$425,000
Avg. Purchase Price
$215
Avg. Nightly Rate
52%
Avg. Occupancy
beach
Market Type
Gulf Shores offers affordable beachfront investment compared to Florida. The Alabama Gulf Coast attracts families and is a popular drive-to destination from the Southeast.
Property Details
$
Total property acquisition cost
%
%
years
$
Average rate per night
%
Expected annual occupancy
$
Per turnover
nights
%
Airbnb/VRBO service fee (typically 3%)
$
Annual
$
Annual
$
Monthly average
$
Monthly
%
% of revenue
%
% of revenue (0 if self-managing)
Monthly Cash Flow
$145
$1,739 / year after all expenses
Viable Deal
Break-even at 50% occupancy
Cash-on-Cash
1.5%↓
Return on your cash invested
Cap Rate
6.4%↑
NOI / Purchase price
Break-Even
50%↑
Minimum occupancy needed
Turnovers/Year
64
190 nights occupied
Financial Summary
Annual Gross Revenue$50,407
Annual Expenses
Platform Fees$1,512
Property Tax$4,888
Insurance$1,700
Utilities$3,000
Maintenance Reserve$2,520
Cleaning Costs$9,600
Total Expenses$23,221
Net Operating Income$27,186
Annual Mortgage-$25,448
Annual Cash Flow$1,739
Your Investment
Down Payment$106,250
Est. Closing Costs (3%)$12,750
Total Cash Needed$119,000
Loan Amount$318,750
Monthly Mortgage (P&I)$2,121
Gulf Shores STR Market Highlights
- 1More affordable entry point than Florida beach markets
- 2Growing Hangout Music Festival brings premium weekends
- 3Family-friendly beach destination
- 4Less regulatory burden than competing beach markets
Seasonality in Gulf Shores
Summer (June-August) is peak with spring break also strong. Winter sees minimal demand.
Gulf Shores STR Regulations
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Frequently Asked Questions
Market averages are estimates for educational purposes only. See full disclaimer