YOUR ASSUMPTIONS. VISIBLE MATH.
Picture the weekends.
Price the ownership.
Build a scenario for one home. Change the inputs to test the cost of owning it—with or without rental income.
The starting numbers are hypothetical examples, not a market forecast or lender quote. No appreciation, tax benefit or rental income is guaranteed.
What is included?
Cash to start = down payment + closing costs + setup work + initial reserve. Annual carrying cost = principal and interest + annual fixed costs + maintenance allowance. The reserve is cash set aside, not a second annual expense.
Rental contribution = nightly rate × paid nights × (1 − variable-cost percentage). Annual cash surplus or shortfall = contribution − annual carrying cost. Break-even nights are rounded up; if they exceed days available after personal use, the scenario cannot break even at those assumptions.
Mortgage principal is a cash outflow here, even though paying it down can build equity. This is a before-income-tax cash worksheet, not cap rate, investment ROI or a full underwriting model. Add utilities, cleaning costs not passed to guests, licensing and other costs to the appropriate input. Acquisition financing fees belong in closing costs. Owner-use nights reduce availability but do not carry an imputed rental value. No sale proceeds, appreciation or income-tax effects are modeled.
Before relying on rental income, confirm the intended use is lawful for the exact property and obtain supportable property-level rates, seasonality and cost quotes. Read the comparison method ↗