Descrição

Purchase Price: $100,000 (as-is, distressed condition requiring full rehab). Repair Costs: $40,000 (complete overhaul needed). All-In Cost: $140,000 (purchase + repairs; excludes closing, holding, or other fees). Potential Rental Income: $2,490/month ($29,880/year), cited as (Housing Choice Voucher) from Daytona Beach. Annual Expenses: Property Taxes: $1,092/year., Lawn Care: $600/year., Insurance: $1,800 (you listed this as "/month," but that would be $21,600/year Total Annual Holding Costs: $3,492/year (taxes + lawn + insurance). Cash or hard money only (flip contract, no conventional financing). Encroachment issue from neighboring property (buyer must accept; attorney is resolving). 5-day inspection period after contract with proof of funds. Optional management via One Key Management: 5% monthly fee for tenant placement + 1 month's rent upfront (not mandatory). Cap Rate Calculation in Description: $140,000 / $3,492 = listed as 21%. As-is offer: $93.81/sq ft (low for a fixer-upper) Annual Net Operating Income (NOI): Base: Rental $29,880 - Expenses $3,492 = $26,388. Adjusted: Rental $29,880 - Taxes $1,092 - Lawn $600 - Insurance $3,000 - Management (optional 5%) $1,494 = $23,694 (excludes upfront placement fee Cap Rate (NOI / All-In Cost; measures return on investment for hold): Base: $26,388 / $140,000 = 18.8% Fix-and-Flip Profit Potential: All-In Cost: $140,000 + Holding Costs (~$5,000 for 3–6 months utilities/insurance/taxes) + ˜ $145,000 total. Potential Profit: $200k sale - $145k costs = $55,000 (26% ROI); or $200k sale - $145k = $101,000 (65% ROI). Rule of Thumb: Aim for 70% of ARV minus repairs ($209k * 0.7 = $146,300 - $40k = $106,300 max buy price). At $100k, this passes. Break-Even Analysis: With adjusted NOI $23,694, the property covers costs at ~80% occupancy. Cash flow: ~$1,974/month pre-tax (strong for hold). No sellers disclosures available as neither party has lived in the home.