Yes I don’t think it hurts to try it out vacation rental, especially because I’ll be closing a week or two before Independence Day and ComicCon.
Cap rate is probably awful, the gross monthly rent will probably be about equal to the mortgage payment, maybe $200 more. The annual rent will be about 6% of the purchase price.
I am buying more because I want to live there eventually when I need a bigger house, and because it is zoned for 4 units on a large-for-OB lot.
When I ran the numbers and included expected expenses, the return on my downpayment, mostly in the form of equity payments each month, will be about 4% the first year.
A W suite sound really aspirational, I will have to overcome my natural cheapskate nature, as my current house is full of curb finds, homemade furniture, craigslist and thrift store furniture. The only W I’ve stayed at was in San Francisco and it was exceptionally nice, sort of ultramodern and slightly Japanese.
