Buying a Broken Bow / Hochatown Cabin: Know the Numbers

RENTAL INCOME: ASK FOR PROOF

• Request 12–24 months of booking reports and owner statements, when available.
• Look at income by month, not just the strongest season.
• Separate nightly rent from cleaning fees and taxes.
• Ask how owner stays, cancellations, and maintenance closures affected bookings.
• Treat projected income as an estimate, not a guarantee.

EXPENSES: LOOK BEYOND THE MORTGAGE

• Property taxes and short-term rental insurance
• Electricity, water, propane, internet, and trash
• Booking-platform fees and management charges
• Cleaning, laundry, supplies, and deep cleaning
• Hot-tub service, pest control, lawn care, and repairs
• HOA or road-maintenance dues and applicable licensing costs

CLEANING: WHAT DOES THE GUEST FEE COVER?

• Compare the cleaning fee collected with the actual turnover bill.
• Ask who pays for laundry, restocking, deep cleans, and extra cleaning after owner stays.
• Don’t assume cleaning fees are extra profit.

MANAGEMENT: READ THE DETAILS

• Is the cabin self-managed or managed by a management company? This can significantly affect how it is marketed.
• What percentage is charged, and what income is that percentage applied to?
• Are pricing, marketing, guest communication, and after-hours calls included?
• Are maintenance coordination, supplies, or repair markups extra?

HOA FEES AND DEED RESTRICTIONS

• Verify fees.
• What are the deed restrictions for this particular neighborhood?

MAINTENANCE: PLAN FOR THE BIG ITEMS

• Review the age and condition of the roof, HVAC, appliances, decks, and hot tub.
• Budget for furniture, mattresses, linens, and other replacements.
• Keep a reserve for slow months and unexpected repairs.

CASH FLOW: WHAT’S ACTUALLY LEFT?

Rental revenue, minus operating expenses, loan principal and interest, and replacement reserves, equals cash available before income taxes.

Count each expense once. If taxes and insurance are already included in operating expenses, don’t subtract them again through the mortgage’s escrow payment. Then test the numbers with lower bookings or higher expenses.