No Brainer Property Investment on Anna Maria Island

Anna Maria Island single residential real estate even after our 2006-2007 correction appreciates at 10% year over year on average.  So if you can find an investment that pays for itself through vacation rentals, life is really good!  Right?

On Anna Maria island vacation rentals are extremely popular.  Anna Maria Island is located on the Gulf Coast of Florida Island Real Estate of Anna Maria Island logoand there are two buildings above 37′ and that is it…no more.  So no chain hotels which lends itself to an very good vacation rental market.  We have seven miles of Gulf Coast and about two miles of the Tampa Bay Coast and the island at its widest point is about 10 blocks.

Currently there is a 4-5 bedroom on the market for $425,000.  It’s  2 blocks to the Gulf which means it should rent fairly well.  There is no pool but a GOOD pool would cost $40k and furniture, fix up would be another $50k….so up front capital of $80k down, and $90k for pool etc…$325,000 mortgage should be about $2,000 per month, property taxes $6k/yr, insurances $5k/yr, op costs $500/month.  So, carry the one, hmm, hmm, yup if I did my math correctly $3400 expenses per month including DEBT expenses.

Now for gross income.  The gross income on similar properties would be at least $55k with an UPSIDE of $65k minus a commission of 20% for management.  Lets remain conservative, income AFTER commission = $44k.  Income per month ——-$3666 per month.  Ta Da!!!

So, expenses per month INCLUDING DEBT service = $3400
NET Income per month                                         = $3666

Lets just call it break even.

In summary, for $170k in capital you too can create a 10% deferred savings account of $1,100,000 that you can cash out in 10 years.  That’s almost 6.5 X your original investment of $170k!  Boy who doesn’t love Real Estate!!!

For more information on Anna Maria Island Real Estate visit www.IslandReal.com or our website.  For more information regarding the specific property listed in my blog visit 407 80th..if the link is broken the home has probably sold but give me a call or visit our web site for additional deals.

Of course there are always risks to investing.  Hurricanes, red tide, oil spills, recessions… of course all figures above are estimates however call or comment with more questions.  The analysis is NOT perfect but it is within 5-10% and in no way is this a commitment of rental income or appreciation.

 

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