USA Realty
Rick Golden
USA Realty - Pocono Office

Typical Pro Forma For a Rental Property in the Poconos

by USA Realty - Pocono Office 570-517-2428


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.

But, before we get into the numbers…. you might spend a few minutes on booking.com and see what Pocono Vacation homes are renting for. (Feel free to go ahead and book one to try out the Poconos, if you like!)

Here is where you can find a Pocono Vacation Home to rent.

PoconosRealEstate.com connects travelers directly with vacation home owners and property managers. Thousands of travelers browse through our comprehensive Poconos Rental database to search  for vacation rental properties. As a result, our site is the ideal one for PoconosRealEstate. The place for renters and property owners and rental managers to connect online or though email. Be it lake vacation rentals or ski vacation rentals, vacation condos or houses, golf rentals or lakefront houses. PoconosRealEstate.com has them all.

The below proforma 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 home is in a typical community with maintenance (Includes direct to owner stays, 2023 - Personal stays of 11 days, 2024 Personal stays of 14 days, 2024 VRBO down for 29 days (PM other property issue)

                       2023            2024           Total   
Gross          $131,294       $123,380   $254,674
Net Payout   $ 80,123       $  73,042   $153,165
Mortgage      $ 39,120      $  39,120    $ 78,240
Prop Taxes     $  9,488      $  $9,488    $ 18,976
Insurance      $  2,137       $ $2,137     $  4,274
Electric/

Heat/Water/AC  $6,987         $7,194      $14,181
Wifi                  $1,829         $1,951        $3,780
Sewer               $1,663         $1,663       $3,326
STR Permit        $1,000         $1,000       $2,000
Road Fee           $   487         $   487       $  974
Propane             $  295          $   114      $   409
Misc Supplies M $1,256          $   489       $1,745

Total Expenses  $64,262       $63,643    $127,905
Cash Flow         $15,861       $  9,399    $  25,260
Mortgage Prin.   $16,402       $ 19,011   $  35,413
Net Income/Profit
(Cash +Equity)* $32,263       $28,410      $60,673

*(Net payout = money received by owner after PM paid taxes, platform fees, took out 15% management fee and for misc. repairs)
 
So, do not expect a net profit if an full service management agency is involved in renting the home for you.

I am not an accountant, this is a typical scenario for a smaller Poconos Chalet. Please talk to your accountant about this and whatever else you may be able to deduct.

Here is a list of the best rental homes currently available contact USA Realty 570-517-2428

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