Boynton Beach, FL · Member since 2018 · 2 posts · 1 vote
Hi, I'm a newbie from South Florida. I'm wondering about less desirable areas now but that area 1.3 miles from the beach. The houses there are tiny and not updated at all but are going for 175,000. Does that sound like a place to invest?
What city are you talking about? It depends on the city and if the neighborhoods are improving. I would take a look at comparables to see what the highest priced property has sold for along with the lowest.
And of course, don't rule out house hacking for yourself and .... investing out of state, too! Welcome to BP!
What city are you talking about? It depends on the city and if the neighborhoods are improving. I would take a look at comparables to see what the highest priced property has sold for along with the lowest.
And of course, don't rule out house hacking for yourself and .... investing out of state, too! Welcome to BP!
Boynton Beach, FL · Member since 2018 · 2 posts · 1 vote
8y
The city is Boynton Beach and the area is next to the CRA redevelopment site. I think the properties are overpriced and the investors are just looking to flip the properties and not spend any $$. The thing that I keep thinking about is that it's a bike ride from the ocean and that will never change.
Lender · Miami, FL · Member since 2018 · 28 posts · 14 votes
8y
Hi Nancy, $175,000 is very cheap for anywhere in South Florida's coast (ceretis paribus, of course). Here's the great outlook about beachfront property: Florida population = 15 million and growing. The coast is always in demand. With redevelopment nearby, it sounds like the start of an interesting deal. Just make sure you pay attention to other variables, like how fast the immediate neighborhood is improving, what shape is your target property in and is it attached to dependent property, etc. Sounds compelling. Best of luck!
Licensed Mortgage Lender · Fort Lauderdale, FL · Member since 2014 · 98 posts · 13 votes
8y
I know the specific area, Ridgewood Manor. Been in the biz 30 yrs. like many similar subdivisions, I think the market is oversold. It was at this level in 2006 and came crashing down a few years later. It is a heavy investor and rental area. So,...if your rents, less vacancy allowance cAn cover your taxes, ins., repairs & maint., plus a satisfactory profit, then go for it
Lender · Miami, FL · Member since 2018 · 28 posts · 14 votes
8y
And to Gregory's point, we're starting to see a modest price adjustment now and it's a buyer's market. Therefore, that makes for better opportunities with multifamily apartments, anything 3-5+ units, because if you analyze a specific property, its true NOI (not proforma), and the market value based on the current CAP, then you can make the appropriate offer. A property selling at $550,000 might really be valued to you at $480,000, and you can justify your offer to the seller based on the numbers. If he/she doesn't accept, don't buy, but if you persuade them that any professional investor will look at the same numbers, that is how you get good deals...and then a loan originator like me or Gregory or Scott, can finance it for you.