All Forum Posts by: Luis Rangel

Hello Jaysen,

Appreciate it for the explanation on why vacancy it´s costing money.

The reason why it was renting 9 out of 12 months is because this study was for a vacation rental in the pacific coast of Costa Rica.

• You're forgetting CapEx. Figure ~7.5%. A= (can you clarify on this point?)
• Your insurance and taxes look way to low.  A=  the property tax in CR is ~0.25% of the purschase sale; Agree with you is low.
• What's the "misc." expenses? A=  It was phone and internet costs.
• The HOA fees are going to be a killer at nearly 20% of rents. A= My findings at the end of two weeks for buying a vacation property in CR was that HOA´s of ~20% + Property Manager real fee ~24% kills most of the business cases that i analyzed. So now I changing to a traditional rent or commercial property to lower the (1) property manager fee, (2) utilities costs & (3) HOA´s in the case of commercial.

Thanks for your input!   

View report

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

Hello all!

This report shows (A) ROI 1.01% with a rent of $2,100 per month and add a 25% vacancy due that i am assuming it is rented 9 out of 12 months, however i am not agree that every month is reflected an "expense" of $525 equivalent to 25% of vcancy; I guess am just confused why vacancy is considered an expense, so then what i did is (B) ROI 1.18% what i did is to multiply ($2,100 x 9) / 12 = $1,575 in order to normalize the rent in 12 months which I realize is not true in the sense that the report shows a rent of 1,575 per month, however income minus expenses it is accurate. Note: i know this is not a good BC based on the ROI but this is something that i need some insight for any long term rental study.

I just don t know whether A or B or none is the correct way. ¿Hope someone can share some thoughts about it?