The Four Seasons of Vacation Rental Investing

Join me (Krista aka The Boss Lady Investor) and my business partner from Salty Dog Vacations, Kym Nguyen, as we explore the ins and out of investing in a vacation rental property.  We will be launching a new Podcast called, "The Four Seasons of Vacation Rental Investing" and this is Episode 1 of that podcast.  In each episode, we break down the:

Who?  Who is doing the investing?
Why?  Why this house/condo?  Why this location?
When?  When was it purchased and how do the markets/interest rates affect that?  When did we rent it?  When will it be sold?
How?  How did was it chosen as a vacation rental?  How was it paid for?  How much money is it making and will it make?
What?  What is the outcome?

Here are the numbers from this episode:

Bohemian Blowfish purchase price:  $364,000.00
Down payment:  $36,400.00
Furniture and decor cost:  $20,000.00
Annual revenue year 1:  $42,000.00
Monthly expenses:  $2950.00
Cash Flow:  $500/month $6,000/year

Invested with 4 women, each contributing about $14,000.00

Returns after 10 years:
Cash flow ($6,000 x 10 years) $60,000.00
Total mortgage balance left after ten years: $259,000.00
Anticipated value of home in ten years @ 3% growth: $489,000.00
Net Return:  $233,000 profit divide by 4
Net Return each:  $58,000 or 400+% or 40+% annually

Cash flow ($6,000 x 20 years)  $120,000.00
Total mortgage balance left after twenty years:  $99,000.00
Anticipated value of home in twenty years: $657,000.00
Net return: $621,000.00 or $155,000 each from a $14,000 initial investment.