Beach Rental Property Analysis
First time poster and new to the world of REI! We are looking at purchasing our first investment property in our favorite vacation spot.
4/3 1500 Sq foot beach house for $675k. This is somewhat competitive in this market. Turn-key and fully furnished.
Financing plan is hard money loan for 25% (possibly using some of our own capital), and DSCR loan for the mortgage. Average projected monthly rental income is around 8-11k (seasonal fluctuation).
Using the rental calculator tool (with estimated taxes/insurance/PM fees) I'm still only generating $1000/month, which isn't enough to cover the hard money loan. The BIG thing I can't begin to estimate and help me best understand if this is a good buy is whether or not the tax benefits are going to keep me in the black?
I suspect that may be a 5-10 yr property for us so we could claim some depreciation. Monthly operating costs are estimated to be around $6700 (>50%!), but all of this should be tax deductible right?
I've been crunching these number so long and we REALLY want this place....someone help guide me in the right direction!