Jim Esposito

Intercoastal Realty

954-336-3776

Vacation Rental Investments

Scenario #3

How Much Money Can You Make?

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Vacation Rental Investments, Fort Lauderdale, Florida

Scenario #3

15% Cash on Cash Return
With 30% Down on a 6% Mortgage

Single Family Home
A-Rated NE Fort Lauderdale Neighborhood
Approximately 2 Miles to Beach
3/2 with Pool
No Repairs Required
Must Be Furnished & Outfitted
Excellent Prospect for Appreciation

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.

These numbers are computed using an Occupancy Rate of 70%. Again, we project a property near the beach in one of the better neighborhoods of Fort Lauderdale will be a little above average in terms of demand.

Estimated Income Property Financials

(Occupancy Rate 70%)

Purchase

740,000

Estimated Furnish & Outfit

35,000

Total Investment

775,000

Estimated Gross

(Estimated 37 Weeks @ 2,813 per)

104,000

iTrip Management Fee (25%)

5,200

Effective Gross

98,800

Estimated Property Expenses

Property Taxes (Estimated)	13,300
Insurance (Estimated)	6,000
Pool	3,000
Landscaping	1,200
Electric (Est. 400 per month)	4,800
Water (Est. 1750 per month)	2,100

Estimated Expenses

30,400

Estimated NOI

68,400

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 $222,000. An Interest Rate of 6% on the balance of $518,000 equals an annual Debt Service of $31,800, so the estimated NOI works out to $37,320 per year. An estimated "Cash on Cash Return" of 15%, versus a Cap Rate of 8.8%.

30% Down Payment

222,000

Estimated Furnish & Outfit

35,000

Total Cash Investment

257,000

Effective Gross

98,800

Estimated Expenses

30,400

Debt Service

(6.0% Interest on $518,000)

31,080

Estimated NOI

37,320

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.