The Expense vs Income Vacation Home Chart

INVESTMENT PROPERTY ANALYSIS

3 BED HOMES

4 BED HOMES

5 BED HOMES

6 BED HOMES

Income per week (average amount over years doing your own bookings)

$600

$700

$800

$900

Annual Gross Rental

$21000

$24500

$28000

$31500

OPERATING EXPENSES

Real Estate Taxes

$2900

$2900

$3000

$3000

Hazard Insurance

$650

$750

$800

$850

Homeowners Assn

$250

$250

$250

$250

Management Fees

$1080

$1080

$1440

$1440

Pool/Lawn/Pest Care

$1860

$1860

$1860

$1860

Utilities

$3720

$3720

$3720

$3720

Cable TV/Phone

$720

$720

$720

$720

Cleaning fees (25 per year)

$1375

$1625

$1875

$2125

Licensing Fees

$200

$200

$200

$200

Estimated Total Outgoings

$12755

$13105

$13865

$14165

Income Left after Expenses

$8245

$11395

$14135

$17335

Mortgage Payments

Based on an interest rate of 6% you will pay approx. $720 per year per $10000 borrowed, so the mortgage amount set to break even on the above figures would be approx. as follows:

$114514

$158264

$196320

$240763

The amount of down payment is your investment that dictates the final price of the home you can afford. The important thing is to keep your mortgage payment close to the parameters above.

Please remember that the rental income shown above is based on you doing your own bookings. Most management companies will not pay this amount. Some will pay a fixed rate for each week rented out, others will pay you a percentage of the income they take.

When you think that the average price of a 4 bed home is ranged between $250,000 and $300,000 you will be looking at a minimum investment of $100,000. But don’t be put off if you do not want to put down so much money and don’t want to do your own bookings.