It's gonna be hard to better than this in WaterSound Beach

Can someone with local rental experience please ballpark a cash flow for this as a short term vacation rental ?

Assume 100K to complete and 50K to furnish and equip( too low?? is that realistic ?? ), out of town owner so a full service management agency would be utilized.

Will rental - expenses( management, vacancy, insurance, taxes, what else did I leave off?) come close to making the mortgage of 3383( 550K total, 20% down, @ 8.5( from bankrate.com))

It would be great to get some real world local input, thanks for any help

You also need to factor in community fees.

You also need to factor in community fees.

Yea, thanks, good one, the mls said it was 1000 a quarter, but just to confuse the issue the 1000 per quarter includes Accounting, Ground Keeping, Management, Recreational Facilities, Trash Disposal, Security. I don't really know what "Management" covers, but for 4k a year I'm guessing that it is not full vacation rental property management......???

Yea, thanks, good one, the mls said it was 1000 a quarter, but just to confuse the issue the 1000 per quarter includes Accounting, Ground Keeping, Management, Recreational Facilities, Trash Disposal, Security. I don't really know what "Management" covers, but for 4k a year I'm guessing that it is not full vacation rental property management......???

:rofl:

Can someone with local rental experience please ballpark a cash flow for this as a short term vacation rental ?

Assume 100K to complete and 50K to furnish and equip( too low?? is that realistic ?? ), out of town owner so a full service management agency would be utilized.

Will rental - expenses( management, vacancy, insurance, taxes, what else did I leave off?) come close to making the mortgage of 3383( 550K total, 20% down, @ 8.5( from bankrate.com))

It would be great to get some real world local input, thanks for any help

I'm just a regular guy lacking formal investment or banking education. I think Lot 1 which is the $450,000 home would rent for $3,000 per month in a long term rental arrangement. If someone put together a real vacation rental program there would be about $45,000 to $55,000 in seasonal rental income.

I know the home can be completed just right for either vacation rental or personal residence for $100,000. I think it could be furnished complete with everything it would need to put into the rental program for $30,000.

Yea, thanks, good one, the mls said it was 1000 a quarter, but just to confuse the issue the 1000 per quarter includes Accounting, Ground Keeping, Management, Recreational Facilities, Trash Disposal, Security. I don't really know what "Management" covers, but for 4k a year I'm guessing that it is not full vacation rental property management......???

WaterSound Beach also has a full gym which is very, very nice and there is no charge for Owners per visit. WaterSound Beach has kayaks and other recreational stuff at no cost. WaterSound Beach currently has dues of about $996.00 per quarter. There's 24 hour security and several pools. Most of the pools have a cottage attached to get out of the weather. The cottages have fireplaces and living room type space as well as full commercial kitchens so Owners can have extended family or guests get together's.

If someone put together a real vacation rental program there would be about $45,000 to $55,000 in seasonal rental income.

What is your basis for that amount of seasonal rental income?
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You also need to factor in community fees.

....and taxes, and insurance, and utilities, and grounds maintenance, and.......

What is your basis for that amount of seasonal rental income?
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I think you are asking why I think that amount is accurate. If so, I have built about 100 buildings in Walton County. Much of them were in resort rental communities. I choose to live where I work so I can be at my work. For about 10 years I have lived in Rosemary, Watercolor, Seacrest etc. Building these homes and living and sometimes renting these homes has given me valuable real world experience. Some customers of mine, and friends have actively rented their homes through Coastal Living Magazine as do it yourselfers. Some customers and friends have actively pursued short term rental business through local rental agencies. Some customers and friends use VRBO.

WaterSound Beach has a JOE run cottage rental agency that is heavy condo, but lacking single family residential like the subject property. They rent SFD's well. Another friend chose to go the VRBO route in WaterSound and has real solid bookings. One other person uses Coastal Living to advertise and is consistantly booked solid and gives overflow rentals to someone I know.

If your question is about basis as an accounting term, I have no knowledge or advice.

I think you are asking why I think that amount is accurate. If so, I have built about 100 buildings in Walton County. Much of them were in resort rental communities. I choose to live where I work so I can be at my work. For about 10 years I have lived in Rosemary, Watercolor, Seacrest etc. Building these homes and living and sometimes renting these homes has given me valuable real world experience. Some customers of mine, and friends have actively rented their homes through Coastal Living Magazine as do it yourselfers. Some customers and friends have actively pursued short term rental business through local rental agencies. Some customers and friends use VRBO.

WaterSound Beach has a JOE run cottage rental agency that is heavy condo, but lacking single family residential like the subject property. They rent SFD's well. Another friend chose to go the VRBO route in WaterSound and has real solid bookings. One other person uses Coastal Living to advertise and is consistantly booked solid and gives overflow rentals to someone I know.

If your question is about basis as an accounting term, I have no knowledge or advice.

I'll rephrase my question:

X x Y = $45,000 - $55,000

Please solve for X and Y

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....and taxes, and insurance, and utilities, and grounds maintenance, and.......

Hmm, all that expertise and you forget that a mortgaged house generally includes the insurance in the payment and grounds maintenance is covered in your HOA dues.

needacoolname, no one can honestly show you a cash flow for any rental property in this market. The fact is that the low groan of non existent rentals this summer is still around the corner, but you can join in the chorus of whistlers that are trying to drown it out.

I'll rephrase my question:

X x Y = $45,000 - $55,000

Please solve for X and Y

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There are only a couple primary colors, but their combinations and variations are unlimited.

There are only a couple tastes, but their combinations and variations are unlimited.

There are only a couple notes, but their combination and variations are unlimited.

To succeed in the business of vacation rentals is like any other challenge. To do your best I believe you should engage in the business conventionally, but be inexhaustable in your efforts and be unconventional to get the most out of it.

Something along the lines of this home South Walton Beach Rental - House

or this South Walton Beach Rental - Beach Cottage House

or this Florida Panhandle - House

or this South Walton Beach Homes - Home

or this Coastal Cottage See a Beautiful Sunset - House with Carriage House

or this South Walton Beach Vacation Rental - House

or this 3BR/3.5+BA Fantastic Views of the Gulf - Vacation Rental Availability Calendar

11 weeks at $3,500 with a 5 month winter rental at $2,300.

11 weeks at $3,500 with a 5 month winter rental at $2,300.

Can you find one of these? I've never heard of one.

Can you find one of these? I've never heard of one.

I've rented all over 30A month to month. Carriage houses in Rosemary are 1,000 per month, main houses can be 2,000 and up. We rented both 4 and 5 bedroom in Watercolor monthly. There are always people renting beautiful homes month to month.

I'd like to thank everyone for all of their input on my cash flow question. I know it takes time and effort to respond to these questions and I do appreciate everyones thoughts and insights .

So on the income side, on the low end it might be a very very slow summer (thanks sowalgayboi, keep whistling) up to (an apparently skeptically received) 55,000( thanks AAbsolute). So I think I've got some numbers here.

On the Monthly cost side, I've got:
Mortgage: 3383(Principle + Interest, only, 550K total, 20% down, @ 8.5)
Taxes: 364( Walton county pa web site county rate @550,000 market value)
Utilities: 300
HOA: 332
Maint: 458( 10% of max estimated income )
Property management: 1800(40% of 55,000 /12 )
Insurance: 500???( Please help, I've searched this forum, I've goggled, can't figure a way to estimate full insurance for this property. I know its going to be bad )

Using the highest income estimate of 55,000 l have to carry: 2554 (7137cost-4583income)

Is it possible to manage it myself even though I live 3 hours away to save $$$ ?

So, this property at a 50% discount will have a negative cash flow of 2500 at best. Does that seem about right or am I missing something? How do the people who paid the full million for their watersound rentals do it ? Just to be clear, I am not trying to be negative or sarcastic in any way, just trying to learn a little about walton beach real estate.

Thanks again

On the Monthly cost side, I've got:
Mortgage: 3383(Principle + Interest, only, 550K total, 20% down, @ 8.5)
Taxes: 364( Walton county pa web site county rate @550,000 market value)
Utilities: 300
HOA: 332
Maint: 458( 10% of max estimated income )
Property management: 1800(40% of 55,000 /12 )
Insurance: 500???( Please help, I've searched this forum, I've goggled, can't figure a way to estimate full insurance for this property. I know its going to be bad )

Using the highest income estimate of 55,000 l have to carry: 2554 (7137cost-4583income)

Is it possible to manage it myself even though I live 3 hours away to save $$$ ?

So, this property at a 50% discount will have a negative cash flow of 2500 at best. Does that seem about right or am I missing something? How do the people who paid the full million for their watersound rentals do it ? Just to be clear, I am not trying to be negative or sarcastic in any way, just trying to learn a little about walton beach real estate.

Thanks again

You are missing something....you're using the "Highest Income Estimate of $55,000" when you're figuring your possible gains/losses--you'd better figure the worst case scenerio...if you can financially handle that, then you'll be OK. Can you dig it?

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You are missing something....you're using the "Highest Income Estimate of $55,000" when you're figuring your possible gains/losses--you'd better figure the worst case scenerio...if you can financially handle that, then you'll be OK. Can you dig it?

.

Yep, best case is 2554, worst case is 5337( no income, no management fee( but I bet they will still find away to charge me something even if they don't bring any renters)

You are missing something....you're using the "Highest Income Estimate of $55,000" when you're figuring your possible gains/losses--you'd better figure the worst case scenerio...if you can financially handle that, then you'll be OK. Can you dig it?

.

Yep, best case is 2554, worst case is 5337( no income, no management fee( but I bet they will still find away to charge me something even if they don't bring any renters)

40% is the high end of management fees. Talk to some of the other rental companies and the area and your looking at something more reasonable like 15-30%.

Yep, best case is 2554, worst case is 5337( no income, no management fee( but I bet they will still find away to charge me something even if they don't bring any renters)

You might also want to figure in the cost of furnishing and equipping the joint...I know when I drop $3500 per week for a vacation rental, I expect more than plastic K-mart chairs; a cable spool-dining table; a Goodwill futon; and Goose pattern melamine dishes.

Start with a decent $120+ coffee maker; (and a coffee bean grinder), and work up from there.
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You might also want to figure in the cost of furnishing and equipping the joint...I know when I drop $3500 per week for a vacation rental, I expect more than plastic K-mart chairs; a cable spool-dining table; a Goodwill futon; and Goose pattern melamine dishes.

Start with a decent $120+ coffee maker; (and a coffee bean grinder), and work up from there.
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We talked a bit already about an interiors and rental ready finish of $35,000. I don't know the interest carry on $35,000 so it needs to be calculated. There are some home furnishing companies doing 12 months/0 down/same as cash. I furnished one 5 bed/5 bath in WaterSound Beach for 17,800 excluding sheets, dishes, etc.

Yep, best case is 2554, worst case is 5337( no income, no management fee( but I bet they will still find away to charge me something even if they don't bring any renters)

All the VRBO links I proferred were rentals by owner. In that scenario there is no $1,800 per month in maintenance fees. I think you'll find that most successful VRBO's have small, local cleaning/maintenance companies handling the check out responsibilities for about $200.00 per visit on average. The trade off is that you may well get WaterSound Beach's Cottage Rental Company to take this home into their program and possibly gross $65,000. They charge a full service rental management fee, but your guests get use of the WaterSound Beach club as part of their program.

Yep, best case is 2554, worst case is 5337( no income, no management fee( but I bet they will still find away to charge me something even if they don't bring any renters)

With a wise VRBO plan you may now be talking about $850/mo as part of an overall plan. I think you'll find if you interview VRBO users that they get a predictable amount of repeat renters. The individuals I know treat this as a business and track their advertising successes and failures to adjust their listings over time.

I believe that this $450,000 WaterSound Beach home with thoughtful finishes will completely cash flow by the 3rd season and be profitable from that point forward for many years. WaterSound is JOE's main brand now and WaterSound Beach is the pinnacle of the brand.

I believe this home could be finished and decorated rental ready for under $600,000 and sell for $825,000 within 100 days.

I believe this home could be finished and decorated rental ready for under $600,000 and sell for $825,000 within 100 days.

...why aren't you doing it then?

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...why aren't you doing it then?

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I'm limited to two at a time which is where I am currently.

I make nothing when both of these close. This Thread is only about the best priced property in WaterSound Beach. There won't be a better priced home in WaterSound Beach than the $450,000 home from this day forward.

There are several qualified contractors on the approved list who would be happy to have the opportunity to perform the final trim out on this project and a qualified do-it-yourself buyer could do even better.