REO SW Florida Duplexes as Income Property

In the last 12 months, we have sold over 60 duplexes in Lee County.  Most SW Florida duplexes for sale and those sold are in Lehigh Acres, with a small amount in Cape Coral.  About 15 months ago, we are believed to be the first investors to go into the banks and purchase their portfolio of duplexes.  We did this for many reasons.  Victims of foreclosure, which were in the millions it seemed in SW FL were migrating to rentals in areas closer to the interstate, and putting themselves in a more central location to 3 big industry centers, Ft. Myers, Naples, Estero/Bonita. 

 Once rental rates stabilized, duplex inventory shrunk as investors are looking for insane cash flow.  During our webinars, I preach going back to the old-school fundamentals of investing in real estate.  Long gone are the days when we should use speculation as the leading reason to buy.  If you can generate good cash flow and put yourself in a "positive potential" housing micro market, your cash flow will make you rich and the future long term value gains will be gravy.

Duplexes are being purchased for $75k to $80k.  The duplexes we advise as favorable are the ones built 2006 or newer.  

So for an $80k purchase price, here are numbers, exact from our most recent transaction:

Gross Rental Income:  $15,000 ($625 per side is market rates and the usual minimum)

Annual Operating Expenses

Property Taxes:      $1,600

Insurance:              $1,000

Prop. Mgmt @ 8%    $1,200

Vacancy @ 5%         $750 

Total Expenses        $4,550

Net Operating Income:     $10,450

Capitalization Rate:     13%

So as you can see, an $80,000 purchase price can yield over $10,000 in annual cash flow.  The ROI is very strong and you are putting yourself into a property that is in an area that is close to everyday needs, including jobs.

If you would like more information on how to invest in SW Florida multi-family homes, please get in touch and we will share our inventory list and proformas with you.  We purchase bank direct and our prices are well below market value.  

to watch a walk thru of one of our duplexes, in the condition we buy them in and explanations as to what we fix to sell.