Please Help Me Analyze MY FIRST DEAL EVER :)

[Amy O'Brien]

Hi friends,

I am looking at a property that is a vacation rental - it has solid rental history and already has some bookings for next year. Here are the details - the NOI is 90K, the cashflow is 44K - to calculate that I did NOI - (mortgage payment + reserves) I put reserves at 1K. The cash on cash if I did this correctly is 29.89%

Here are the details 

Price - 700K

20% Down 

Interest rate 2.75%

Mortgage Payment - 3286 

Summer Rental Income Only - 109K

Expenses - 7800/annuall (taxes and insurance are in the mortgage payment - together those are 10K)

If I did the calculations correctly the cash on cash is 29.89% I feel like this is too good to be true. Help! 

I am also concerned about this only renting about 5 months out of the year. I have a lot of ideas on how to keep it booked throughout the year though.