I am looking at a home that really needs almost nothing (built in 88, AC and roof 2 years old, newer appliances) and sale price of about $220,000 (finance $176,000). Would fully furnish it and offer it for $3,000/month for 5 months and $1,600/month for 7 months. It is a few houses from the water (Intracoastal) very near a cool downtown (1.5 miles via a rail trail), and 6 miles from Gulf of Mexico beaches).
These typically are full in the 5 months winter (month at a time to different renters) and the getting longer stays during the off-season (3-6 months to one person).
Average rent $2,183
$5,000 to furnish nicely
$3,600 Property taxes
$1,500 flood insurance
$2,000 home owners insurance
I'd cover power bill up to $75/month, all cable at $100, and water up to $75/month for the higher rent months.
So:
$19,500 in expenses (financing 80% at 4.25% for 30 years)
$26,200 in income
$6,700 gross before maintenance and vacancy added in.
I compare this to a 1% rule single family home ($1,500/month for 3 bedroom, but unlikely to get high rent) and I could buy a cheaper property ($170,000 purchase and finance $153,000) and rent it with 1-year lease and end up with $5,800.
Anyone do the short-term deal? Any advice overall?