Property Listings
41 unit South Bay deal only $19k per door %10CAP+
1150-1190 W. Palm Beach Rd.
South Bay, FL 33493
NOT Listed! Not Bank Owned! Fully Rehabbed!
41 Unit Apartment Building
$775,000
19K/Door!
Attention: Looking for HIGH CASH FLOW?
Consider this opportunity:
This property is a 41 Unit Apartment Building in South Bay, Florida comprised of 24 2/1′s and 17 1/1′s priced at $750,000. It will be fully rehabbed by the end of this current month, August 2010. It has a projected Gross Income of $311,700/yr. It has projected Operating Expenses of $125,170/yr. This produces $186,528/yr in Net Operating Income. This delivers a ridiculous 24.8% Cap Rate/ROI. What’s the catch? If you can call it a catch; right now the property is 30% occupied. So what?
As it stands right now, the buyer smart enough to snap this up, will be slightly cash flow negative on a monthly basis. Approximately 7500/mo (and climbing) coming in right now; approximately 10,000/mo (steady) going out. The buyer will have another +/- 28 rehabbed units to rent adding another $18,000/mo to the monthly take.
Assuming, conservatively, 12 months to rent up to 90-100% occupancy, at the end of the year,
1) the buyer would have enjoyed +/- 10% ROI on his investment, year 1, and 24% ROI
moving forward,
2) the buyer would be sitting on an asset throwing off 186,528/yr NET Cash Flow on an
investment of $750,000,
3) and the buyer would own a property worth several hundreds of thousands more.
Why? Because this property, fully rented, priced at an insanely conservative CAP Rate of
15%, is worth $1,240,000. That is a $490,000 equity increase.
Let’s say our numbers are off. Pare back the income, add some more to the expenses, take a little longer to rent up. It doesn’t matter. So you make 18% instead of 24%, 290,000 on the upside instead of 490,000. It doesn’t matter. These are GREAT returns if you had to rehab the property yourself. You will not. It is done. All you have to do is rent up a freshly rehabbed property.
This property is in South Bay, Florida, south of Okeechobee. It’s a small lower income area west of West Palm Beach. Section 8 pays everywhere. See below link to look at sec 8 guidelines.
Serious buyer ONLY, please.
See below for some details:
Projected Rent Roll:
Units B/B Rent Monthly Yearly
24 2/1 $675 $16,200 $ 194,404
17 1/1 $575 $ 9,775 $ 117,300
41 65/41 $ 25.975 $ 311,700
N O T E
Low income and some section 8 tenants paying their own utilities: water, electrical, sewer etc. Property Makes about $500 a month on laundry room machines. Taxes are very low and fixed. Property Manager on site and Maintenance man living in one of the units rent free.
- TO BE FULLY REHABBED BY THE END OF AUGUST 2010
- CURRENTLY 30% RENTED & INCREASING
