2/2.5 in Miami Lakes

[Tony Oliver]

So earlier this week I had a deal fall through because I was not quick enough to come up with a contract offer but I still decided to consider an evaluation for the unit.

Background- I was walking my neighborhood to try and burn some calories from my taco dinner when suddenly, a For Sale By Owner sign appeared. Just to see, I decided to call the owner and found out the following:

-Unoccupied for 3 years by owner

-Being put up for sale by nephew since owner doesn't live in the area anymore

-HOA fees are $280 (includes property insurance)

-Asking for $140k

-FHA not allowed due to being a Condo

At first it sounded like a good deal since area rents average around $1,400 for something like this based on rooms but the HOA fees eat into a lot of the potential income. Here are the numbers based on an interest of 5% and a down payment of 20%

Cap rate: 8%

Cashflow/investment: 1%

Rent: $1,400

Taxes: $2,900

Repairs: $1,000

NOI: $8,267

Cashflow before taxes: $636

Taxable net income (loss): -$1,529

So, it may have been an OK property for single guy to start