Hey. Just about to pull the trigger on a purchase in Florida, north of Fort Myers south of Tampa.
It’s a duplex with 30%down for mortgage reasons.
The numbers still work. But certainly not a home run. Just a base hit I feel. Mind you this is the first time at bat in the majors.
Purchase 220k, monthly income 1850, monthly expenses 1441, purchase cap rate 6.61%, cash on cash 6.66%. Cash flow 408/mo
I’m figuring this isn’t bad as a getting in the game starting point. Thoughts?
From Fort Myers here. I honestly think you can do better. You can find duplexes in Lehigh still for under 200K and you should be able to achieve at least $1,000 per side. This is just one example. I could point you to several others.
Best of luck!
Hey @Brit Foshee thank you for your reply. More specifically, we are looking in the Venice, Nokomis, and Sarasota areas.
Asking price is 249k,offer 220, super super light fixer with paint. Tenants in place and raising rents a little.
I have to agree that there are far better deals out there on the west coast of Florida...
Hi Kevin, I live and work in the Sarasota, FL market from Bradenton to Venice. There are properties currently on the market that will return better than a 6.61 CAP. However, the more important question is: Where is the property located?
There are parts of town a 6 CAP would be a reasonable return and other parts of town that demand a 10 CAP+ for the investment to make sense. I'm happy to take a look at your deal and give you my 2 cents.