smart investing built in equity, positive cashflow

smart investing built in equity positive cashflow

 
The Dolphin
A unique two story 4 bed 2.5 bath was designed to give maximum square footage at a greatly reduced price, so the numbers will make sense while still being attractive to potential renters. Total square footage has come in at 1,588 after final plan drawing.

Amenities

Getting your property rented quickly, and keeping a tenant long term to avoid vacancies is our goal. That’s why we didn’t strip these homes out. They’re outfitted with a metal roof (50 years vs 25 year shingle), hurricane impact glass windows, 25 year commercial grade vinyl plank flooring, granite tops, upgraded appliances, and more to make sure tenants will love this home. 

Free Management

The numbers are already great, but as an appreciation and congratulations on building your new investment property, Douglas Realty will manage it FREE for the first 6 months after a tenant is placed. 

Financing

Investor financing is back with 15% down, and getting an end loan on one of our homes is a quick and easy process. Rather than do complicated and expensive CP loans, we front the capital to build the home, then you close at the end. This home is turnkey at $197,500 with 40k down…lot and impact fees included. No limit to properties owned! 

Locations and Time

The Dolphin will do exceptionally well in areas we have already predetermined with comps. Port Charlotte, Lehigh Acres, and Cape Coral are all cities in need of 4 bedroom homes. Build time is estimated at around 7 months from the start date. 

The numbers.

*All of our estimates are conservative and based on current market rents and interest rates*

$197,000 Purchase price

$39,580 Down payment (20%)

= $158,320 Mortgage (6% interest)

$949.81 Monthly payment

+$125 Taxes

+$150 Insurance

+8% Management fee

=$1,408 PITI

Rent $1,650

Expense $1,408

=$242 cash flow x 12 months= $2,904 per year

$2,904/$39,580 = 7% CAP

 

*All of our estimates are conservative and based on current market rents and interest rates*

$197,000 Purchase price

$39,580 Down payment (20%)

= $158,320 Mortgage (6% interest)

$949.81 Monthly payment

+$125 Taxes

+$150 Insurance

+8% Management fee

=$1,408 PITI

Rent $1,650

Expense $1,408

=$242 cash flow x 12 months= $2,904 per year

$2,904/$39,580 = 7% CAP

The Dolphin (1)
The Majestic
A unique two story 2/1-3/1 duplex. Rather than a traditional ranch style single story duplex, the coach style two story is a proven design. Perfect for large families that want to split space, or easy for two separate tenants as they each have their own entry (top floor entrance is against right wall of left garage). The second story has an extra bedroom to pull higher rent, and give more options to potential renters.

Limited Supply

Multi-family lots are extremely limited, especially ones in a good price range and location. We have narrowed down a specific area within South Gulf Cove of Port Charlotte where lots are affordable and make the numbers extremely attractive. If you’re interested, act quickly as these lots simply won’t be around for long! 

Amenities

The Majestic features the same amenities as our other properties. It’s hard to find a duplex that doesn’t have carpet in the bedrooms or cheap counter tops and cabinets. This blows the competition out of the water with what’s inside. Built to be “tenant proof” we’ve made sure everything down to the easy to clean Behr paint is focused on saving you money. 

Financing

The same investor financing is available with this property. The Majestic is turnkey at $289,900 with 45k down…lot and impact fees included. No limit to properties owned!

Locations and Time

The lots located in South Gulf Cove are currently listed at an attractive price that really make the numbers superb. We’ve identified this as a superb rental area (Douglas Realty already manages existing property in the area). Estimated build time is at 8 months. 

The numbers.

*Estimates are conservative and based on current market rents and interest rates*

$289,900 Purchase price

$43,985 Down payment (15%)

= $231,920 Mortgage (6% interest)

$1,399 Monthly payment

$250 Taxes

$250 Insurance

$100 Lawn

$80 PMI

$210 (8%) Management

=$2,289

$2,745 Rent

-$2,289 Expense

$456= $5,972 Per year

$5,472/$43,485 Down = 12.5% CAP

 

*Estimates are conservative and based on current market rents and interest rates*

$289,900 Purchase price

$43,985 Down payment (15%)

= $231,920 Mortgage (6% interest)

$1,399 Monthly payment

$250 Taxes

$250 Insurance

$100 Lawn

$80 PMI

$210 (8%) Management

=$2,289

$2,745 Rent

-$2,289 Expense

$456= $5,972 Per year

$5,472/$43,485 Down = 12.5% CAP

Mejestic Duplex Brochure
Flipping for Big ROI
These are excellent buy and hold properties as stated in the above numbers. However, for those looking to flip their property for a quick profit, the Dolphin is an excellent choice to make 68% ROI in just 9 months with only 15% down!
Flipping the Dolphin
An investor has 2 options with the Dolphin using the 15% down loan program. Option1: Do not close with the lender when house is at CO. Why? It is cheaper to pay interest on the construction loan from the builder’s line, than 4.5% lenders closing cost. The investor needs to agree to pay the monthly construction interest after CO of $1400 a month to the builder each month until loan closes. Average selling time in Cape Coral under $250,000 is 120 days. Option 2: As an exit strategy, you can close the loan and rent the Dolphin for $1600+ a month.
The Dolphin is a great home to consider flipping especially using the 15% down payment loan. The market sales price is $235,000 minus investors price $204,900 = $30,100 gross profit. Subtract 4% R.E. sales commission from the $235,000 = $225,600

  $225,600 Sale price (less the 4% R.E. commission)

-$204,900 Investor’s Purchase price

 $ 21,700 net profit or 67.5% ROI in 9 months.

Call-Text-Email: Kevin

239-229-7931

khaag@douglasrealty.net

Learn why new construction is a smart investment.