[Calc Review] Help me analyze this deal

[Aleksander Dabrowski]

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*This link comes directly from our calculators, based on information input by the member who posted.

Hey BP

My Wife any I are interested in getting a vacation home we can use once or twice a year that will pay for itself (hopefully). i am just trying to play with numbers on this one, as the listed price is $100k higher than my analysis, but I would love your guidance surrounding the numbers I am using to see if im crazy anywhere or even too conservative. i assumed $150/night and 50% vacancy, assumed i charge guests for cleaning and added the airbnb 3% fee.

It clearly states hat it is a "mechanics special" but the pool is great and updated. I would be interested in full gut to a nice remodel, maybe raise the ceilings a bit but what do i know.

Thanks in advance for your thoughts!

[Luke Carl]

Originally posted by @Aleksander Dabrowski:

That is an interesting point about foreclosures. Thanks for the idea.

From a recurring expenses standpoint, I realize i missed poolcare and landscaping so I have to account for that. from experience in short-term rentals, what are everyones thoughts on the expenses i laid out in the analysis? are these figures off-base and is there something i am missing that might apply to most properties? we like the general gulf coast side of florida as well as Gatlinburg TN which are obviously vastly different but seem popular.

(copied below if easier)

Vacancy $2,250.00 (50%) 

Repairs $270.00 (6%) 

CapEx $270.00 (6%)

Electricity $150.00 (3%) 

Water & Sewer $50.00 (1%) Garbage $50.00 (1%) 

Insurance $150.00 (3%) 

Management $135.00 (3%) 

P&I $688.72 (15%) 

Property Taxes $241.00 (5%) 

Total $4,254.72 (95%)

These numbers are going to very greatly from market to market. For instance I'm in Gatlinbg and if you're 50% occupied around here you need to fire everyone. Should EASILY hit 80% occupancy around here. Airdnd is a useful tool if you're familiar with its flaws. Of which it has many. 

Things are fairly cut and dry around here. 

250k property grosses 50k 

500k property grosses 100k

Net profit greatly dependent on down payment (10% down 20% 15% or 100%?) 

Running numbers blindly can give you a headache. Speak with someone that is doing exactly what you're doing in the market you want to do it in.