I need help! Opportunity in hand but I am fearful
We have a property manager willing to lease us a single unit apartment for $1600/Month unfurnished. Wifi would be around $50-70. I think we could get it furnished for around $1500.
There is 3 other single unit apartments in our area on Airbnb for $110/night flat. We do not live in a "destination location" per say.
Do these numbers work?
Our city says OWNERS are require to have a business license, and pay a 10% tax on rentals, and a short term vacation rental permit. We aren't technically owners of the property though, what should we do?
What else aren't we considering?
Thank you for all replies.
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#5 Short-Term & Vacation Rental Discussions Contributor
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#5 Short-Term & Vacation Rental Discussions Contributor
- Investor
- The worst town to live in, KS
So the place will probably cost you $2000 a month. With 100% occupancy (which is unrealistic) you'd gross around $3000 a month. Then you have to pay someone to clean it and restock it, that'll be about $500. Then you have taxes. So you'd gross about $250 a month with 100% occupancy. Suppose for 3 or more nights in a month the place is vacant (this is realistic). Now you're losing money.