The spreadsheet below details the results of a single family home with three bedrooms and two bathrooms was converted to a Short Term Rental.  The purchase price was $130,000.  The cost to acquire the property, rehab and furnish was $56,000.  The property was put into service in late September 2021 in Gulfport Mississippi. The analysis looks at income from January through July 2022, seven months.  The income has been annualized along with expenses.  The anticipated 2022 gross income will be $33,500 (including cleanaing fees).  This represents essentially the first year of service.

Expenses include the following:

1. Mortgage principal and interest

2. Insurance & Property taxes

3. Water, sewer, trash

4. Electricity

5. Landscaping

6. Cable

7. Cleaning (included in gross income)

8. Accounting – CPA

9. Property management

10. Actual maintenance expended

The annual net to owners is $13,484 representing a 40.25% return on invested capital.

The Cash-on-Cash Return is 24.08%

The property is worth an estimated $197,000 showing appreciation of $67,000 or $11,000 in capital appreciation for the first year.

Can this type of investment be duplicated?  It was, the building next door was purchased and is generating similar numbers.  Properties purhased a couple of years earlier are continuing to grow in annual revenue as guests provide good comments.