The cottage is booking up for the summer. May and June are almost full, and July is starting to fill. So far, this first season has been a success with only a few minor issues. Here is a quick rundown.
Income
Total income so far is just over $7000. If bookings stay constant, then we should do around $10,000 this season. I’m calling that a success. Of course, not all that money is going into our pockets. In fact, none of it will be. Most of it will be going back into the property for upgrades, and the rest will be going into savings in case of unforeseen expenses.
After all upgrades are completed, and once we have an emergency fund dedicated to the cottage fully funded, then any proceeds will be going towards a down payment on a second rental.
I foresee us continuing to use the income from the rentals to upgrade them and purchase more of them. The plan is to continue to do so as long as we are both working our W2 jobs.
Expenses
Besides the mortgage, other expenses so far have included a new deck, paint, window treatments, fans and lighting, and some minor repair costs.
A few things have gotten broken by guests, but that is just part of short-term rentals. It was hard to mentally deal with at first, but a lot of traffic in and out of a property definitely means things are going to break faster than normal. If you are thinking about jumping into the vacation rental game, then just be prepared to have things fixed and replaced on a regular basis.
Moving Forward
The cottage is booking up. We are looking forward to the rest of this season to see what our total take is. We’re learning a lot, and we continue to look for ways to outsource tasks, so that this doesn’t become a part time job.
Keep following along for more updates.
Read Also:
Our First Guests Have Stayed at Our Cottage
Last Chance to Work on the Rental Cottage
5 Questions To Ask Before Buying Your First Rental Property
Financing Basics for First-Time Rental Property Owners
Based in the Pittsburgh, PA area, Brian holds full-time employment as a Warehouse Manager for an electronics firm. Brian enjoys wealth building, investing, gardening and the great outdoors. Brian holds a B.A. in Environmental Studies from the University of Pittsburgh and an MBA from Robert Morris University.
