Hi guys,
I have been checking out Hillcrest Condos in Hollywood Florida. I believe they started building these in late 60's and last one was built in 1988 There are 27 buildings in a very nice area. Most are 55+ but some are all ages and allow for renting. They are very nice and larger than the average condos and each building comes with a security desk and lobby. There are 1 bed 1 and 1/2 bath and 2 bed 2 bath the best are the 2 2 corners. I have run the numbers on these, the deal killer for a condo is the HOAs the smaller ones are $336 a month and bigger ones can be $500 a month. Prices go from $98,000 up to $170,000 I just ran the calculator on one in market place which claims 6.72 Cash on cash roi which isn't attractive to start with but my numbers are worse! On a small unit at $115,000 with rent of $1200 a month: LOL $3.06 monthly cash flow! and .15% cash on cash return! You can live large lol. Though they are nice and rent well they are no deal. Kiled by HOA.
Only if you have a spare $115,000 laying around-respect! and then you could make cash flow after HOA and expense but condos I have seen are a no go.
$1,200.00MONTHLY INCOME. $1,196.94MONTHLY EXPENSES. $3.06MONTHLY CASHFLOW. 5.13%PRO FORMA CAP$5,896.00. NOI. $25,000.00TOTAL CASH NEEDED. 0.15%CASH ON CASH ROI. 5.13%PURCHASE CAP RATE. ExpensesIncome50% Rule
| Total operating expenses: | $708.67 |
| Mortgage expenses: | $488.27 |
| |
| Vacancy: | $60.00 | Repairs: | $60.00 |
| CapEx: | $36.00 | HOA: | $336.00 |
| Insurance: | $50.00 | P&I: | $488.27 |
| Property Taxes: | $166.67 |
$115,000PURCHASE PRICE
| Purchase Closing Costs | $2,000.00 |
| Estimated Repairs | $0.00 |
| Total Project Cost | $117,000.00 |
| After Repair Value | $115,000.00 |
| Down Payment | $23,000.00 |
| Loan Amount | $92,000.00 |
| Loan Points | $0.00 |
| Amortized Over | 30 years |
| Loan Interest Rate | 4.900% |
| Monthly P&I | $488.27 |
| Total Cash Needed | $25,000.00 |
