So earlier this week I had a deal fall through because I was not quick enough to come up with a contract offer but I still decided to consider an evaluation for the unit.
Background- I was walking my neighborhood to try and burn some calories from my taco dinner when suddenly, a For Sale By Owner sign appeared. Just to see, I decided to call the owner and found out the following:
-Unoccupied for 3 years by owner
-Being put up for sale by nephew since owner doesn't live in the area anymore
-HOA fees are $280 (includes property insurance)
-Asking for $140k
-FHA not allowed due to being a Condo
At first it sounded like a good deal since area rents average around $1,400 for something like this based on rooms but the HOA fees eat into a lot of the potential income. Here are the numbers based on an interest of 5% and a down payment of 20%
Cap rate: 8%
Cashflow before taxes: $636
Taxable net income (loss): -$1,529
So, it may have been an OK property for single guy to start
Correction: I actually think as a personal residence because of the proximity to highways and travel around.
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Hi Tony. I'm also from Miami Lakes. Nice to meet you. My personal investment business is right on the lake in the Regus building.
Did you try to put it under contract? Are the HOA payments up to date? What's the condition of the property?
Let me know and I can help you put it under contract and wholesale it on our list. I'm the Director of the Broward and Miami-Dade Real Estate Investors Association Chapters.
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