How to Project Vacation Rental Income for Oceanfronts

Real Estate Agent with Ocean Views Real Estate, Inc.

Most your North Carolina oceanfronts for sale are here And in the listing or talking to an agent I heard that the property gets $60,000 of rental in the hot season. And I said, “Excuse me, you know it actually can be grossing a lot more than that do the sellers realize how much money they're losing?” And the owner – and the – the agent right away affirmed and agree with me and says, “Yes, it could be renting out 10 grand a week.” So let's look at – look at an example here, you go over to Kure Beach and you find a – a property here that sleeps 18, 6 bedroom, 4 bath. Well, the house we're looking at Kure Beach on that gets the 60 grand in rentals. It has 8 bedrooms and 6 baths, so this is a lower end property. I'm trying to find the main picture of it, gee whiz where’d it go? I didn't realize it was at the end of all the pictures here, sorry about that you guys. Oh brother okay, well anyway the point is it's got a pool, it's smaller, there you go and it's rented for 7,000 a week, okay? Multiply that times 10 and you're at 80. Multiply it plus some extra months you know and you're there like at 90,000 okay?

Kure Beach Oceanfront

Let's look at another one there. And here's what you can do, this one here for example it's an eight bedroom property oceanfront in Kure Beach and it's renting for 11,000 a week. You click on the – the dates available and then you see all this greyed out area that means it's booked up these weeks, okay? It's booked up a lot already. So that tells you that the property is fully booked and that it grosses times 10, you're at 120,000 plus some extra months and you're easily at 140,000 for example.

And it’s the same size as this property, only this one has a pool, okay? So this one could be grossing you know 140 grand, no problem, if it was rented out correctly by a property manager that knew the real value of the property. So that's how you find rental comps, you can find them either from the rental history. But sometimes the rental history in the MLS is bad because it's not being rented out to its full potential everybody. All right, more power to you talk to you soon. Jay Seville in Oceanfront Vacation Rentals, I'm the best buyer agent for them in the region, thanks.


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