Salt Spring Island Real Estate tip on B&B

Salt Spring Island real estate tip on B&B

If you are moving here don't over leverage on buying your new salt spring home. If you are planning on moving here and starting a B&B here are a few thing to think about.

By the time you invest in the larger home for the B&B you might just be ahead by getting a smaller place and not doing the B&B. If you looked at BerryHill B&B as an example I will show you what I mean. Lets say we get 60 day of rent this year and we net (less expenses) $100 per night that means we would net $6,000 per year. How much did the suite cost to build; about $50 per sq ft to renovate the 500 sq ft at $50 per sq ft = $25,000. Now that means we are making about 24% return on our money but the money is not making us the 24% per year. We have to work at it to make the money make the return. The cleaning, laundry and breakfast don't just happen by themselves.

A Salt Spring island B&B is a viable source of supplemental income but you have to have the capital to invest in the home first and be willing to do the work yourself. Is it worth it? Yes. Is it fun? It's work and yes it is fun to meet people from all over the world. Do I recommend it? Yes. I'm thinking of putting together a course for people who want to run their own B&B. If you would have any intrest send me an email.

Cheers
Scott