Tags |
|
|
Links |
|
|
Casual Articles - Calculating Returns on Condo Hotels
Company with excess cash flow has two options to return the money to shareholders. One is to give out dividends. The other one is to initiate a stock buyback program.Stock buyback is a program where a company use its cash to buy back its own stock at an open market. The purpose is to re
With Condo Hotel you are purchasing Real Estate, NOT Re
Hi Steve, Thanks for taking time from your busy schedule!1-Would you tell our readers what your company does?Well Enhancement Services increases production by creating horizontal laterals in oil and gas wells. Our laterals extend from the wellbore out 300 ft into the producing fo
The SEC regulates/restricts any forward looking statements made by the condo hotel industry. It is important for you to do your own research. This is an attempt to help you begin this task, but this should be a starting point, not an end. Our concern is that our borrowers know clearly what they are buying, and can afford the monthly payments should there be NO rental income.
Hassle-free rental income as an offset to ownership expense is the an advantage to condo hotel vs a traditional condo. If you must hire a management company for your traditional condo, and are limited to weekly rentals (which should generate less on a per night use than nightly rentals) your net rental income should be higher for a condo hotel, with less hassle on your part. Your time and money invested has a value that should be used in your determination of the value of your purchase. Services and amenities are also important, both add an expense of ownership, and a benefit for rental potential.
The Math: Consumer
Since most people don’t use a second home more than 30 days per year; a cottage or a condo hotel unit is likely vacant for 330 days/yr. IF we Assume a hotel runs a 65% occupancy = 214 of potential rentable days.
IF the Average Daily Rate (ADR) is $175/night = $37,537 year in potential gross revenue. ($175x214=$37,537)
Many condo hotel Rental Management Agreements (RMA) pay a 41-50% split with hotel management. Assuming this, your income could be $1,370/mo before your expenses of Debt Service, Taxes, Insurance, Dues. At current market rates, $1370/mo supports roughly a $250,000 loan (before taxes, dues, insurance). Numerous assumptions have been made in this example. Hotels traditionally have seasons, and regularly require maintenance and improvement.
With Condo Hotel you are purchasing Real Estate, NOT Rev
The one thing that bugs me most about our industry is those dream stealers. Those are the people that give you all the reasons why you should NOT do something, or tell you all the reasons WHY it won't work, yet they have never succeeded at anything themselves.Don't let any one or anyth
Hassle-free rental income as an offset to ownership expense is the an advantage to condo hotel vs a traditional condo. If you must hire a management company for your traditional condo, and are limited to weekly rentals (which should generate less on a per night use than nightly rentals) your net rental income should be higher for a condo hotel, with less hassle on your part. Your time and money invested has a value that should be used in your determination of the value of your purchase. Services and amenities are also important, both add an expense of ownership, and a benefit for rental potential.
The Math: Consumer
Since most people don’t use a second home more than 30 days per year; a cottage or a condo hotel unit is likely vacant for 330 days/yr. IF we Assume a hotel runs a 65% occupancy = 214 of potential rentable days.
IF the Average Daily Rate (ADR) is $175/night = $37,537 year in potential gross revenue. ($175x214=$37,537)
Many condo hotel Rental Management Agreements (RMA) pay a 41-50% split with hotel management. Assuming this, your income could be $1,370/mo before your expenses of Debt Service, Taxes, Insurance, Dues. At current market rates, $1370/mo supports roughly a $250,000 loan (before taxes, dues, insurance). Numerous assumptions have been made in this example. Hotels traditionally have seasons, and regularly require maintenance and improvement.
With Condo Hotel you are purchasing Real Estate, NOT Re
If you're a recent college graduate, or in between jobs, temporary health insurance may be just what you are looking for. As the name suggests, this short term health plan covers from one month up to a full year. And with a very inexpensive price tag, most consumers are thrilled to have finall
The Math: Consumer
Since most people don’t use a second home more than 30 days per year; a cottage or a condo hotel unit is likely vacant for 330 days/yr. IF we Assume a hotel runs a 65% occupancy = 214 of potential rentable days.
IF the Average Daily Rate (ADR) is $175/night = $37,537 year in potential gross revenue. ($175x214=$37,537)
Many condo hotel Rental Management Agreements (RMA) pay a 41-50% split with hotel management. Assuming this, your income could be $1,370/mo before your expenses of Debt Service, Taxes, Insurance, Dues. At current market rates, $1370/mo supports roughly a $250,000 loan (before taxes, dues, insurance). Numerous assumptions have been made in this example. Hotels traditionally have seasons, and regularly require maintenance and improvement.
With Condo Hotel you are purchasing Real Estate, NOT Re
Family Travel Insurance Packages often provide savings to families helping them avoid high premiums and cost on single plans per individual. The family package includes children and both spouses. If the family has an ‘extended’ family, then the company will offer the “Extended Family” policies
Many condo hotel Rental Management Agreements (RMA) pay a 41-50% split with hotel management. Assuming this, your income could be $1,370/mo before your expenses of Debt Service, Taxes, Insurance, Dues. At current market rates, $1370/mo supports roughly a $250,000 loan (before taxes, dues, insurance). Numerous assumptions have been made in this example. Hotels traditionally have seasons, and regularly require maintenance and improvement.
With Condo Hotel you are purchasing Real Estate, NOT Re
The need to advertise on the Internet has produced some interesting advertising sites that promise free traffic to your website. The general idea is that you submit your site and in exchange for traffic, you open your web browser to a specified page and view other websites. There is usually a
With Condo Hotel you are purchasing Real Estate, NOT Revenue.
Tax Benefits, Potential Appreciation, and Hassle Free Use are other benefits of this form of real estate ownership, but every purchaser should consult their financial advisors.
If living in a luxury hotel, dining out, with turn-down and maid service is your idea of first-class vacation living... and you don't want to pay for your second home while you back home then you are a candidate for Condo Hotel ownership.
HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.casualarticles.com/article/134833/casualarticles-Calculating-Returns-on-Condo-Hotels.html">Calculating Returns on Condo Hotels</a>
BB link (for phorums):
[url=http://www.casualarticles.com/article/134833/casualarticles-Calculating-Returns-on-Condo-Hotels.html]Calculating Returns on Condo Hotels[/url]
Related Articles:
Why Use Thermal Binding Instead of Comb or Coil Binding?
Term Life Insurance: The Differences Between Term and Whole Life Policies
When Do You Need to Hire a Personal Injury Lawyer?
Bookmark it:
|