Suppose you are considering buying an investment property and turning it into a short-term rental in the Florida Keys. In that case, you have plenty of options, and there are few (if any) better than choosing to invest in a vacation rental in the Florida Keys.
Short-term rental income generates passive income that will help you establish long-term generational wealth and the foundation of a valuable asset.
With cutting-edge short-term rental data intelligence powered by STR Verifi that supplies users with unrivaled market insights to forecast and measure rental revenue, seasonality, average daily rates, occupancy rates, and market analysis, we empower investors to identify viable properties with complete confidence. Whether you are interested in turning a property into a long-term or a short-term rental, STR Verifi in conjunction with a DSCR interest-only jumbo loan from a premier lender like mbanc has transformed the investment property purchase into a low-risk, data-driven decision.
A Vacation Rental in the Florida Keys: About The Property
To understand the value of short-term rental data intelligence powered by STR Verifi, let’s examine this 4-bedroom (which only 18% of properties in the market have), 3-bathroom, 2,256 sq. foot vacation rental in the Florida Keys.
Built in 1972, this renovated, ground-level beauty is on the water with an indoor heated pool and has an indoor play area, a wood dock, a patio area with a pavilion, a fish cleaning station, fencing, skylights, a 25 ft. boat dock, canal views, oversize driveway parking for 4, side access for boat trailer, stainless steel appliances, a waterfront view, and central cooling.
On top of that, this property has 4 parking spaces for guests. This property is also just a stone’s throw away from excellent leisure destinations, restaurants, and aquariums, and it’s a short drive from Sombrero Beach and easy boat access to the famous Vaca Cut. All this creates an incomparably lucrative investment gem.
Without further ado, let’s get into how rental data intelligence powered by STR Verifi can forecast revenue and mitigate risk for an investment property purchase, shall we?
STR Verifi in Action: A Vacation Rental in the Florida Keys
Mbanc closed this property for $1,050,000 at the height of the real estate market in 2021 with a DSCR interest-only jumbo mortgage. This property today is now worth $1,600,000.
With a standard 30-year interest-only jumbo loan, the monthly payment on this vacation rental in the Florida Keys, is $3,573 monthly ($42,876 annually), including interest, property tax, and homeowner’s insurance.
The monthly payment may seem steep, but the short-term rental revenue this property earns is nearly four times the monthly interest-only payment. Let’s look at how short-term rental data intelligence powered by STR Verifi offers AI-driven insights into earnings potential and short-term rental pricing accuracy.
STR Verifi data intelligence identifies the Marathon short-term rental market as an “A Market Grade”. With stellar scores in rental demand (88) and seasonality (85) and rewarding daily rates, this region in the Florida Keys is a thriving market.
In addition to these metrics, STR Verifi displays a list of comparable properties to establish benchmarks, provides a list of property managers in the Marathon area, and a 365-day seasonality occupancy guide.
STR Verifi data displays the best average daily rate that the property will earn $526 per day, meaning tenants are only needed for 14 days out of the month to cover the monthly mortgage payment. But that only tells a part of the story. The occupancy rate for the property is 84%, meaning this advantageous property is booked 26 days per month, minimum.
Let’s talk about passive income. On average, STR rental revenue is $13,676 monthly ($164,112 annually), which is four times the interest-only mortgage payment.
More importantly, STR Verifi shows that the average monthly revenue for this property is approximately $8,196, positioning the short-term rental revenue well above the Marathon market average. On top of the fruitful cash flow, the best part about this vacation rental in Marathon, Florida, is the equity gain.
STR Verifi also forecasts operating costs, which come out to approximately $52,000 annually. That means, at the end of the year, gross earnings total $69,236 in passive income. Coupled with a 52% equity increase in just over 2 years, the Florida Keys is an investor’s ideal market.
Over the life of the mortgage, this property will have generated over 2 million dollars. More importantly, however, graphs indicate that the ROI will only increase as the rental growth has skyrocketed year-over-year since 2014.
On top of that, graphs also illustrate that this property has experienced a 12.33% year-over-year growth rate in short-term rental profit. In other words, the pristine blue Florida sky is your limit with this investment property.
However, our tool also shows that this vacation rental in the Florida Keys, can still be a viable long-term rental investment and earn $9,207 ($110,484), which offers a great investment alternative that’s low-risk and provides a fixed cash flow.
Learn More About STR Verifi And Short-Term Rental Revenue From a Vacation Rental in the Florida Keys
Purchasing a short-term rental in the Florida Keys can help you build wealth that will span generations. More importantly, it enables you to build the life you want, which is central to the American Dream. Investing in a vacation rental in Marathon, Florida, using an interest-only jumbo loan and cutting-edge short-term rental data intelligence like STR Verifi to forecast and guarantee short-term rental revenue empowers you to make this dream a reality.
To learn more about our rental data analysis and to work with the premier lender for people who want to live and succeed on their terms, talk to our team today.