About 205 W Main Street
Welcome to Steamboat Rock! Invest in “The Valley of Friendliness”. Take advantage of this business opportunity to purchase?? this turnkey home as a vacation rental. Below is a breakdown of basic annual expenses vs proposed annual rental income. This proposal will show a (ROI) or return on investment. Only pay 7% TOT or Transient Occupancy Tax!! 30 year loan - Paid off 2055 Purchase price - $180,000 Down payment - 20% - $36,000 Balance —------- $144,000 6.35% interest Monthly loan payment - $1079.35 Loan and home expense annual Loan payment - $1079.35 a month Property taxes - $1,177 annually Vacation rental insurance - $2,062 annually Electricity - Gas - $1,312 past 12 months Water - $840 annually Lawn mowing - $400 annually Snow removal - $200 estimated Misc expense - $1000 estimated Total home expenses annually = $19,943 With the lack of lodging in Steamboat Rock and in Hardin County. Some of the local vacation rentals have a very high rental rate. First factoring in 124 nights of rental income per calendar year. That's a 34% occupancy including the recognized holidays. Second I will double the midweek and weekend rentals to 214 nights including recognized holidays. Which would be at 58% occupancy. Midweek rental income Sunday - Thursday $149 per night 5 days midweek x 13 weeks = 65 nights x $149 = $9,749 per year Weekend rental income Friday - Saturday 199 per night 2 days a weekend x 13 weeks = 26 nights x $199 = $5,174 per year Holiday rental income 11 holidays = 33 nights = $8,400 Conservative rental income for 124 nights at 34% occupancy Total = $23,323 Double the Midweek and Weekend rental for a total of 214 nights annually. 58% occupancy Total = $38,246 Review 1. Here is your (ROI) or return on investment 124 nights at 34% occupancy! Conservative rental income for 124 nights at 34% occupancy Rental income for 124 nights per year = $23,323 Total home expenses annually = $19,943 $23,323 income - $19,943 expenses = $3,380 profit annually! 2. Here is your (ROI) or return on investment for 214 nights at 58% occupancy! Moderate rental income for 214 nights per year = $38,246 Total home expenses annually = $19,943 $38,246 income - $19,943 expenses = $18,303 profit annually! I hope you like this (ROI) or return on investment. There are a lot of tax write offs not mentioned, no depreciation value of home was factored in. Along with no (TOT) ot Transient Occupancy Tax. This should be a good start for any serious investor. Below is the holiday rate and night chart used to factor in this (ROI). Holiday rates and nights chart New Year's Day (January 1) - 3 nights minimum - $300 per night. Martin Luther King, Jr. Day (third Monday in January) - 3 nights minimum - $250 per night. President's Day (third Monday in February) - 3 nights minimum - $250 per night. Memorial Day (last Monday in May) - 3 nights minimum - $250 per night. Juneteenth (June 19) - 3 nights minimum - $200 per night. Independence Day (July 4) - 3 nights minimum - $300 per night. Labor Day (first Monday in September) - 3 nights minimum - $250 per night. Columbus Day (second Monday in October) - 3 nights minimum - $200 per night. Veterans Day (November 11) - 3 nights minimum - $200 per night. Thanksgiving Day (fourth Thursday in November) - 3 nights minimum - $300 per night. Christmas Day (December 25) - 3 nights minimum - $300 per night.
