Breakers Boutique 3 bedrooms cash flow with 100k down

Here is an estimated cash flow for a Breakers Boutique 3 bedroom. I made some assumptions with the purchase price and of course we would try to get that even lower. One of the reasons that these condos do above average rental income is because the condo is considered a “lock out” which means it can be rented as a 3 bedroom, efficiency or 2 bedroom. That’s good for you too in case part of the condo is rented you could still come down with a smaller party and stay in part of it.
When we EVER get the economy rolling again you can expect this to give you some positive cash flow as in the past these have produced almost 60k in gross rents. You get 59% of the gross rents here.

This property is associated with the Breakers Group. The rental manager, The Brittain Group, has a stellar track record for producing some of the highest rental income on the beach and they also take less for their cut. The split is 60% to you and 40% to them but I use 59% to you as they charge 1% for replacing items like coffee pots, glasses, silverware, TV remotes (they are taken almost half the time!?)

Income/Expense Comparison Breakers Boutique 3 Bedroom oceanfront


Purchase Price $220,000
Percent Down 45%
Term arm
6.25%
Down Payment $99,000
Mortgage Amount $121,000
Monthly Payment $745
Annual Payment $8,944

Est. Total Rents $48,000
Est 59% Rental Mg $28,320 *

Est. HOA Annual $1,318 $15,816
Est. Property Taxes $4,745 **
Est. Bldg. Insurance included
Est. Telephone $25 $300
Est. Content Ins. $0 ***
Annual Mortgage Payment $8,944
Total Expenses $29,805

Est. Pre-Tax Cash Profit/Loss -$1,485

*2009 rental income used from #1750-51-52
** 2009 property taxes used, should be lower in 2010 due to reassessments. Est. $3,300 for 2010
*** HO6 insurance (contents, liability) is included in monthly HOA payment



Here is a link to some properties that have the same floor plan. You will notice that they all seem practically identical as the floor plans are the same and since these came furnished by the developer originally the furniture is almost all the same. It can usually take about 7 years from new to change out all of the furnishings and bedding. It doesn’t happen all at once but when the developer/rental manager notices that the couches are looking worn, they contact you to suggest that you replace it. Even though you could replace it yourself, the rental manager usually gets a much better price since they are ordering multiple couches. Plus, you don’t have to do anything except OK the order.

Click Here to View Listings: http://CCAR.fnismls.com/publink/default.aspx?GUID=499a625e-4b14-45f2-962f-4eb84584ab61&Report=Yes

Once you deduct mortgage interest expense and accumulated depreciation you should find that the condo cash flows. You could expect better numbers when the economy improves. I have been told that we are still seeing lots of people coming to the beach but all of the ocean front condos and hotels had reduced their rates in the last year or so to attract the weary/broke vacationer. I understand that rental rates are starting to creep back up this year.

If the link to properties no longer works, please visit my website or send me an email and I'll send you an updated list. The links to MLS properties only stays live for about 30 days and if you are reading this post any later you will want an update on these condos.

http://myrtlebeachdreaming.com/