Investing in Vacation Rentals-The Bohemian Blowfish 40% Annual Returns!

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. 

Thanks for listening!

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