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.

But, before we get into the numbers…. you might spend a few minutes on Homeaway and see what 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 $110,000 house with 20% down payment, 30 year mortgage at the going rate.

Based upon home is in a typical community with maintenance

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. Please talk to your accountant about this and whatever else you may be able to deduct.

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

Typical Pro Forma For a Rental Property in the Poconos

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