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Developing Rental Projections for Your Outer Banks Vacation Home Your vacation home’s rental projections are based on the gross rental revenue generated by other homes of comparable size, features, and location. Specifically, annual gross rental income, number of weeks rented, expected management fees, and operating expenses are then factored in for a net income. A qualified Rental Agent can help you identify potential revenue and expenses for your home. Your Real Estate professional can also help advise you on the ways in which you can use rental projections to your advantage when applying for a mortgage. Many Outer Banks brokers and lenders will ask you for projected rental income and expense statements to help qualify you for a mortgage loan if you meet predetermined criteria (ask your mortgage lender for pre-ownership requirements). The exception is if you qualify for a “jumbo mortgage” (over $300,000). Personal income or rental projections may not be required by the lending institution for this type of loan. We think is beneficial for all prospective vacation home owners to engage in this exercise, regardless of your loan arrangement. |
