Updated over 5 years ago on .
First property for air bnb
First property purchase!! (essentially turn key, pre foreclosure) 3bed/2 bad/ 1350 sq ft
Purchase price $170,000
Appraisal at $205,000
Annual Expenses: $13,000/year (utl 3120, maint 1200, ins 2400,advert 1000, supply 100, lawn 1000, 6% tax 4180)
Annual Mortgage: $9,056
Expected Annual income @ $200/night, 60% vacancy: $43,200
Annual Cash Flow: $20,937
Cap rate: 17%
We assumed high end of expenses list and low end of nightly rent, used vacancy from searching our property type and area on air bnb.