All Forum Posts by: Nicholas Candaffio

Hi BP,

I recently looked into a duplex deal in a C+ class neighborhood. The house had a major fire about 4 years ago and was not touched afterward. After being exposed to the Florida weather that long, there's nothing salvageable about the existing structure. I had talked to some people about the cost of tearing it down and rebuilding. I got quoted roughly $100/sqft ($160,000 to replace) and $10-$15k for the demolition. All that with cost to purchase the property would leave a total investment of $200,000. The problem is, other Duplexes in the area are being sold for less than half that.

My question is, how are people making money off situations like this? Is this just a quirk of my local market (Orlando) or is there something I'm not factoring in? Does new construction really appraise for that much more or are people just ok with putting in over market value so long as they're making positive cashflow? New Construction is low in my area, but it's not zero.

Thanks in advance.

Thanks @Joel Owens!

Hi Everyone,

I was wondering what cap rates Brokers/Investors are seeing right now for shopping plazas in the Orlando area? Specifically, grocery anchored in A-B+ neighborhoods if available.

Thanks!

Have you looked at the CFRI calendar? They host a general meeting for all of Central Florida once a month as well as county specific meet-ups

https://www.cfri.net/

If you find a property that does need a little more work and run into the problem @Bryan O. brought up, you might want to consider the FHA's 203k loan program.

It allows you to finance the purchase price and the cost of repairs with one, low, down-payment.

Thanks for the response @Joshua D.,

I can see why this would be a hard topic to write on. 

My first purchase was a short-sale, but it was at a price the bank had already approved for another buyer who couldn't close so it was relatively painless.

First post on BP!

I saw a post on this subject from about a year ago but there wasn't any response to it. Does anyone know of any good books foreclosure buying / auction buying? I'm looking for something that dives deep into securing and clearing title, types of liens and how to clear them, what to expect at auction, as well as how to work with the bank during pre-forclosure. Thanks in advance!