Team Lead
Kelly Davis
Associate Broker & Team Lead
Kelly is the heart and engine of Big Beach AL Team. She pairs coastal market knowledge with creative marketing and helps buyers and sellers make confident moves on the Gulf Coast.
1
Market Benchmarks
Property Tier & Revenue Projection
Select location and bedrooms to load coastal benchmark numbers
$300k - $2.5M
$
$55K – $78K/yr
$
ℹ️
Local Lodging Tax (16% in City Limits): Gulf Shores and Orange Beach currently publish a 16% lodging-tax rate inside their city limits. Collection and remittance responsibilities depend on the booking channel and management arrangement, so confirm the exact address and filing setup before operating.
2
Operating Expenses & Management
Customize management, HOA dues, utilities, and insurance
Total OpEx
$24,120 / yr
0%
($0/yr)
$9,600 / yr
$
Includes building master insurance, reserves, water, trash & amenities.
$341 / mo
$
Baldwin County non-homestead investment rate (~0.70%). Auto-scales with price (editable).
$150 / mo
$
Interior walls-in, contents & loss of rental income.
$3,600 / yr
$
Power/cooling, Wi-Fi, streaming & cable.
~3.5% of Rent
$
Wear & tear, HVAC service, linens & supplies.
Guest Pass-Through ($0)
In Gulf Shores/Orange Beach STRs, guests pay cleaning fees directly on booking (~$150–$325/turn), creating a net-zero cost to host.
3
Mortgage & Loan Financing
Compare 10% Down Second Home, 20% Investment & DSCR loans
Monthly P&I
$3,446 / mo
$117,000
%
30-Yr Fixed
%
Term
Estimated Closing Costs & Prepaids (~3%):
$17,550
Total Cash Required:
$134,550
Bottom Line Pro-Forma
Estimated Profit / Loss
Positive Cash Flow
Annual Net Cash Flow
+$5,420
After all expenses & debt
Monthly Cash Flow
+$452/mo
Net in your pocket
Cash-on-Cash
4.03%
Cap Rate (NOI)
7.16%
Operating DSCR
1.32x
Gross Yield
11.28%
Gross Rental Income:
$66,000
- Total Operating Expenses:
-$24,120
= Net Operating Income (NOI):
$41,880
- Annual Mortgage P&I:
-$36,460
= Net Annual Profit / Loss:
+$5,420
Revenue Allocation:
Debt
Mgmt
HOA/Tax
Net
📈 5-Year Total Return Model 3% Coastal Appreciation
5-Year Cumulative Cash Flow:
$27,100
5-Year Principal Loan Paydown:
$38,450
5-Year Property Appreciation:
$93,170
Total 5-Year Wealth Generated:
$158,720
Estimated Total Return on Initial Cash: 118%
Educational estimate — CPA review required
Potential Cost-Segregation & Depreciation Timing
See how moving some eligible building components to shorter tax lives could accelerate depreciation. This is not a tax credit, tax advice, or guaranteed savings.
Estimate +
Educational estimate — CPA review required
Potential Cost-Segregation & Depreciation Timing
See how moving some eligible building components to shorter tax lives could accelerate depreciation. This is not a tax credit, tax advice, or guaranteed savings.
Why both periods are shown: Short stays do not automatically determine the building's recovery period. A property meeting the residential-rental definition may use 27.5 years, while qualifying hotel, motel, or other transient-lodging property may use 39 years. An average guest stay of 7 days or less is a separate passive-activity rule and does not by itself select 39 years. Have a CPA classify the property.
The 15% land and 20% short-life allocations are editable screening assumptions, not conclusions from the MLS or a cost-segregation study. The illustration assumes eligible short-life property is acquired and placed in service after January 19, 2025 and qualifies for the current 100% federal bonus-depreciation rule.
Estimated depreciable building basis
$0
Potential short-life basis from study
$0
Ordinary annual depreciation comparison
$0
Comparing 27.5- and 39-year building treatment
Potential additional first-year depreciation
$0
Range above both simplified ordinary comparisons
Illustrative federal tax timing effect
$0
Additional-depreciation range × entered marginal rate
This is not a refund, credit, or guaranteed tax savings. It is only an illustration of possible timing. Passive-loss, at-risk, material-participation, personal-use, income, placed-in-service, recapture, state-tax, and other rules may reduce, suspend, defer, or reverse the benefit.
Other rental-property items to review with a tax professional
• Mortgage interest• Property taxes• Insurance
• HOA and management• Utilities and cleaning• Repairs vs. improvements
• Supplies and furnishings• Professional fees• Travel and mileage
An expense is not automatically deductible because it appears here. Eligibility, documentation, rental-versus-personal allocation, capitalization rules, and deduction limits must be determined for the owner’s facts.
📘 Deep Dive Guide: Learn how cost segregation, bonus depreciation, the STR 100-hour rule, and 14 write-offs work together.
Read Tax Strategy Guide →
Official educational references: IRS Publication 527, IRS Publication 946, IRS Publication 925, and the IRS Cost Segregation Audit Technique Guide.
Free Pro-Forma & Rate Quote
Get a Custom Pro-Forma for Any Condo
Have Dave Davis confirm current loan terms and Kelly Davis request the available unit-level rental records and association documents.
Want to discuss your financing options right now?
Schedule a 15-Min Clarity Call with Dave
