First Investment Property At Naples Florida

12 Replies

Investment Info:

Other buy & hold investment.

Purchase price: $150,000
Cash invested: $50,800

2 Beds 2 Baths Condo at Napoli Luxury Condominiums at Naples Florida.

What made you interested in investing in this type of deal?

I saw a great Buy and hold opportunity and decided to move forward. Naples is a small city at South west Florida and there is a great potential for appreciation and cash flow. The numbers looked promising:
Bought the condo for $150000
Put 30% Down
Cash out of my pocket including closing costs and repairs $50000
Rents here at Naples are between $1400-$1600. I decided to put it on the market for $1450
Cash Flow - $450
Approximate Cash on Cash Return around 10%

How did you find this deal and how did you negotiate it?

I found it online. The apartment was on MLS for almost an year and the buyer wanted to move forward.

How did you finance this deal?

30 year Conventional. 30% Down, 5% interest.

How did you add value to the deal?

We fixed up the unit and updated the fixtures. It was very outdated but in good condition. It just needed refreshing.

What was the outcome?

I have a feeling that we should have offered a little less since the seller was very motivated.

Lessons learned? Challenges?

I have difficulties renting out the apartment since the season here at Naples is almost over so my holding costs will kill my Cash on Cash Return. I am still gonna make around 10% return but next time I would be more careful of when to buy this kind of properties.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked with an agent.

Hi there...congratulations and thanks for sharing this. My husband and I are very interested in Naples. Are you local? And are you managing the property yourself? We are going out in the next couple of months to get a feel for the different neighborhoods...

Hi. Yes I live here at Naples since 2012. It is a great place to invest in but you have to be careful what type of property to buy. It is mostly condos and townhomes. There is around 7% appreciation a year and the rents are getting higher every year. The only thing is that Naples is still a seasonal place and summer time is very hard to find renters.

I manage my own rentals since I have just 2 properties.

Let me know if u guys need help of finding a deal. I am happy to help

We did the renovation by ourself since it was just cosmetics. I used some subcontractors that I found online. It is very hard to find a good contractor in this area and u should be very careful.

HOA fees are 271$ a month and it is very low for Naples. They take care of everything outside the condo and there is no assessments the last 10 years which is good...

I've looked at those units before. When you say cash flow is around $450, how much are you counting for vacancy, repairs etc?

@Atanas Krastev hey there! I was reading your thread from last year. My family and I are new to town and live in pelican marsh. Looking for our first rental property here and was thinking single family home. I know you have some experience with this from your post, do you think that would be a good idea since we may find renters that will be here all year rather than seasonally? I’m trying to figure out if I should get my first property near us here in Naples or look elsewhere. Also do you know of any groups or anything to network with other investors here? Trying to also build a team of people to work with as well. Cheers!

Clark , while I live in the neighborhood for 10 years now , it’s easy to let you know you are surrounded by best opportunities to invest close to Pelican Marsh . 
SFH or Condo , seasonal or year round , North Naples is just 1 great area to invest . With a budget 3 Million , I would take you to The Moorings / Park Shore . Lower ?! We should focus on the rentals with future value & close to the beach ... on
Willoughby Acres , Regent Park, Palm River, Imperial G. Estates, Wiggins Lakes   .... just o start with the conversation . 
Older / close to the beaches or newer construction great for families & school . 
All depends on your focus. 
10 years in Naples & property investor on 2 continents . REALTOR with John R Wood , Fifth Avenue South

Showing investments SFH in Naples Park Sunday , investor from Iran .

Talk soon , Astrid

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