Jim Esposito

Intercoastal Realty

954-336-3776

Fort Lauderdale Vacation Rentals

Scenario #1

The Best Real Estate Investments

Fort Lauderdale Short Term 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

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 & 2020 Year-End
Real Estate Reports
As Well as The Latest Stats

for Fort Lauderdale, Broward County & The State

from Florida Association of Realtors

2021 Year End Real Estate Statistics

Fine Print

Again, this is a "Sample" Scenario. All numbers quoted here are our theoretical "Best Guess" estimate for educational purposes. We make no representations concerning their accuracy. How much you can actually get in rent for any property will depend upon the current market, the location, the features (pool, hot tub, waterfront, etc.) and the condition of the property. Property Tax will be determined by the County Property Appraiser and dependent upon their valuation and your own qualifications. Insurance will be determined by the coverage and insurer you decide upon. It is your own responsibility to research and estimate what these numbers might be for any property in which you are considering to acquire.