People will pay a premium to experience the luxury of waterfront property, which is why the natural beauty of a lakeside vacation rental offers an unequaled investment opportunity. Vrbo rental revenue creates passive income that will help you exponentially increase your wealth on your terms and live out your American dream.
Let’s examine a case study of a lakeside Vbro in North Carolina. Powered by STR Verifi, Mbanc was able to help our client, Daniel Storie, close a Short-term Rental DSCR cash out refinance with an interest-only jumbo loan. Daniel took advantage of record-low rates in 2021 and purchased the lakefront cottage for $1,900,000 as a future short-term rental investment. Daniel, came to Mbanc after he could not a find lending for his Short-term Rental DSCR cash out refinance. At mbanc, we’ve helped expert investors like Daniel for years who are looking for investment property solutions with fast, efficient financing that caters to those with unconventional cash flow.
Explore how short-term rental data intelligence, powered by STR Verifi forecasts and measures an ROI with unequaled market insights for short-term and long-term rentals.
A Lakeside Vacation Rental: About the Property
To understand the value a cutting-edge short-term rental calculator that STR Verifi offers in monthly & annual revenue forecasting, analyzing short-term market grades, occupancy rates, daily rate pricing and analyzing short-term rental income, let’s examine this 3-bedroom (which only 30% of properties in this market have), 3-bathroom lakeside vacation rental in Mooresville, NC.
This spell-binding property offers mesmerizing, unobstructed views of Lake Norman, which is a crucial consideration when buying an investment property because, as you’ll see, this amenity doubles the short-term rental revenue and value in comparison to properties without shoreline access.
With direct access to the waterfront with 500 feet of shoreline, this property is close to several activities that attract renters, like kayaking, paddle boarding, boating, rock climbing, and hiking along Tuscarora Trail. It is also a mere 3 miles from Trump National Golf Course.
This property also has a main living room with a fireplace, a great room, a sunroom, a covered porch with heating and cooling, a luxury dayroom with 180-degree lake views, a back deck, incomparable balcony views, and plenty of extra space in the basement area.
Powered by STR Verifi, Mbanc closed on this lakeside rental property for Daniel at $947,200 with a DSCR interest-only jumbo loan cash out refinance. Daniel used STR Verifi to mitigate risk, ensure rental income, and qualify for a DSCR short-term rental cash out refinance with ease. Ultimately, STR Verifi helped him make a more informed data driven decision.
So, without further ado, let’s dive into how a premier short-term rental profit calculator like STR Verifi can guarantee an ROI so you will be swimming in profits in your own private lake.
STR Verifi in Action: A Lakeside Vacation Rental
With a standard 30-year interest-only jumbo loan, the monthly mortgage payment on this lakeside vacation rental in Mooresville comes out to $7,163 monthly ($85,956 annually), including property tax, homeowner’s insurance, and more.
Now, that might seem steep, but the Vrbo rental revenue the property is earning will blow this number out of Lake Norman’s crystal clear water. Let’s look at how a short-term rental calculator like STR Verifi offers unequaled insights to measure projected ROI when buying an investment property.
STR Verifi reveals this lakeside Vrbo has a market grade of C+. That may not sound spectacular, but that’s only half the story. Because, in a middling market, a vacation rental calculator like STR Verifi helps you locate the best financial opportunities.
Leveraging STR Verifi, you can see that the daily rate for this property is $793, which is more than double the average market rate of $294. To cover the mortgage, you only need renters for approximately 9 days per month.
In addition, our innovative Airbnb profit calculator reveals that this property has an occupancy rate of 60%, so you can expect renters 18 days per month, meaning you will earn $14,274 monthly ($171,288 annually) from this lakeside vacation rental.
The monthly rental revenue will be more than double the mortgage payment, making cash flow one of the best parts of this investment. But what about amenities? The property amenities such as the 600 feet of direct shoreline access, open water views, lakefront seating areas and lake leisure activities (ideal for family tranquil outdoor activities) increase the STR value in the subject market area.
The STR Verifi financial calculator details property management costs and fees that roughly total $31,182 annually. Including the interest only jumbo payment, total expenses for this property total $117,138. That means annual passive income for this lakefront Vrbo property total $54,150. Over the life of the mortgage (30 years), this property can potentially earn $16,245,500. And who doesn’t want to be a millionaire?
Just as importantly, STR Verifi provides short-term rental data intelligence illustrating that the year-over-year revenue growth for this market has been soaring, with 8.8% YoY growth since 2014, so this is just the beginning of what you can earn.
Plus, for investors interested in buying rental property for long-term rental solutions, STR Verifi also shows that this lakeside vacation rental is a viable long-term rental property that will earn $7,200 monthly ($84,400) while minimizing occupancy risk and providing a fixed cash flow.
Learn More About STR Verifi And How Mbanc Can Maximize Your Real Estate Portfolio Cashflow
Buying an investment property on a lake can help you build wealth that will span generations and create the life you want, which is the culmination of the American Dream. Investing in a lakeside vacation rental with the help of an interest-only jumbo loan from one of the best mortgage lenders like Mbanc and a cutting-edge short-term rental calculator that forecasts and secures passive income that empowers you to turn this dream into a reality.
To learn more about STR Verifi, and to work with the premier lender for people who want to live and succeed on their terms, contact us today.