FL Beach Townhome. Offmarket. Owner Finance. Great Rental Income. What you think?

[Jonathan Napper]

I have been lucky enough to come across an unlisted townhome 265' from the beach in  Florida. I have be able to negotiate some good terms. What do you think of this property? How would approach it? (I am having trouble coming up with the 30K)

Details.

1bdr 672 sq ft - not a high rise but you actually have your own driveway)

Sell price of $75000

Down Payment of $30000

Owners will carry $55000 @ 5% for 15 years - (434.93 per month)

Rents to snow birds for $650 per month for 8 months out of the year. During peak summer season its rents for $700-$750 per week. All rents have been documented and verified, with current winter tenant in now and signed on for next winter. No planned assessments within the next 3 years. Gated community with the amenities.

Potential Income - $18,500

Less 20% Vacancy - $3,710  (73 days per year)

Effective Rental Income - $14, 840

Less 12% Taxes - $430

HOA Fees- $1,560

Maid/Turnarounds - $1,580

Insurance - $1,400

Maintenance - $800

Operating Expenses - $5770

NOI - $ 9,070

Debt Service - $4270

Cash Flow before taxes - $4,800

Cap Rate of 30%

Cash Flow 16%

Is this something you would buy and hold or try to wholesale? (Since im having trouble with the 30K)

Thanks

J