First Investment Property At Naples Florida
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 It was very outdated but in good condition.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.