Help with vacation rental analysis?

9 Replies

I've been watching out for possible Jersey Shore vacation rental deals for a while now and might have found one for which the numbers work.  Does anyone out there have experience analyzing such deals?  Looking for help predicting expenses (like maint/cap, insurance, cleaning, management, etc.) and revenue (I've computed my own rental season curve, but I'd love someone to validate that for me).

What I'm looking at is an MLS duplex that *I think* would rent for a total of $4300/wk at peak, at a least price of $519K.

Thanks,

Chaz

Ther

There are quite a few things that need to be found out before analyzing the property. Here is the list:

1. Mortgage Payment or paid for in cash?

2. Taxes, property and short term taxes?

3. Utility costs?

4. Insurance costs?

Once you have an honest assessment of these expenses you can get an accurate profit and loss projection. 

Thanks,

Eric 

@Eric A. Thanks for replying.  Specific answers to your questions:

1. Assuming mortgaged with 20% down, so $103K-ish.

2. Not sure what you mean by "short term taxes". Property taxes are $3927/year.

3. I'm assuming for the moment that it would be operated only during "the season" of roughly half the year and winterized the rest of the time and that while the units were occupied, utilities could total $700/month.

4. I don't know about insurance; that's one of my particular questions.  I have $3000/year in my calculations, but I have no experience with insurance on stuff at the shore.  I can say that one of the units is at ground level and I expect that will raise the insurance cost some.

Do you know of/have a rental property calculator somewhere?  Do you have experience with vacation rentals?

Thanks,

Chaz

Short term rental taxes are levied by some municipalities. Check on that in your area.

@Nancy Bachety Ah, thank you.  A quick googling tells me that that's not an issue with the usual Jersey Shore weekly rental.  They did pass a law to cover AirBnB-type rentals.

Thanks,

Chaz

Charles,

I would run a cash on cash analysis (connect with me and I can send you a spreadsheet for this excersize).  Then I would spend time searching for like properties on Airbnb and VRBO, looking at ADR's (average daily rates) and occupancy to validate my numbers.

Mike

@Michael Greenberg AirBnB-type rental isn't my goal.  I want to do normal weekly Saturday-to-Saturday Jersey Shore rental.  I've run these numbers through my usual year-round monthly rental calculations and they just seem to out too positive, which makes me nervous.  Here it is run through the BP rental calculator:  https://www.biggerpockets.com/calculators/shared/4...

Thanks,

Chaz

@Charles McCabe Even with weekly rentals you can use sites like Airbnb and VRBO to analyze ADR's.  These numbers do not seem to far fetched though I'm not familiar with the Jersey Shore.  Nothing ventured, nothing gained Chaz!

Best of luck,

Mike

looks good. How are you managing it? And what will it be doing on the off-season?

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