40-unit Boarding House in Downtown Daytona Beach! GREAT CASHFLOW!

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I have, pending acquisition, a 40-room boarding house in downtown Daytona Beach, FL. There is currently 100% occupancy, and the building is grossing $22,000 in monthly rent. Annual NET cashflow is over $200,000 per year, and the property has a 30% CAP rate at my asking price of $700,000.

Again, this property is a boarding house, so it IS management intensive but the cashflow is worth the work.

Everything is in working order, and there are no major repairs needed.

***ASKING PRICE $700,000***

Reply to this thread, or send a private message with your e-mail to receive a full breakdown of financials.

How is this property grossing $22,000/month (or $264,000/year), but netting $200,000? Are you saying that total expenses (insurance, taxes, utilities, maintenance, management, cap ex., etc.) are only $64,000/year or 25% of gross income?  That expense number strikes me as insanely low, as apartments often run 50% to 60% of gross rents in terms of expenses.  Am I missing something?  

I apologize.  That was a typo.  The property is grossing more like $25,000/mo. and $300,000/year.  I have a financial breakdown if you want to see it, just send me your e-mail.

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