Loveland, OH · Member since 2017 · 21 posts · 4 votes
Details:
- Floating house on Lake Norris, TN, $35k purchase price - $210/month mooring fee for the marina
- Comparable rental units range from $100/night to $400/night in peak time (June - Early September)
From what I've seen, this should have, on the low end, $9k/year in revenue, and the payments per year should not be more than $7,500 (and that is with a 10-year loan and allowing another $300 per month average for expenses, including the mooring fee). Seems to me that it should at least break even. Thoughts?
Loveland, OH · Member since 2017 · 21 posts · 4 votes
9y
Break even is worst-case scenario - It should actually cash flow at least $1,500 per year, if not over $3k or even $5k. It isn't unreasable in the least to expect a place on a lake like that to average $150/night in the peak time (90 days), which is $13,500, and with $7,500/year in expenses, that's cash flow. Not saying it's guarunteed to average that return, but hey, I'm trying to look at the worst-case scenario. HIGHLY unlikely that it would only average $100/night over the peak 90 days, which would still be $1,500/year cash flow.
Loveland, OH · Member since 2017 · 21 posts · 4 votes
9y
What are different options? Handling bookings myself and only hiring a cleaner, vs paying a management company to handle all of it? I've been leaning towards letting a management company handle it, as I'd never be there to check up on the place. There are marinas on that lake that will handle management for floating houses, moored in their marina