15421 Southwest 39th Terrace, Miami, FL 33185, USA
Great Deal Alert - Investment Property
Well, first of all, Happy New Year everyone! Now, let’s get to it. As I have told you many times, it is very difficult at this point in time to find properties that make sense. Well, here is such a property. Here are the specifics:
1 – First of all, this property cash flows on day 1 in a big way. It includes an assumable loan of $1.7mm at 3.3% interest which is fixed until July, ’26. I also have a lender who will give a second loan on this at a fairly reasonable rate. Ths means the cash flow should be about $10K/mo with a cash outlay of only about $800,000. That represents a cash on cash return of approximately 15%, Yes, you heard right…. 15%! Yes, it is an older building and there will be expenses along the way, but I have even allowed for a pretty hefty monthly maintenance amount in my calculations to get to $10K/mo. If there are any major issues, such as a bad foundation or whatever, we will discover this during the physical inspection period and renegotiate the price accordingly.
2 – the rents, while not terribly low, are not at market and there is about 15% of upside in the rents. And, as I say, the rents being not that low to begin with means the prospect of being able to vacate units over time (and not necessarily all that much time) is pretty good. All of which is to say, that $10,000/mo figure has the cabability of rising pretty quickly.
3 – This property has been on the market for about 5 months, most of that time at a much higher price than this. The seller has finally come to terms with what price he needs to put out there in order to actually sell the property. Plus, in talking to the agent, I learn that he will probably take a bit less than the asking price. Say, maybe $2.9 or even$2.85. With this still being the two holiday weeks, most of the market is “asleep” right now. So if one of you wants to ‘step up to the plate’, so to speak, this is precisely the kind of time when one can slip in and get a great deal. Just sayin’ …… – :-))
OK I am standing by to help whatever brave soul wants to make a run at this property.
Best,
Ken Shapiro,
Silverwood Properties
818-237-6963
