What an expensive year this has been. I for one can’t wait until the year is over. But, unfortunately, I can’t put the cart before the house. I have to suck it up and bear the cost of ownership. I hate starting off with bad news, but unfortunately, there are very few good news to report. Undoubtedly, this will not be a good report. Moreover, I don’t anticipate anymore good reports for the remainder of the year. But, no matter how painful things are, I will be transparent with my progress (or lack thereof). So, without further adieu, let’s see how Calypso Memories did during October 2023.
Vacation Rental Profit/Loss
Let’s see whether I made a profit or incurred a loss in October 2023 at Calypso Memories.
A. Vacation Rental Income
During the month of October, I earned $3444 in income broken down as follows:
As you can see, the amount of income I earned in October was relatively low. It was lower than September, but at least it was higher than August. Honestly, the relatively low income is to be somewhat expected. We are heading into the slow season and so it’s all about being in survival mode now.
In a good year, the income earned from the busy season should help shoulder the cost of the slow season. But this year was particularly rough given the amount of expenses I had to incur. For example, I had to replace an HVAC system, and that was an expense over $7000. Hopefully, every year won’t be like 2023.
B. Vacation Rental Expenses
During the month of October, I incurred $6446 in expenses broken down as follows:
Wow. My expenses just about doubled the income I earned in the same time period. Although there were a few unexpected expenses, those unexpected expenses amounted to less than $1000. However, in October, my HOA dues, which are paid quarterly, were due and hence the increased (but expected) expenses. It is what it is.
C. Profit/Loss Statement
Based on the fact that my expenses exceeded my income, my loss for October was $3001. What makes this year tough is that when I make a profit, it’s relatively small compared to when I incur a loss. For example, last month, my profit was $752, but my loss this month was $3001. Ouch!
As shown below, my year-to-date loss has increased to a WHOPPING $10,501.
With such an loss for the year, it shouldn’t be a surprise that I am struggling to make ends meet. So far this year, the condo hasn’t paid for itself, which means that I have to dip into my own personal funds to keep the condo a float.
What’s also important to note is that this is the October 2023 vacation rental report. We still have November and December to go. I fully expect that those months will also result in a loss. This means, my year-to-date loss amount will only get bigger. Heaven help me!
Annual Income and Expenses
2022 was my first year when my condo went live on the market, so let’s see how October 2023 at Calypso Memories stacks up against October 2022.
A. Annual Income
Here is the raw data:
As you can see, I earned less income this year than I did last year. This is just one example of the fact that my bookings have been down this year. I am hoping next year will be different, but we will see.
B. Annual Expenses
Let’s see how the annual expenses at Calypso Memories look from last year to this year.
Here is the raw data:
As you can see, I incurred 13.83% MORE expenses this year than I did last year. Of course, it could be worse.
I do anticipate that my expenses will be elevated over the next 6 months. As indicated in above, I’m trying to pay back an HVAC system that I bought and the payment I am making is $650 per month.
As explained in my September Part 2 Debt Payoff Report, I have one more payment on a $750 a month payment I am making. After that, I will be using the snowball method to payoff additional expenses associated with Calypso Memories.
In any case, my expenses are moving in the wrong direction (annually). This has turned out to be a very expensive year! I’m really hoping next year will be better, as I will concentrate on keeping my expenses low. Wish me luck.
Final Thoughts
Unfortunately, money is a bit tight right now. I have to make capital contributions to my Calypso Memories account just to pay the bills. The problem is that with no job, I am scraping every bit of cash I have to do so.
What’s more problematic is that I expect this financial drought to last for the next six months.
To the extent there are any good news, its that I don’t have to borrow money to do so (at least I am trying not to). I’ve already committed to not using my credit card over the next six months. It’s going to be really tough but I am taking things one month at a time.
The other thing I will mention is that A LOT of my expenses this year were in the preventative maintenance category. So, I am experiencing a world of financial hurt right now, but I don’t anticipate repeat expenses next year. The goal will be to minimize my expenses as much as possible, without sacrificing safety of course.
The struggle is real!
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