Jim Esposito
Intercoastal Realty
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Invest in Vacation Rentals
Scenario #2
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A Guide to Investing in Vacation Rentals in Fort Lauderdale amd South Florida
Scenario #2
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 these "Ball Park" Scenarios using sample Properties, consulting with a vacation rental management company concerning projected rent and rate of occupancy. Hopefully, these will assist you in getting a handle on the numbers.
Please Note: these ball park estimates are 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 specific property might require in repairs, renovation or design to maximize your investment. These are only sample scenarios; actual projections for any property you may acquire will be entirely your responsibility to determine through your own due diligence.
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 & 2020 Year-End
Real Estate Reports
As Well as The Latest Stats
for Fort Lauderdale, Broward County & The State
from Florida Association of Realtors
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.
Everything You Always Wanted to Know About
Investing in (Owning & Renting Out)
Short Term Vacation Rentals in Fort Lauderdale
But Didn't Know Who to Ask
Would You Like to Invest in Vacation Rentals?
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