15421 Southwest 39th Terrace, Miami, FL 33185, USA
Great Deal Alert - California Bungalow
Speaking of TIC, this property fits the model of TIC like few others I have ever seen. And it appears to be “flying under the radar” for some reason. You can pick it up for $1.4mm, possibly even $1.35mm. You will need to spend some money to vacate the units, but three of the tenants are already making plans to leave and two others are already aware that they will likely need to leave as well. I anticipate fewer problems vacating tenants than in most scenarios, based on my conversation with the listing agent. You will also need to spend some money to clean up the units but, again, not that much from what I could see on my site visit.
On the back end, I am seeing the units selling as TICs for a total of $3.25mm. If you deduct closing costs and holding costs from that figure, over a year’s time, that puts you at a ‘net’ sale price of about $2.9mm. Deduct the cost of vacating tenants ($175,000, including the $25K TIC fee,) and the cost of cleaning up the units (approx $50K per unit, or $300,000 total) and that now puts you at approx $2.4 million. Deduct that from the $1.4mm you paid for the property and that leaves you with a $1mm profit over a year’s time!
So, let’s recap: between the down payment for your purchase (approx $400,000,) the TIC fee ($25K) and the relocation fees ($150K) and the renovations costs ($300,000,) that is a total ‘out of pocket’ of approx $875,000. And then, when you sell the units individually, you get all that $875,000 back, plus $1 million! Let’s say my estimate of what you will receive on the TIC sales is off by $150,000 (I don’t think it is.) Even so, you still get $850,000 back for your $875,000 investment in only one year’s time. That is virtually a 100% return on investment in one year!
OK, if this is all a bit too much information and you couldn’t totally follow it, give me a call and I will happily walk you through it…. very slowly. I deal with this stuff all the time so it is perfectly understandable if if isn’t crystal clear to you even while it is to me. But if you are willing to hang in there with me, you just might pick up an amazing real estate opportunity here.
Talk to you soon! – Ken Shapiro, Broker/Owner Silverwood Properties – 818-237-6963
