I’m looking at a property in Miramar Beach, FL. Chase flow would be in the negative at that price. What kind of cash flow percentage should be expected in a beach vacation property?
I bought a property in Miramar Beach and closed in February. I would not buy if the property does not cash flow. My property should generate about 20K in profit this year. If you are not self managing then that is the only reason cash flow would be down. As with any investment cash flow must be positive. The only exception would be crazy appreciation. I do not rely on appreciation. I can tell you my property has appreciated at least 100,000 in the first season, but I’m in for the long hall.
@Kenneth Garrett appreciate it! My first issue when evaluating is looking at a management company, 28% . Would 10% be fair to account for cleaning / listing myself?
My cleaning fees are $250 for each cleaning. The guests are charged a cleaning fee, so it’s no cost to me. I self manage so I can’t speak on that. I live a 1000 miles away. I rely on my cleaners for information on repairs and supplies. They can do small repairs. I had to have an exhaust fan replaced the other week. Found a contractor who was available. I use keyless door entry and a ring door bell to make sure crazy parties are not going on.
@Kenneth Garrett awesome! I’m ready to make the leap, I have the funding, just looking for a good deal. This property listed at 354k with 40k in gross rentals last year. Est cash flow of only around 12,500 yearly. Cash on cash 4% roughly.
@Kenneth Garrett thank you!
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