thoughts about mixed use fl rental/vacation home`

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gips
Posts: 548
Joined: Mon May 13, 2013 5:42 pm

thoughts about mixed use fl rental/vacation home`

Post by gips » Sat Apr 20, 2019 11:52 am

I have family in fl, would be nice to spend 2-3 months per year there. Anyone have a link to forums/tools (spreadsheets I guess) where we could become educated on finances/operational aspects of vacation rentals?

thanks,

oldmotos
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Joined: Fri Aug 04, 2017 9:37 pm

Re: thoughts about mixed use fl rental/vacation home`

Post by oldmotos » Sat Apr 20, 2019 12:07 pm

I don't know of the forums/tools you are looking for but one option would be to meet with Realtors in the area you are interested in. They can give usually you an estimate of the income potential of a property and expenses. In my experience the estimated income was lower than the actual income I received after the purchase and the expenses were higher but at least it was a place to start. The item I most underestimated was repairs. In the SW area of Florida the high season is Jan. through April and the income from that period will cover most expenses but usually no return on investment. Other areas of Florida are completely different.

tibbitts
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Re: thoughts about mixed use fl rental/vacation home`

Post by tibbitts » Sat Apr 20, 2019 12:19 pm

gips wrote:
Sat Apr 20, 2019 11:52 am
I have family in fl, would be nice to spend 2-3 months per year there. Anyone have a link to forums/tools (spreadsheets I guess) where we could become educated on finances/operational aspects of vacation rentals?

thanks,
I have a similar situation. I don't rent. The times you can make money renting are the same times you want to use the property.

Topic Author
gips
Posts: 548
Joined: Mon May 13, 2013 5:42 pm

Re: thoughts about mixed use fl rental/vacation home`

Post by gips » Sat Apr 20, 2019 12:22 pm

thanks, I'm thinking there must be spreadsheets where you enter rental estimates and a detailed set of expenses (as a newbie, I'm sure I'd miss many of these) and it calculates expected cash flow and returns.

I wouldn't expect realtors to provide accurate information...it's not in their interest, they don't represent the buyer and they prob don't have accurate data.

Topic Author
gips
Posts: 548
Joined: Mon May 13, 2013 5:42 pm

Re: thoughts about mixed use fl rental/vacation home`

Post by gips » Sat Apr 20, 2019 12:24 pm

tibbitts wrote:
Sat Apr 20, 2019 12:19 pm
gips wrote:
Sat Apr 20, 2019 11:52 am
I have family in fl, would be nice to spend 2-3 months per year there. Anyone have a link to forums/tools (spreadsheets I guess) where we could become educated on finances/operational aspects of vacation rentals?

thanks,
I have a similar situation. I don't rent. The times you can make money renting are the same times you want to use the property.
our purchase will be constrained by proximity to my family, it turns out summer is high period there, so that works well for us.

dave_k
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Joined: Sat Dec 26, 2015 8:25 pm

Re: thoughts about mixed use fl rental/vacation home`

Post by dave_k » Sat Apr 20, 2019 12:45 pm

My wife and I have a beach house on the gulf in SW FL. We use it about a month per year and rent it the rest of the time through an agency. We don't go in peak season (winter through spring break) since that's when it earns the most (and is crowded). We have a small positive cash flow, even after paying for significant expenses like renovating the kitchen and bathroom, various repairs, replacement of things that wear and break, etc.

However, we bought it at the bottom of the market, and we spend a lot of the time we're there working on it ourselves. Renovations and repairs are mostly DIY. If that wasn't the case, we'd be losing money. It's also waterfront in a popular vacation area, so I'm not sure how it would compare with other types of property - it's expensive, but it also earns more. It's gained so much value over the last 5 years it wouldn't make much sense to buy it now for rental income. The rental income has not grown much at all, but thankfully neither have the expenses.

We plan to retire there, and didn't buy it just as an income property. We hoped that it would at least come close to covering the costs, and are happy that it has. Even when we're retired there, we may rent it out for spring break and have it pay for a vacation elsewhere, and spend summers in the northeast (when it won't rent for much, but better than nothing).

PM me if you have specific questions, and I could provide a summary of income and expenses.

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