INVESTING IN A BEACH HOUSE AIRBNB

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This is a preliminary, back of envelope calculation at this point. Before actually purchasing a property, I would spend more time on due diligence by getting actual quotes lined up and determine the specifics.

What are the expenses?

Mortgage:

A mortgage payment for 80% of the value of the property at 4% interest is $2,712 a month, or $32k a year.

Property Taxes:

It is currently being taxed $3,400 on a $340,000 valuation. This is right at 1% of property value. The sale of $710,000 will likely cause the taxes to change to $7,100 a year.

Insurance:

Honestly, I am not sure what the insurance cost will be here. Zillow says $270 a month, I am going to say $350 to find a good policy that covers short term rental. $4,200 a year.

Maintainance:

The house does not have overly high-end finishes. It is in a coastal area which means it would experience a lot more weather on the exterior. I will call it $5,000  a year.

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