I recently posted a dismal Vacation Rental report for Calypso Memories. I am really hopping that this is a much better report. In the Calypso Memories report, I posted a year-to-date loss of over $8000. Sufficed to say that the money in my bank accounts are dwindling and I barely have enough to cover one month’s expenses. Quite frankly, I have about 1.5 months of expenses in each account before I have to dip into my own funds to help keep the vacation rental condos afloat. Moreover, since I don’t have a job anymore, I don’t really have extra income coming in. So, it’s going to be VERY DIFFICULT to maintain a positive bank account balance for each property. That being said, I am still relatively young in my vacation rental journey as I’ve only been doing this for less than 2 years. I am hoping to improve my results over time. But, without further adieu, let’s see how Emerald’s Corner did in August 2023.
Vacation Rental Profit/Loss
Let’s see whether I made a profit or incurred a loss in August 2023 at Emerald’s Corner.
A. Vacation Rental Income
During the month of August, I earned $6118 in income broken down as follows:
this is a modest amount of income. Considering the fact that I only had one booking for Calypso Memories in August, I will take the win for Emerald’s Corner. That’s because I had a total of 4 bookings for Emerald’s Corner in August.
B. Vacation Rental Expenses
During the month of August, I incurred $11421 in expenses broken down as follows:
Wow, my expenses were super high in August. A bit of explanation is in order. For this property, my expenses will be high every month in part because of the mortgage payment. My mortgage payment (including taxes and insurance) is $5218 per month! Ouch.
Additionally, I incurred high maintenance cost in August. I did an electronic serge protector installation in the unit. I also installed a water heater expansion tank that was recommended.
In addition, I expect increased maintenance expenses in September as well. Woe is me!
C. Profit/Loss Statement
Based on the fact that my expenses exceeded my income, my loss for August was $5303. This is a significant loss and it wiped out the year-to-date profit I reported last month.
As shown below, my year-to-date loss is $2601.
Honestly, I am quite happy with the relatively small amount of loss I’ve incurred since April. It’s significantly less than the $8251 year-to-date loss that I reported for Calypso Memories. So, the goal right now is to see if I can somehow squeeze out a profit by year’s end.
The good news is that my calendar is booked solid for September and October. But, like I said, I also am expecting increased expenses in September (that are already on the books). So, it’s going to be tough, but only time will tell.
Annual Income and Expenses
This is my first year owning Emerald’s Corner. So, I don’t have any income or expenses to compare it to. This section will make a lot more sense come August 2024.
A. Annual Income
Here is the raw data:
Hopefully, the revenue will continue to be strong over the next several months.
B. Annual Expenses
Here is the raw data:
Again, this section will make a lot of sense in 2024 when I am able to make an annual comparison.
Final Thoughts
In a way, this was not a terrible report. Of course, in looking at just August, I had a dismal performance. I incurred a huge loss for the month in part because of my high expenses. But, I am a firm believer in preventative maintenance. A lot of the expenses I incurred in August and will occur in September are due to the preventative measures I’ve taken on the condo. I hope that by doing so, I will avoid huge expenses in the future, like having to replace an HVAC system for over $7000.
I am humbled by the fact that I’ve only incurred a year-to-date loss of $2601. Of course, I wish this was profit, but the loss could have been much worse. Given my booked calendar, there is a small chance I might even end the year with a profit, or even a small loss.
It is true that I don’t have much in the way of emergency funds. I feel like I am operating on life support and one big expense can just wipe me out. Recently, Florida was hit by Hurricane Idalia. Thankfully, Panama City Beach was spared and so none of my condos suffered any damage as a result of the storm. But, I am one hurricane away or potentially one bad guest away (who damages my unit) from financial crises.
Wish me luck. I hope to delay filing for bankruptcy as long as possible.
Finally, I will mention that these reports do not take into account the other pros of investing in real estate including the tax benefits and mortgage paydown, etc. But for now, I am just hoping that September will put me closer to being in positive territory again.
What did you think of this post? Let me know your thoughts by commenting below.
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