The deal numbers
Straight from the client deal tracker: what it cost to get in, and what it returns.
The tracker records a $1,600,000 purchase for this client in this market. Those are the figures below. The property described above closed at $930,900.
- Purchase price$1,600,000
- Down payment$176,000
- Closing costs$9,390
- Design and furnishing$178,500
- Total entry cost$363,890
- Annual cash flow$58,244
- Cash-on-cash return23.23%
The tax position
- Purchase price$930,900
- Typical cost seg reclassification25% of price
- Illustrative year-one deduction$232,725
- Illustrative tax reduction at 40%$93,090
An illustration, not this client's return: 25% of price reclassified at a 40% marginal rate, the same assumptions as our calculator. Your number depends on your study, your rate, and meeting the seven day and material participation tests. We are not a CPA firm.
The full story
Branson West is the useful part of the Branson market for an investor, because it sits on Table Rock Lake while still being inside the catchment of Branson's entertainment corridor. That combination gives a property two independent demand drivers instead of one.
Dustin bought an eight-bedroom at $930,900. Table Rock is a large, clean, boating-oriented lake, and lakefront or lake-access properties with eight bedrooms serve exactly the multi-family summer trip that the market is built around.
The second driver is the entertainment corridor. Branson runs a heavy theater and show schedule, and it draws substantial motorcoach and church group traffic, particularly in the autumn. That produces a genuine second season in September and October when the lake demand has faded, which most pure lake markets in the Midwest do not have.
The Ozarks also carry a lower cost basis than comparable lake markets in Michigan, Wisconsin or the Northeast. Missouri property taxes are moderate, construction costs are low, and eight bedrooms for under a million dollars on a major recreational lake is not a price point available in most of the country.
Questions about this deal
What did Dustin's Branson West property cost?
An eight-bedroom purchased for $930,900 in Branson West, Missouri.
Why Branson West rather than Branson proper?
Branson West sits on Table Rock Lake while remaining inside the entertainment corridor catchment, which gives a property both summer lake demand and autumn show and group traffic.
How does the Ozarks cost basis compare with other lake markets?
Substantially lower. Eight bedrooms under a million dollars on a major recreational lake is not available in most Northeast or Great Lakes markets.
Related
- Short-term rental market analysis for Branson West
- Table Rock Lake and its second season
- Missouri short-term rental regulations
- Lake house investing guide
- David, Lake property in Hollister
- All client case studies
- The full deal tracker
- How the acquisition process works
- Financing a purchase like this
- The design and furnishing playbook
- The tax strategy behind these purchases