First deal: Selling sister condo in South Florida.

First deal: Selling sister condo in South Florida.

Jacksonville, FL · Member since 2019 · 3 posts · 0 votes

Hello group,

I am helping my sister sell her condo in South Florida and needed some help trying to figure out the numbers. She is pregnant and needs to sell in order to move into a bigger place. Current situation is she is selling her condo in south Florida (Lauderhill). The complex wants to get more investors into the there so she needs to find an investor to buy her place. I wanted to see if her place was a good deal for an investor and at what price point so I entered the numbers into the rental calc just to see what it would say. By my figures it will cash flow around $430 @ a selling price of 115k with rents at $1350. I still need to factor in the cap ex costs which I am not sure of because her HVAC, water heater, fridge, stove and dishwasher was purchased in 2008 and I know they are nearing EOL. I have the figures of how much it cost in 2008. I'm a little confused as to how to factor in these figures upfront on the calculator. I also added the analysis so it could be looked over by the group. I'm not sure if I got all my figures right or if I'm missing anything. If anyone would help me out, any useful advice would be greatly appreciated. I'm new to analyzing deals and I'm super eager to learn how to get all these figures as close as possible.

 @115khttps://www.biggerpockets.com/...



Thank you in advance.

Mikeal 

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  • Realtor · FL · Member since 2013 · 372 posts · 83 votes
    5y

    @Mikeal Lyew

    The rent you have at $1350/m seem low for that area. I'm not sure layout but broward on average is higher than that. With condos you will not need to have a high capX reserve. The major ticket items are covered by the HOA (roof, electrical, etc). The items you mentioned(stove, dishwasher, etc), you could purchase those on sale at your big box retailers. I recently helped my client purchase a condo in lauderhill with a potential of 1.5% income of the purchase price. The unit needed rehab but nothing major. I would be honored to discuss with you. I look forward to hearing from you soon.

  • Investor · Sacramento, CA · Member since 2021 · 4 posts · 2 votes
    5y

    Hi Mikeal,

    Your numbers are correct but they assume the buyer is paying in full. If someone were to purchase this with a conventional loan at 3% interest and 20% down, the monthly cash flow is only $43. I've attached my analysis below. 

    https://www.biggerpockets.com/...

  • Investor · Miami, FL · Member since 2013 · 377 posts · 258 votes
    5y

    Mortgage and HOA fees were left out of the calculation. Like @Duriel Taylor said, the HOA should cover roof. New appliances and HVAC should run you 3-5k depending on quality you choose. 

  • Jacksonville, FL · Member since 2019 · 3 posts · 0 votes
    5y

    Thank you all for your responses. I assumed cash because I didn’t know what financing the buyer would have. This was my first analysis on a property. I will forward these comments along to my sister, I appreciate all of the help. 

  • Real Estate Broker | Investor | Property Manager · Plantation, FL · Member since 2015 · 228 posts · 68 votes
    5y

    @Mikeal Lyew i have experience selling in Lauderhill and it can be VERY tricky depending on the association and community she owns in. I would love to send you some tips to pass on, so please reach out when you have a moment. The request of the association to get more investors is beyond awkward and out of the ordinary, though I can't stress enough how backwards a few of the associations in Lauderhill are.

    I'll send you a connection request.

  • Member since 2021 · 67 posts · 52 votes
    5y

    For cap ex, it might be helpful for you to use a fixed % of rental income to budget for (5-10%). 

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