Updated about 4 years ago on . Most recent reply
What is the ROI (gross and net) for STR in OBX?
I am looking into STR in OBX, what my research shows so far is you get around 10% of house value gross rents annually. So if I buy for $500K, $50K in annual rents.
Sales Price: $500K
Gross ROI: 10% = $50K
PM + Maintenance Expenses: 20% of rents = $10K
Net ROI: $40K
Mortgage, Insurance ($2.2K/month): annually $26400
Down payment: $100K
Closing: $5K
Net profit: $50K - $10K - $26.4K = $13.6K
Net Cash on Cash return: $13600/$105000 = 13%
I am getting 12% on LTR in the same city as I am in. Is STR for this return worth it?
What am I missing here?