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Typical Pro Forma For a Rental Property in the Poconos

A Typical Pro Forma for an Investment / Rental Property in the Poconos - If you are considering purchasing a home in the Poconos to use for yourself and to rent out for income to cover the costs of ownership, here is what you can typically expect for income and expenses.

This is predicated upon a few things:

> The home must be in very good condition and furnished nicely.

> The home must be within 6 miles of a ski resort

> You must do the advertising and marketing, arrange for cleaning, have an avenue to charge credit cards, and manage the reservations yourself.

> Based upon $110,000 house with 20% downpayment, 30 year mortgage at the going rate.

> Based upon home is in a typical community with maintenance

{Poconos}

Expenses: Rent out yourself VRBO AirBandB etc.

Taxes .........................................................$ 5,000

Comm Maintenance ....................................$ 3,856

Electric .......................................................$ 3,000

cable/Internet .............................................$ 1,200

misc. maintenance ......................................$ 800

Mortgage ....................................................$4,992 88K 3.9% 30 years

marketing costs.......................................... $1,100 Credit card fees/advertising

Cleaning ...............................24 x 85.......... $2,040

Total ........................................................$ 21,988

______________________________________________________________________________________

Income average 5 bedrooms:

summer 8 weeks @ 1500 week................... $12,000 -- Conservative - What smaller homes get

spring and fall 8 weekends@500 ............. ...$ 4,000

Winter 8 weekends @ average 1200 week ....$ 9,600 -- Season is average 14 weeks but you'll use it & some vac.

Depreciation - Tax Savings ..........................,,,.$ 820 -- 90K / 27.5 x 25% tax bracket

Potential Conservative estimate..............,,,,,. $25,600

Typical gross profit no rental agency fee.... .... $3,600

If rented by agency between 15 & 35 % fee. So do not expect a net profit if an agency is involved in renting the home for you.

 

I am not an accountant, this is a typical scenario so please talk to your accountant about this and whatever else you may be able to deduct.

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The information on this web site has been made available by the MLS through USA Realty - PA license RB066233 and may not be the listing of the provider. The data relating to real estate for sale on this web site includes listings held by MLS-IDX Participants of the Internet Data Exchange program of the Multiple Listing Service of the Pocono Mountains Association of Realtors. All listing data is the copyrighted property of the aforesaid Association and its MLS-IDX Participants with all rights reserved. It is not Guaranteed to be accurate.