Vacation Rental Income Goals

Step 1

Ok, so you love visiting Anna Maria Island and wondering if a vacation rental property would make a good investment?

It for sure does for the right vacation rental buyer but it might not be perfect for everyone. If you can work through our information steps we promise by the end of this you will have a better idea if you should pursue looking for an Anna Maria Island Vacation rental as an investment.

Most Anna Maria Island property does NOT cover operational costs AND debt service *. Of course it depends on how much you plan to put down on your Anna Maria Island Vacation rental. 50% loan to value * and life is likely good. The Anna Maria Island vacation rental will cover debt service and your monthly operating costs.

Here are a few good financial indicators to determine if you can move on to the next step.

1) Can you plan to deposit 20-30% of the purchase price of your Anna Maria Island Vacation Rental?
If your answer is NO we suggest you move on to other investments.
2) Can you absorb paying $1,000 - $2,000 per month on your Anna Maria Island Vacation Rental?
If your answer is NO we suggest you move on to other investments.
3) Is your budget for a condo at least $350,000? If looking for a single family property that budget is closer to $550,000?
If your answer is NO we suggest you move on to other investments.

So far so Good?

Yes? Time to move on to the next step. Click below or to return to our "Buy an Anna Maria Island Vacation Rental home page."

* Definitions:

Debt Service : This is essentially your mortgage or note from the bank to purchase the property. A fancy term for mortgage however more appropriate in this circumstance.

Loan to Value : Loan to value is otherwise known as LTV. It is essentially the amount of money you plan to put down on the purchase of your Anna Maria Island Vacation Rental. A vacation rental is inherently a second home and most banks require at least 20% LTV. For example if you are purchasing an Anna Maria Island Vacation rental for $1,000,000 then you should plan to at least pay $200,000 towards the purchase at time of closing. The bank needs normally at least 20% LTV because if the buyer defaults on the mortgage or note then they have enough equity to sell the home and break even. Purchasing a home you live in requires a less intense LTV because most individuals are passionate about not becoming homeless and more incentive to pay the mortgage each month.

NOTE: Please note there are inherent risks in purchasing any real property. Any investment taken has risks involved and critical to review worst case scenarios to ensure the investment over time will meet your financial goals as well as not break the bank!