The deal numbers
Figures as recorded in the client deal tracker. The return basis and reporting period require confirmation.
- Purchase price$540,000
- Down payment$54,000
- Closing costs$22,300
- Design and furnishing$97,750
- Total entry cost$174,050
- Recorded annual cash flow$37,408
- Recorded cash-on-cash14.92%
The tax position
- Purchase price$530,000
- Typical cost seg reclassification25% of price
- Illustrative year-one deduction$132,500
- Illustrative tax reduction at 40%$53,000
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
Panama City Beach is the value entry into Gulf Coast beach ownership. A four-bedroom here costs a fraction of the equivalent property forty miles east on 30A, and while the nightly rate is lower, the ratio between what you pay and what the property earns is frequently better.
Shardul and Mayanka bought a four-bedroom at $530,000. For a dual-income household making a first move into short-term rentals, that entry point does something important: it keeps the down payment and the furnishing budget inside a range where a slow first quarter is an annoyance rather than a crisis.
The four-bedroom configuration is deliberate. In Gulf beach markets, the jump from three bedrooms to four moves a property from the couples-and-small-family bracket into the two-families-splitting-a-house bracket, where nightly rates rise faster than the purchase price does. It is the single highest-leverage bedroom count in most beach markets.
Panama City Beach also carries a longer season than markets further north. Spring break, summer, and a substantial autumn shoulder driven by warm Gulf water into October give the calendar more billable weeks than a comparable Atlantic property, which is what makes the lower nightly rate work.
Questions about this deal
How much did the Panama City Beach property cost?
Shardul and Mayanka bought a four-bedroom in Panama City Beach, Florida for $530,000.
Is Panama City Beach a good short-term rental market?
It is the value entry into the Gulf Coast. Purchase prices sit well below Destin and 30A for a similar guest, and the season runs from spring break through an autumn shoulder driven by warm Gulf water.
Why is four bedrooms a common target in beach markets?
Four bedrooms moves a property out of the couples and small family bracket and into the two-families-sharing-a-house bracket, where nightly rate rises faster than purchase price.
Related
- Short-term rental market analysis for Panama City Beach
- Buying the Emerald Coast at a discount
- Florida short-term rental regulations
- Beach property investing guide
- 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