers, you will take the total value of the homes, subtract the assessed land value (land doesn't depreciate), then subtract the applicable extra depreciation that we calculated above.

I am still new to a lot of the REI terminology and calculations, so I'm just using the amount spent on renovations as my "cash invested."

How do we calculate occupancy and what is to be "Normal". 

I wish you the best of luck and please, put your numbers through an ROI calculator to assess your investment.

If you don't calculate it in now,...? 

Use search function.People have posted STR calculators on here.

Instead, it could impact your cost basis in the property, which would affect depreciation and future tax calculations.

.✅ Calculate potential profit/loss using this simple formula:📊 (Monthly Rent - Total Monthly Expenses) = Net Rental Income3.

Also, take a look at a condo if you really want to be in SB proper, it might be a way to get started, and calculate the insurance and maintenance that an HOA would pay

I want enough money coming in so the business can sustain itself when issues occur with maintenance or vacancy.If you wanted to do this with only 20% down ($46,000), which is all you need for a conventional loan, here is how the calculations change.Total mortgage + escrow $1,493.33 per month with cashflow reduced to $306.67 per month.I prefer to overestimate purchase price, interest rates, and homeowners’ insurance to be conservative.