Bimini Bay Townhomes in Davenport, FL Provide Great Rental Yield

I've written quite a bit about the Bimini Bay Community in Davenport, FL. The risk versus reward can not be over stated. The community has been in termoil of late and the hoa is still not in great shape. But as an investor sometimes you have to weigh the risk versus the expected reward and make a judgement call. There aren't too many properties that are going to offer the kind of rental yield a Bimini Bay townhome will provide.

Homes For Sale In Bimini Bay Click Here.

Here is an estimated breakdown of the costs, rents (data from the MLS) and expenses compared with single family homes in Poinciana, FL. This estimate is assuming you are financing your purchase so the numbers could and probably will change but you get the idea.

Bimini Bay Townhomes

Monthly Rental Amount $1,200.00
Percent of Year Unoccupied 5%
Take out for Vacancy for Annual Cash In of $13,680.00

Property Acquisition Cost $70,000.00
Less Down Payment 10% - Cash In $7,000.00
Amount of the loan $63,000.00

Payment Monthly Pricipal/Interest (6%) $377.72 ($4,532.64 per year)
Annual Insurance Cost $1,200.00
Annual Taxes $1,400.00
HOA $1,800.00
Annual Repairs Budget $600.00
Percent of Rent Mgmt Fee of 8%
These expenses total to Annual Cash Out of $10,627.04

Income of $13,680.00 minus cost of $10,627.04 = $3,052.96 cash return over cash out
$3,052.96 divided by cash investment of $7,000 = Cash-on-cash Rental Yield of 43.6%

Single Family Home

Monthly Rental Amount $1,000.00
Percent of Year Unoccupied 5%
Take out for Vacancy for Annual Cash In of $11,400.00

Property Acquisition Cost $90,000.00
Less Down Payment 10% - Cash In $9,000.00
Amount of the loan $81,000.00

Payment Monthly Pricipal/Interest (6%) $485.64 (5,827.68)
Annual Insurance Cost $1,200.00
Annual Taxes $1,400.00
HOA $252.00
Annual Repairs Budget $600.00
Percent of Rent Mgmt Fee of 8%
These expenses total to Annual Cash Out of $10,191.68

Income of $11,400.00 minus cost of $10,191.68 = $1,208.32 cash return over cash out
$1,208.32 divided by cash investment of $9,000 = Cash-on-cash Rental Yield of 13.4%

After having compared the numbers you can see that the Bimini Bay properties will bring a much greater return on investment than a single family home. I think Bimini Bay makes a better investment in the short term and in the long term (appreciation) it will likely be the better investment due to the proximity to Disney World.

Bimini Bay Townhomes in Davenport, FL Provide Great Rental Yield