OCEAN RESIDENCES RENTAL OVERVIEW
This example of rental income does not purport to contain all the information that a prospective buyer may desire. Neither Querencia Real Estate or any of their employees or agents make any representation or warranty, expressed or implied of any kind or nature, written, oral or otherwise as to the accuracy or completeness of this document, including but not limited to its financial projections, return of investments, market value, cost and income estimates, merchantability, fitness for a particular purpose or any other, and no legal liability is assumed or shall be implied with respect thereto.
HYPOTHETICAL UNIT SALE PRICE: $2,650,000 Expected Net Annual Proceedings*
OCCUPANCY RATE Avg. Rate per Night
20%
30%
40%
50%
60%
$2,000
$46,100
$97,200
$148,300
$199,400
$250,500
$2,500
$71,650
$135,525
$199,400
$263,275
$327,150
$3,000
$97,200
$173,850
$250,500
$327,150
$403,800
$3,500
$122,750
$212,175
$301,600
$391,025
$480,450
$4,000
$148,300
$250,500
$352,700
$454,900
$557,100
Please note that occupancy may vary based on the season.
Expected Net Cap Rate* OCCUPANCY RATE Avg. Rate per Night
Estimates of Annual Expenses
20%
30%
40%
50%
60%
$2,000
1.7%
3.7%
5.6%
7.5%
9.5%
Annual HOAs
$18,000
$2,500
2.7%
5.1%
7.5%
9.9%
12.3%
Annual Electricity/Water/Property Taxes
$19,500
$3,000
3.7%
6.6%
9.5%
12.3%
15.2%
Querencia Property Management
$9,000
$3,500
4.6%
8.0%
11.4%
14.8%
18.1%
Cleaning & Maintenance
$9,600
$4,000
5.6%
9.5%
13.3%
17.2%
21.0%
Total
$56,100
Assumptions Over Base Case Cap Rate and Expected Proceedings BASE CASE CAP RATE AND EXPECTED PPROCEEDS Ocean Residences 3 Bedroom Unit
Sale Price
Average Rent per Day
$2,650,000
$2,500
Average Annual Occupancy Rate 40%
Expected Annual Rental Income $365,000
Gross Cap Rate 13.8%
Annual Expected Recurring Expenses
Querencia Rental Management Fee - 30%
$56,100
$109,500
Expected Annual Net Proceeds to Owner* $199,400
Net Cap Rate for Owner 7.5%
Owners Cash Flow (Base Case)
Unit Acquisition
Year 1
Year 2
-$1,722,500
-$927,500
Net Proceeds for Owner from Rentals*
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
$199,400
$199,400
$199,400
$199,400
$199,400
$199,400
$199,400
$199,400
Total
-$1,722,500
-$927,500
$199,400
$199,400
$199,400
$199,400
$199,400
$199,400
$199,400
$199,400
Accumulated
-$1,722,500
-$2,650,000
-$2,450,600
-$2,251,200
-$2,051,800
-$1,852,400
-$1,653,000
-$1,453,600
-$1,254,200
-$1,054,800
*After Unit Expenses and Querencia Rental Management Fees (30% of Annual Rental Income). 3-8-2021
QCabo.com Info@QCabo.com 1.833.507.2226 US | (52) 624.145.6615 MX @QCabo
3-8-2021