Welcome to my first vacation rental report for Emerald’s Corner for 2024. This condo reported a massive loss in 2023 and I am really hoping for a better year in 2024. When I purchased the condo, I knew going in the condo wasn’t going to be able to support itself. Specifically, I knew that I had to contribute funds from my personal account to ensure that I meet all the expenses. Honestly, I fully anticipate that 2024 will be another year of me reporting a loss for the condo. In fact, I expect that to be the case until interest rates are low enough that allows me to refinance the property. That being said, I am focused on keeping my expenses low this year. That way, even if I report a loss, it’s less of a loss than I did in 2023. So, without further adieu, let’s see whether I was able to make a profit or a loss for Emerald’s Corner in January 2024.
Vacation Rental Profit/Loss
Let’s see whether I made a profit or incurred a loss in January 2024 at Emerald’s Corner.
A. Vacation Rental Income
During the month of January, I earned $0.00 in income broken down as follows:
A bit of explanation is in order. I do currently have snowbirds in the unit. However, they rented the unit from December to March. They already paid for their entire stay back in December. So, that income, because I received it in December, was reported in December. Accordingly, January to March 15, 2024, I will report zero income because it has already been accounted for.
Another option I had was to split it up by month, but that was more difficult. And, based on the accounting system I used, I chose to do it this way. It all evens out at the end.
B. Vacation Rental Expenses
During the month of January, I incurred $9729 in expenses broken down as follows:
Again, a bit of explanation is in order. The mortgage and HOA fees on this property is high. That’s about $6000. I also incurred one-time seasonal beach chair expenses in January. That, coupled with other routine expenses (albeit not recurring) brought the total up to $9729. I’m just glad the figure is under $10,000.
As you can see, my expenses are super high every month. I am hoping to keep them under $10,000. We will see.
C. Profit/Loss Statement
Based on the fact that my expenses exceeded my income, my loss for January was $9729.
As shown below, my year-to-date loss is $9729.
Honestly, because my income will be zero until March 15, and my typical expenses will be about $6000-8000, I’ll be starting the year at a massive loss! Woah is me.
Although I think I have the funds to weather this financial storm for 2024, I am more concerned about the slow season in 2025. So, while I hope the condo will earn enough in the busy season to cover this cost, I am not counting on it. So, to lesson the burden for the slow season, I’ve decided to start saving from now using my personal funds. I’ll probably have to start in February or March, but I won’t be waiting until the last minute. The condo should support itself at least during the busy season, so that helps.
At some point, I will have to make the difficult decision as to whether to keep or sell this unit. It is my pride and joy, but it’s hard to argue with the numbers. If I sold this unit, or refinance it, or get a job, A LOT of my financial stress would be over. Again, only time will tell.
Annual Income and Expenses
April 2023 was my first year owning at Emerald’s Corner, and May 2023 was the first time I was able to generate income. So, I don’t have any income or expenses to compare it to. This section will make a lot more sense come January 2025.
A. Annual Income
Let’s see how the annual income at Emerald’s Corner look from one year to the next.
Here is the raw data:
I doubt earning zero for the month this will change in future years based on my accounting practices, but you never know.
B. Annual Expenses
Let’s see how the annual expenses at Emerald’s Corner look from year to year.
Here is the raw data:
I’m just hoping that my 2025 expenses will be less than 2024.
Again, this section will make a lot of sense in 2025 when I am able to make an annual comparison.
Final Thoughts
Well, just going by the numbers, this is a dismal report. I’m starting the year with over $9000 in loss and that will likely occur in February and half of March. But, despite all this, I am optimistic. Even if I don’t make a profit for Emerald Isle, I am really trying to incur less of a loss than I did in 2023.
For what it’s worth, the massive loss in 2023 did NOT include January to March, because I only purchased the property in April. So, it’s going to be really tough to beat 2023 numbers. However, I will also be making an April to December (or more accurately a May to December) comparison to see how well I did.
Finally, I am waiting to see if interest rates will come down low enough for me to refinance the property which hopefully will help with that massive mortgage that I have to pay every month. The struggle is real, as the saying goes.
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