Maximizing Returns: Income Potential from Our Big Bear Cabins
In our previous post, "Crafting Tranquility: The Art and Economics Behind Our Big Bear Cabins", we detailed the journey from concept to completion, highlighting the financial investment in creating a perfect getaway. Today, we’re diving deeper into the income model, exploring how much you can earn from such a beautiful investment.
Recap of the Initial Investment: To recap, here's a breakdown of the costs involved in bringing one of our Big Bear cabins to life:
Land: $200,000
Construction: $265,000
Furnishings: $20,000
Total Investment: $485,000
We discussed that you would need approximately $150,000 in cash to close, with a monthly mortgage payment around $3,500. Now, let's see what kind of income you can expect once the cabin is up and running.
Income Potential- What to Expect: Once your cabin is fully operational, there is an initial ramp-up period of 3-6 months while you start getting bookings and reviews. After this period, your income can look like this:
Fully Operating Income:
Average Price per Night: $350
Nights Booked per Month: 24
Total Income per Month: $8,400
Expenses Breakdown: Operating a vacation rental comes with several expenses. Here’s a detailed breakdown:
Utilities: $600 per month
Cleaning: Charged on top of the nightly fee (not accounted for here)
PITI (Principal, Interest, Taxes, Insurance): $3,500 per month
Property Management: $2,520 per month (30% of total income)
Total Monthly Expenses: $4,100
Net Income: After accounting for expenses, your net income will be:
Without Property Management: $4,300 per month
With Property Management: $1,780 per month (14% annual ROI)
Enjoy the Perks: The best part of investing in a Big Bear cabin? You get to enjoy your cabin anytime you want, while others help you pay for it. It’s not just an investment; it’s a personal retreat and a source of passive income.
Investing in a vacation rental like our Big Bear cabins can be a rewarding venture both financially and personally. With the right management and a bit of patience, you can see substantial returns while also having a beautiful retreat to enjoy with your family and friends. If you're ready to explore your own weekend escape and want a turn-key partner, Castro Residential is here to help. Click below to schedule your discovery call with us today!