It's not realistic to use these numbers without amortizing the upfront cost on top of them as well. Even if you spread them out over 20 years, the developer pricing adds at least another $1,000/yr.
So, if I-
+ spead the $20K purchase over the life of my Surf Club usage, again let's say 20 years, and...
+ rent out the lockoff to cover MF's annually, and
+ assume a lost opportunity of 5% return on my capital (another $1K/yr)
... assuming the rental revenue for my "studio" unit keeps up with the MF's, over a 20 year period it will cost me a fixed $2K/yr to stay on the beach in a one bedroom condo (remember the lockoff bedroom is gone).
In your words, that is definitely still more than "reasonable."
In my case I don't "assume" any lost opportunity because I financed
ALL my purchases from 0% credit cards for the last 10 years believe it or not. We always had good credit with high limits and thankfully enough steady income to pay down the "loans" as we went.
For years it was like taking candy from a baby because there were so many offers and no associated fees, so I would flip at times several $100k around every 12 months for free. Over the lst 5 years they started to grandually introduce transfer fees but those are still manageable so I still pay the game successfully.
The last one I still have a balance on is MOW. I start by using my MAR Visa to pay a large portion for the points and then used a 0% card to pay off.
Incidentally my first 2 Mauis and Aruba Surf I paid full with MAR Visa first for big points but they stopped allowing full payment with MAR Visa a number of years ago.
I'm down to $1800 on the $25k I "borrowed" for the MOW. I have paid some financing because of the fees but nothing close, probably 1-2% on some over the course of time, but nothing near 5%.
The fact is we do this with almost every major purchase because we still have great credit and very high limits because of what we did years ago opening up every card we could. We have one card with $95k credit limit and no annual fee. It does have a 3% fee but I can easily negotiate that into the cost of anything.
For instance just put in nice vinyl fencing for $4200. Negotiatied with 4 suppliers. Did final negotiations with lowest and favored supplier who threw in removal of existing fence which lowered price by $400. I then used the 0% credit card and wrote him a check that I don't have to pay off for 12 months.
We do this on every major purchase and it really allows us to manage our income and expenses very well and procure things we wouldn't be able to if we had to shell out for cost for the item upfront.
Even for my daughter's college costs that are on the horizon will be handled the same way. I have one card with $10k limit and only 1% transfer fee that I have ready. I can't negotiate with the colleges but at 1% I'll be happy to float the money for 12 months instead of just paying in one shot.