How to Estimate Vacation Rental Income
Abstract
What Is a Good ROI for Short Term Rental? When it comes to return on investment, the experts' opinions vary on what exactly is a good ROI for vacation rental properties. Annual Rental Expenses: Monthly rental expenses multiplied by 12 months, property taxes, and annual insurance. How Do You Calculate ROI on a Vacation Rental? Before you can even come up with an income estimate for your vacation rental property, you must first know how to calculate ROI. You will need the following information: Net Operating Income. How Do You Calculate Cash Flow on a Rental Property? As a rental property investor, what you really want to see is your vacation rental generating a positive cash flow year in and year out. Step 2: Calculate Your Monthly Revenue While on the pop-up window, you can calculate your monthly rental revenue based on rental comps and rental strategy. Mashvisor's Rental Comps feature allows investors to see comparable properties in a specific area or neighborhood and their respective occupancy rate, daily rates, and rental incomes. Rental Strategy The Rental Strategy tab will allow you to compute your potential income on your vacation rental property.
