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 $$$ ?
So, this property at a 50% discount will have a negative cash flow of 2500 at best. Does that seem about right or am I missing something? How do the people who paid the full million for their watersound rentals do it ? Just to be clear, I am not trying to be negative or sarcastic in any way, just trying to learn a little about walton beach real estate.
Thanks again
So on the income side, on the low end it might be a very very slow summer (thanks sowalgayboi, keep whistling) up to (an apparently skeptically received) 55,000( thanks AAbsolute). So I think I've got some numbers here.
On the Monthly cost side, I've got:
Mortgage: 3383(Principle + Interest, only, 550K total, 20% down, @ 8.5)
Taxes: 364( Walton county pa web site county rate @550,000 market value)
Utilities: 300
HOA: 332
Maint: 458( 10% of max estimated income )
Property management: 1800(40% of 55,000 /12 )
Insurance: 500???( Please help, I've searched this forum, I've goggled, can't figure a way to estimate full insurance for this property. I know its going to be bad )
Using the highest income estimate of 55,000 l have to carry: 2554 (7137cost-4583income)
Is it possible to manage it myself even though I live 3 hours away to save $$$ ?
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