Florida Real Estate Deal
Afternoon all,
I have a property I'm looking at in Florida and the numbers make sense (somewhat) Low purchase price, with high rent values. However, the land is leased at $576 per month, which apparently includes the property taxes for the year and increases 2-4% each year. Given the numbers below, would this still be considered an ideal investment? I know your COC return should be much higher, but ive also heard in BP podcast that if its a buy and hold for cash flow sometimes you will have to wait a couple years to break even due natural market appreciation. This would be my first investment. If anyone is willing to help me analyze this and what i may be missing i would much appreciate it. Definitely want to make sure im not making a bad investment, especially my first one.
Total cash needed is less than 50k
Passes 1% rule
Fails 50% rule
Cash flow is less than $150 and comes in at $137
ROI and Equity is -24% until year 3
Cap Rate - 7.4%
COC - 3.4%