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Updated over 8 years ago on . Most recent reply
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2/2.5 in Miami Lakes
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