I know this is mostly about the metro area, and for good reason: the value is right there in the purchase price/ gross rents ratio.
Once in awhile I see something in PB or OB that warrants a closer look just because of the price, this is one of them. Location: one block from the beach. Unit makeup: a two on one with two bedrooms each and two off street parking areas. Price: $339,000. Bank-owned. The person that previously owned this paid in the low to mid $800,000’s for this, over a 50% drop. For beach property, this is as good as it gets.
It’s bit of wreck, but not as bad as many that I’ve seen. Conservatively, you could rent out each unit for $1,500 for a total of $3,000 gross rents per month. Let’s say you put 20% down ($67,800) and your loan amount is $271,200. Let’s run it at 4.5%, your payment is $1,374.13 per month taxes about $310 per month, insurance another $100 or so for total of $1,784,10. So, pre management fee (usually 7% of the gross), you’re cashflowing roughly $1,216 per month. If you live in one of the units, your payment is $284 per month.
I mean come on. This does not take into account appreciation, where you could be looking at several hundred thousand in seven to ten years.
Let’s see either reduce your “rent” to less than $300 bucks per month, or be paid to own beach real estate and get a huge appreciation bump in the years to come. Awesome.
Catch is, this will sell for more than it’s listed. Multiple offers for sure, and it’s only been on the market for three days. And this does not take into account fixing up. Both units could be made very nicely rentable for $5,000 total for both. I think this one could shake out around $400,000 or so, tough to say.
You will never have a problem renting these out, just because of the location. Pretty sweet, condition notwithstanding.
