Cabin for investment and Seasonal Rental Research the pros and cons of buying a cabin for Investment and Seasonal Rental. Create a list that demonstrates the
pros and cons. Read at least three articles and cite your resources,
You can buy a cabin up to the amount of 150,000 (not to exceed. You must put down 20% plus closing cost for the
loan which will be $3200. You will be able to secure a loan at 5% over 30 years. Find your cabin and location. Where is
it? What are the closest towns, how many bedrooms, bathrooms, does it have running water, electricity or generator.
Perform the calculations for your monthly payment? Your insurance will cost you 900 per year and your tax will be 1200
per year. These two cost must be added to your monthly payment. Since the insurance and tax are based on a year
you must divide by 12 to find the amount you will add to the cost of your monthly payment
You will be able to rent it out for 3 months out of the year. Decide how much you will rent it for? What are the cost of
renting out your cabin? (Advertising, cleaning, supplies, etc.),
Do you think you might consider purchasing a cabin for an investment in your future? Why or why not? Where else
might you invest your money? Will the return on your investment be greater purchasing a cabin or investing in other
tools such as mutual funds/stocks?
Create a flyer to advertise your cabin based on the amenities it offers and the fee you will charge for renting it out per
day, per week, per month...you decided. Do you require a minimum amount of days the guest must stay? Remember
you will have cleaning cost so think about your terms. Do you allow pets? Is there a pet deposit feo? Cleaning deposit
fee?
The goal is to make a sound investment and have other people pay for it.
On a separate sheet of paper you will list your pros and cons and provide the required calculations. Show how you
came up with your calculations.