Is that before or after costs of maintenance/upkeep/utilities/taxes? I bet it costs a fortune to live there with all the staff, security, landscaping, etc. but he also makes money off of the private memberships. Interesting thought.
My understanding is that's net income, so that's after taxes, upkeep, maintenance, wages, etc. etc. If I remember correctly Revenue for Mar-a-Lago is something like $150-180 Million, but like you said. It costs a fortune for everything required to maintain the "exclusive luxury" vibe.
Like I said 6% cap rate/return for a hospitality property in South Florida is pretty typical. South Florida is so overvalued these days, it's in the same class as LA, San Francisco, New York, DC, and Chicago in terms of cap rates/returns.
Residential cap rates/returns in South Florida are hovering around 3-3.5% currently, and Hospitality typically get's at least double what residential does. So the math lines up.
Is that before or after costs of maintenance/upkeep/utilities/taxes? I bet it costs a fortune to live there with all the staff, security, landscaping, etc. but he also makes money off of the private memberships. Interesting thought.
My understanding is that's net income, so that's after taxes, upkeep, maintenance, wages, etc. etc. If I remember correctly Revenue for Mar-a-Lago is something like $150-180 Million, but like you said. It costs a fortune for everything required to maintain the "exclusive luxury" vibe.
Like I said 6% cap rate/return for a hospitality property in South Florida is pretty typical. South Florida is so overvalued these days, it's in the same class as LA, San Francisco, New York, DC, and Chicago in terms of cap rates/returns.
Residential cap rates/returns in South Florida are hovering around 3-3.5% currently, and Hospitality typically get's at least double what residential does. So the math lines up.
Wow - it really is good to be King.