Cash Flow Fridays, Real Estate Investment in Fort Lauderdale April 19, 2013

Cash Flow Friday’s is a weekly blog post that focuses on available real estate investment in Fort Lauderdale.   These posts are geared towards those who are looking to purchase real estate for investment purposes.  All properties that are featured will have positive cash flow.  Any property presented will be in an area, or complex, where rental demand is high so risk of rent loss to the owner is as low as possible. It is assumed that these purchases will be cash buys.  For a detailed analysis of cash on cash returns where a portion of the transaction is financed please email or call me.  The search area for my investment clientele will span from I-95 East to the Atlantic Ocean.  We will use Oakland Park Boulevard as our Northern Border, and 595 as our Southern border.  The search area will include Wilton Manors, Coral Shores, Lake Ridge, as well as my typical coverage area in Fort Lauderdale.

Today’s real estate investment in Fort Lauderdale is located in the Village at Sailboat Bend.  The property address is 1332 SW 2nd Court.  This is a fantastic townhome (townhouse) unit!  The Village at Sailboat Bend is a complex of townhomes (townhouses) that was built in 2006.  They are really nice!  These are three story townhome units located on the western edge of Sailboat Bend.  Units in the Village at Sailboat Bend are spacious, this one has a living area of 1,977 square feet.  This is a 3 bed 2.5 bath townhome.

Village at Sailboat BendOur featured real estate investment in Fort Lauderdale today has been fully upgraded with granite counter tops, wood floors and cabinets, along Village at Sailboat Bend 1with stainless steel appliances.  You want more features?  How about a wet bar (it’s ok it is Friday), jacuzzi tub, impact glass, and central air conditioning.  Looking for closets?  The unit has several walk in closets.  Finally there are two balconies you can walk out onto.

So why is this a great real estate investment in Fort Lauderdale?  Does it cash flow?

This townhome is listed by Florida’s Best Realty Service.  They have the unit listed for $299,000.

This leads to a listing price of $151 per square foot.  If you assume your all in building costs are $125 per square foot with this type of building we’re below builder cost once you add in land acquisition price.  Read that again, below builder cost!  This alone makes it a great value.Village at Sailboat Bend 2

Units in the complex in the same style are renting for $2,250.  So our yearly income is going to be $27,000.

We will say taxes will be 2% of the purchase price or $5980 yearly.

HOA fees are $452 monthly (or $0.23 per square foot).  This would be a $5424 yearly expense.

$27,000 – $11,404= $15,596 NOI / $299,000 purchase price results in 5.2% cap

I got a note from a mortgage officer at Wells Fargo earlier this week where he said they would finance 80% on a primary residence and 75% for investors or second homes.

Once you add in some leverage you can push 7-8% cash on cash returns for a unit built in 2006, that you’re acquiring for below builder costs, located a few stop lights from Downtown Fort Lauderdale!  Contact me today to set up a showing, this will sell quickly!

I work as a real estate specialist in a small area of Fort Lauderdale. If you’re interested in buying or selling a home, condominium, or townhouse (townhome) in: Rio Vista, Victoria Park, Downtown Fort Lauderdale, Fort Lauderdale Beach, Harbor Beach, Lauderdale Harbors, Sailboat Bend, Tarpon River, Croissant Park, Collee Hammock, Seven Isles, Nurmi Isles, Idlewyld, or Las Olas Isles, please feel free to contact me at (786)443-7203 or through my email caseyprindle@gmail.com.  I am a Realtor that works on Saturdays to accommodate those with busy schedules.

Veniceofamericahomes.com is a trusted source for real estate trends, statistics, and data, as well as aesthetics.

Written By Casey Prindle

About Casey Prindle

I am a Realtor with Esslinger Wooten and Maxwell in Fort Lauderdale. I track real estate data, sales, trends, and everything in between that happens in Southeast Fort Lauderdale. I live with my girlfriend and our adopted dogs in the great city of Fort Lauderdale.