A type of mortgage where the interest rate remains the same for the entire loan term, providing predictable monthly payments for short-term rental owners.
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Glossary Term: Real Estate Investment
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A financial metric used to evaluate the profitability of a short-term rental investment, considering income and expenses.
A model where multiple investors share ownership of a vacation property, typically a high-end condo or villa, and receive usage rights for a portion of the year.
An initial payment made when purchasing an investment property for short-term rentals, typically a percentage of the total purchase price.
Investing in a short-term rental property that requires renovation or redevelopment. This can be a higher-risk, higher-reward strategy compared to investing in a turnkey property.
An accounting method that allows property owners to deduct a portion of the property’s value each year to account for wear and tear.
A table outlining the periodic payments of a mortgage loan, showing the allocation of each payment towards principal, interest, and other applicable charges over the life of the loan.
A type of mortgage where the interest rate fluctuates based on market conditions. This can impact short-term rental owners who use mortgages to finance their properties, as fluctuating interest rates can affect profitability.