At a Glance:
9% YieldTenant in Place47% Below previous selling price$7,320 net projected cash flow per annum The Opportunity:The current state of the American real estate market is seen by many as a unique opportunity to purchase property at up to 70% below their previous sale prices.History tells us that some of the best investment opportunities present themselves in times of economic crisis. The current catastrophic financial meltdown of the banking sector is a prime example.The subprime lending practices of US banks has resulted in the foreclosure or repossession of property on an unprecedented scale. Over 6 million properties have been repossessed by US banks creating substantial demand for affordable rental housing for displaced families seeking a roof.Overall, since 2007 house prices have fallen by some 20%-40% dependent on the geographical location, but now prices are starting to stabilise and in many cases over the last twelve months, partial recovery has been seen.The economic turmoil has taken its toll and Florida now presents a compelling high yield based investment with the opportunity for long term capital growth.These opportunities are fairly common now, however as every investor knows, location is paramount to every successful property purchase.Why Fort Myers?This is why we are very proud to offer a selection of houses located in Fort Myers, Florida.Fresh Invest is focused on Fort Myers in South West Florida, which until 2006 was the fastest growing City in the US, based on population count.In Fort Myers unlike many other US Cities, the foreclosure problem was not driven by declining population it was driven by greed. Owners had seen their regions median home values soar from circa $100,000 to $300,000. The temptation to refinance and buy that dream car or boat proved too much for many.Many mortgage loans were fixed on low rates for only a couple of years. With the downturn many borrowers found their payments rising dramatically. The non recourse loans meant they could return the keys and rent a similar property for half the cost of their previous mortgage. However, many of these new tenants remain motivated to buy their own home again but have found that their credit rating is impaired.
The Fort Myers Rental Market:"Lee County´s rental market is a work in progress, but there is a silver lining - higher occupancy rates" (E Ganosellis 28.03.10) If you´re looking for a rental property in Lee County, then you may have a hard time trying to find one. According to news-press.com the Lee County Rental Market is Red Hot as more people are looking for affordable housing, Renting has become a very viable option, in some cases it´s the only option. Rental rates have been very low over the last two years but right now they are starting to see a rise.You´re Purchase Options:The easiest and quickest way to purchase your Fort Myers property with Fresh Invest is by buying on a cash basis. This avoids the mortgage application process and associated costs and we expect that your purchase will be complete within one month.Purchasing with a 60% Loan to Purchase PriceBy buying the property with a mortgage, the benefit is that the cash requirement reduces and the returns are measured against the deposit paid. We offer financing of 60% Loan to Purchase Price, subject to status, which we can process for you subject to an administration fee of $250. Against this benefit is the fact that you would need to complete a brief application form and provide supporting documentation.
Financial Breakdown:
Previous Selling Price: $153,300Current Price: $82,000Current Price as % of Original: 53%Square Footage: 1777Original Price per sq ft: $186Current Price per sq ft: $46Term of Lease: 1 yearYear Built: 2003Bed/ Bath: 3/2Purchase Price: $82,000Gross Monthly Rent: $900
Less Expenses
Management Fee: $90Property Taxes: $89Insurance: $51Total Est. Expenses: $290Net Income (monthly cash flow): $610Net Annual Projected Cash Flow: $7,320
