Income Property

Available/Pending /Closed NJREG FLORIDA Income Property

As many of you know, we also have a thriving business in Ft. Myers, FL.  Inquiries have picked up quite a bit lately as many sources including ourselves are touting the bottom of the Florida real estate market is here or near.  Income Property is literally 25% of the value it used to be and with the staggering amount of foreclosures since 2007, rental properties have become white hot.  See newspaper article here about our rental market.

The attractive lining in the SW Florida real estate investment property market is that prices are so low and rental rates are now stable, albeit much lower than peak.  Prices on real estate have fallen nearly 60% and rental rates have fallen about 35%, so positive cash flow is much easier to find today and prices are much more attractive for the real estate investor with a 5+ year window.  Let’s assume the market falls another 10%. Rental revenues will off-set or negate that loss as will future stability and incremental rental rate increases.  See below for some of our most recent steals we found for our New Jersey / New York investors.  Note: Financing is available but hefty down payments of 25% to 30% are typically required and recourse depends on many factors.

Please CONTACT US if you are interested in discussing any Florida income producing real estate.  Today is a great time to buy Paradise.

Package of 4 Duplexes  (Closed)

These duplexes are in eastern Lee County where we picked these up at an average of $70,000.  Each duplex needed approximately $5,000 in repair (appliances, paint, carpet/tile, A/C).  Each side is currently rented at $650 for a total of $1,300 per month.  Real Estate taxes run approximately $1,800 per year and Hazard Insurance $1,200 per year.  A great income generator providing a Capitalization Rate well above 12%.  Purchased as REO.  Original note per duplex:  $310,000.  Each side of the duplex is individually metered.

$15,600 Rental Revenue

$3,000 Annual Operating Expenses (no vacancy/ tenant pays utilities)

$12,600 Net Operating Income Generates a 16.8% Capitalization Rate

31 Acres Fully Entitled for Development, Ft. Myers, FL  (Closed)

We originally represented the sale of this property in 2005 and assisted in full entitlements and Development Order on this tract.  Consisting of 31 acres, we obtainted residential zoning with marina rights up to 120 boat slips.  33 homesites with 14 of them waterfront.  Purchased in 2005 for $10 million as Agriculture-zoned land and was re-appraised for $30 million upon Development Order in 2007.  Developer went into Bankruptcy and included this land in it.  Developer could not sell at the time due to market variables.

We re-represented the REO purchase from the lender who foreclosed and had an investor purchase for $2.5 million, a significant bonus from the original purchase.  Current market value:  $4.8 million.  NJREG assisted in the purchase in January 2010.

141 Fractured Condo Complex, Tampa, FL (Pending)

A 171 unit complex where we assisted and participated in the bulk purchase of 141 residential condos, including takeover of the HOA.  Purchased at $33,000 per door, these condos had an original sales price of $220,000 less than 4 years ago.  Current market value per door: $60,000.  Capital improvements and stabilization is in process where the capitalization rate upon stabilizing will be approximately 10%.

Acquired through private relationship.

Single Family Home – Purchased through bank REO

Acquired for $65,000.  Needed $5,000 interior renovations and landscaping.  Re-sold in 80 days for $94,000.

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