Rental #10 Pics --Cape Coral Florida 3/2/2 That Was On CL As "30K Under Market"

8 Replies

I posted maybe a week ago about a house posted on CL. It was advertised as 30K under market. Usually, those types of ads aren't quite truthfull:) I did talk to a couple of BP members about buying it but they didn't have quick funds and this one had to be done FAST. So, rather than let a great deal go elsewhere, I put it under contract, had inspections, and decided to move forward. The numbers are decent but not great. However, I got about 25K in free equity simply buying the property. It cost me just under 121K and will rent quickly in the $1200 range. Taxes are steep at $2400 (typical for Cape Coral). Maintenance, capex should not be bad. It is a 2004 build. It is on city water and sewer in the SW Cape Coral area and the 21K+ in water and sewer assessments have already been paid. That was one reason I felt it was pretty enticing. I closed today and already have one applicant to rent. Here are a few pics.

John Thedford, Real Estate Agent in FL (#BK3098153)

Congrats!  Looks like it's in great shape; just find a tenant and go.  Can't get much more turnkey than that!  You say you shopped around at BP first but ultimately did the deal yourself.  If you don't mind, how did you finance it?  

congrats. our taxes are pushing 3k per year..

Looks nice, how much can the home re-sell for if you wanted to flip it?

Originally posted by @John Thedford :

I posted maybe a week ago about a house posted on CL. It was advertised as 30K under market. Usually, those types of ads aren't quite truthfull:) I did talk to a couple of BP members about buying it but they didn't have quick funds and this one had to be done FAST. So, rather than let a great deal go elsewhere, I put it under contract, had inspections, and decided to move forward. The numbers are decent but not great. However, I got about 25K in free equity simply buying the property. It cost me just under 121K and will rent quickly in the $1200 range. Taxes are steep at $2400 (typical for Cape Coral). Maintenance, capex should not be bad. It is a 2004 build. It is on city water and sewer in the SW Cape Coral area and the 21K+ in water and sewer assessments have already been paid. That was one reason I felt it was pretty enticing. I closed today and already have one applicant to rent. Here are a few pics.

John, I've seen your ads on craigslist ha, but anyways, did you check it for Chinese drywall? Huge concern for properties built 04-06 here in the cape.... Seems like a nice property though!

Originally posted by @Jordan Williamson :

John, I've seen your ads on craigslist ha, but anyways, did you check it for Chinese drywall? Huge concern for properties built 04-06 here in the cape.... Seems like a nice property though!

 Who was the builders in Florida with the chinese drywall? Thank you. 

@James Tobin

I put down 1/3 and borrowed the rest through private money.

@Adrian Chu

I could flip it in the 150K range but I prefer long term buy and holds. This offers better profits and better tax benefits in the long run.

@Jordan Williamson

We had inspections done. I never buy anything without one. That is cheap insurance.

@Sandra Gibson

There were a lot of builders that got stuck with defective drywall. I don't think it was any one in particular. Fortunately, many of those have been remediated but there are still a few hanging around. As a matter of fact, there is one advertised for sale on CL now that has defective drywall and the seller IS NOT disclosing the problem. They have a nice ad stating how they buy well under market and bring buyers great deals with big discounts, etc. I went and looked at the house----and ran! If I recall correctly it was a little over 2K square feet and advertised in the 109K range. After talking to the sellers I don't trust them to disclose this and would not do business with them in the future.

John Thedford, Real Estate Agent in FL (#BK3098153)

The first sign of Chinese drywall is a black looking soot around things like electrical outlets, wires, plumbing fixtures, etc.  This black stuff cannot be wiped off -  If you see a property built in this era with black everywhere, run!  

Lesson here: Don't buy Chinese drywall or bad take out food.

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