Pro Forma Statements are a valuable tool to use to analyze a vacation home’s potential as an investment home. Here in Central Florida there are 1000’s of vacation homes. Some are excellent investment homes. Many are not. If prepared properly, pro forma statements will break down all income and expense numbers of a potential investment home and reveal the potential profit.
Each investment home’s pro forma statement will show the following:
- An estimate of the purchase price you will have to pay for the home
- An estimate of the closing costs
- An estimate of the costs of all renovations and/or upgrades needed to maximize the rental income of the home
- An estimate of the income you can expect from short term rentals of the investment home (based on the rental income of comparable homes in the same community)
- An estimate of all expenses including insurance, property taxes and mortgage payments (if applicable) – the expense numbers are based on the expenses of comparable homes in the same community
- A net annual cash flow projection after all expenses have been deducted including mortgage payments (if applicable)
Need help with creating a pro forma statement(s)?
Contact The Pro Agent Group. They are experts.
ChampionsGate Resort-Pro Forma Statements (password protected)
Reunion Resort-Pro Forma Statements (password protected)
Windsor At Westside-Pro Forma Statements (password protected)
Windsor Hills Resort-Pro Forma Statements (password protected)