Quote:
Originally Posted by CoachKandSportsguy
This is why you don't take advice from random posters on TOTV. This statement is without context and therefore can be interpreted incorrectly.
Hotel tax is collected if you provide hotel services which is in and above just renting the property. It includes, food services and laundry services, as an example.
However, do your market research to figure out who will be your customers, and how do the financials look at 100% occupancy in Jan->Apr and then 50% in the remaining months.
From your original question, you aren't serious, as its very easy to search for rentals with google as if you were searching for a rental, to easily do a financial statement. All the competitive information is available on the internet, including bond costs, real estate taxes, insurance costs, location. etc. Rentals always come down to occupancy rates to figure out break even and return on investment.
We were not profitable in 2020 with 40% occupancy, and this year we are not profitable with 60-70% occupancy, without a mortgage, including depreciation, for ROI
finance guy
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I don't know why one would include depreciation in a financial ROI assessment. Depreciation is just a tax accounting tool. You recuperate depreciation when you sell the home. I have two 3/2 homes. From as cash flow perspective, Jan-Mar rental pays the mortgage. Two more months and I am cash flow positive, while the home sits and appreciates in value (as it always will over time). I use the homes when they are not rented, in 10 years, we will move to TV full time, so there is value there as well. The point is, rental properties work for certain people, with certain skills and resources, and for others, your money may be best placed elsewhere.