Tampa Rental Property Wholesale Deal – Cap Rate 26.28%!

[Suzanne P.]

Tampa Rental Property Wholesale Deal – Cap Rate 26.28%!

Looking for a quick buyer, due diligence period ends tomorrow (original buyer backed out last minute). I am helping one of my colleagues who has found a unique boutique bungalow with an in-law suite and a legal mobile home – all rentable units. Property also has an extra lot in the back with its own folio that is included in the sale (buyer would need to do their own research whether this lot could be built on). Centrally located in Tampa, close to restaurants parks and expressways.

Property details:

3 bedroom, 2 bathroom bungalow, 1,046 sf + 1 bedroom 1 bathroom mobile home

Lot size: 6,100 sf

Year built: 1920

Financials:

EMD $1,000.00
Purchase price: $105,000 (wholesale fee included)
Closing cost: $1,700 (estimate)

Units and income:
Main house: 2 bed 1 bath (currently owner occupied) - $1,200 income

Mother-in-law house: 1 bed 1 bath (tenant occupied) - $600 income

Mobile home: 1 bed 1 bath (tenant occupied) - $500 income

Total monthly income: $2,300

Annual gross income: $27,600

Cap rate: 26.28%

Cashflow breakdown:

ROI (cash)
Purchase price (includes wholesale fee): $105,000
Closing cost: $1,700
All-in-cost: $106,700
Annual gross income: $27,600
Estimated expenses: $3,500
Cash-on-cash return: $22.58%

ROI (financing)
Finance (80%): $84,000

Down payment: $21,000

Annual gross income: $27,600

Mortgage annually 6%: 6,000
Expenses annually: $3,500

Net operating income: (NOI): $18,100
Cash-on-cash return: 86.19%

Google drive link: https://drive.google.com/file/d/0B8jk4sMIl6ngSXhveDM5djkxbjQ/view

Call Alex 416-569-9090