Jim Esposito

Intercoastal Realty

954-336-3776

Fort Lauderdale Vacation Rentals

Scenario #1

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Fort Lauderdale Vacation Rental Investments

Scenario #1

$377,000 in (Estimated) Annual Income
And a Rapidly Appreciating Property

Coral Ridge Fourplex with Pool
Excellent NE Fort Lauderdale Location
Close to Beach
One 2/2, Three 1/1s
No Repairs or Remodel Required

We've put together some "Ball Park" Scenarios using sample Properties, consulting with Rene and Matty from iTrip Fort Lauderdale about projected rent and occupancy. Hopefully, these will assist you in getting a handle on the numbers.

Please be aware these are ball park estimates based upon our "best guess" professional opinion, may not necessarily be based upon the "Industry Standard" 60% average annual rental rate, but what we estimate, which will differ from property to property. In addition, there is no way of knowing exactly what any projected property might require in repairs, renovation or design to maximize your investment. We will assist you, getting the best numbers possible through your due diligence period, however, the actual projections for any specific property will be up to you to determine.

The first numbers are fairly agressive. South Florida and Broward County are a high demand locale. Nicely decorated, with a pool, close to the beach, in the prestigious Northeast Fort Lauderdale neighborhood of Coral Ridge we feel this property could be rented more than average, 45-47 weeks of the year.

Below those Agressive numbers, you will see a more conservative projection.

Estimated Income Property Financials

Purchase

1,999,000

One 2/2

(Estimated 45.5 Weeks @ 3,431 per)

156,136

Three 1/1

(Estimated 47.2 Weeks @ 2,987)

423,276

Estimated Gross

579,412

iTrip Management Fee (25%)

144,853

Effective Gross

434,599

Estimated Property Expenses

Property Taxes	36,005
Insurance (Estimated)	7,000
Pool	3,000
Landscaping	1,200
Electric (Est. 600 per month)	7,200
Water (Est. 220 per month)	2,640

Estimated Expenses

57,415

Estimated NOI

377,514

Estimated Cash on Cash Return

Projections above are for Cash Deal. Obviously. We don't know what down payment you plan to post, what your interest rate may be. Depends upon the loan you might qualify for. For an investment property you might be required to put at least 30% Down. In this example that would be $600,000. An Interest Rate of 6% on the balance of $1.4 Million adds up to $84,000, lowers the estimated NOI to $293,514 per annum. An estimated "Cash on Cash Return" of 48.9%, versus a Cap Rate of 18.8%.

Cash Invested (30% Down Payment)

600,000

Effective Gross

434,599

Estimated Expenses

57,415

Debt Service

(6.0% Interest on $1.4 Million)

84,000

Estimated NOI

293,514

Estimated Vacation Rental Financials

(Occupancy Rate 70%)

Purchase

1,999,000

One 2/2

(Estimated 36.2 Weeks @ 3,431 per)

124,909

Three 1/1

(Estimated 36.2 Weeks @ 2,987)

326,180

Estimated Gross

451,089

iTrip Management Fee (25%)

112,772

Effective Gross

338,317

Estimated Property Expenses

Property Taxes	36,005
Insurance (Estimated)	7,000
Pool	3,000
Landscaping	1,200
Electric (Est. 600 per month)	7,200
Water (Est. 220 per month)	2,640

Estimated Expenses

57,415

Estimated NOI

280,902

Estimated Cash on Cash Return

In this more conservative example, a 70% Occupancy Rate works out to an estimated NOI of $196,902 per annum, an estimated "Cash on Cash Return" of 32.8%, versus a Cap Rate of 14%.

Cash Invested (30% Down Payment)

600,000

Effective Gross

338,317

Estimated Expenses

57,415

Debt Service

(6.0% Interest on $1.4 Million)

84,000

Estimated NOI

196,902

Don't Forget to Add In Property Appreciation

In 2021 Average Sale Price for a SFR in Fort Lauderdale
went up 36.2%

Median Price increased 20%

And 19% in 2020

S&P Dow Jones Home Price Index

South Florida (Red) versus United States (Blue) from 1988 thru 2022
Shaded areas indicate U.S. recessions

See 2021 (and 2020 Year-End
Real Estate Reports

for Fort Lauderdale, Broward County & The State

from Florida Association of Realtors

2021 Year End Real Estate Statistics

Fine Print

This is a "Sample" Scenario. How much you can actually get in rent for any property will depend upon the location, the features (pool, hot tub, waterfront, etc.) and the condition of the property, and can only be estimated at this point. There are a number of resources you can utilize to determine your own estimates, and we suggest you do so before entering into any contract.

In addition, there is no way of knowing exactly what any projected property might require in repairs, renovation or design to maximize your investment. The ulltimate decision of how much money to put into any particular property is up to you, of course, but that may affect how much rent you can receive.

The "Tourist Taxes" for the State of Florida (6%), Broward County (6%), and the Tourist (1%) are not included in these numbers because they are collected by the Booking Website when the property is Booked. As part of their services, iTrip pays these taxes to the appropriate entity.