Income * Expenses * Advantages
Estimated annual expenses:
HOA dues $13,680.00
Property Taxes $15,000
Utilities $ 5,000.00
Minor Maintenance $ 1,200.00
Repair&replace $ 20,000 (Recommended budget for replacing equipment and furniture every 10 years and to avoid assessments)
Management Fee 21% of non-owner rentals deducted from rental revenue paid by guest
Liability and property Insurance covered by management
Total estimated expenses $60,680
Conservative income estimate of $150,000 with 50% owner occupancy and 50% rentals would produce an income of $5,925.00 or $2,891 net income per 5% ownership after all expenses paid. This is only an estimate and no guarantee of income is implied, only assumed based on actual current income. See Occupancy Dashboard as of Aug 13, 2017 below.
30% ownership ($630,000) based on 2017 income would produce annual income of $35,550.
#1. Limited risk through shared ownership
#2. No expenses through proper management of available dates (10-12 weeks rental covers all expenses listed above)
#3. Limited number of owners, and all owners having the same or similar goals
#4. Hard Asset that you own and can be liquidated
#5. Any owner wishing to liquidate must give other owners first right of refusal.