Home Ownership in Boca Raton>Question Details

tommy.nguon, Home Buyer in Orlando, FL

Student housing condo

Asked by tommy.nguon, Orlando, FL Fri May 17, 2013

I am looking to invest in condos within 2 miles of FAU to rent to graduate students. It has to generate cash flow. Are there any REOs that I can looking into. Please help.

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You may be able to find available condos in Boca Raton within 2 miles of FAU, and you may end up with a cap rate of around 10% based on rental rates.

However, after taxes (2% of what you pay for the unit), plus monthly condo fees of at least $250 per month) your cash on cash return is likely to be in the 6-7.5% range. And that does not take into account miscellaneous expenses such as repairs, appliance contracts, vacancies, or liability insurance.

REOs, if they are available, are sold for cash to the highest and best bid. In the current real estate market, REOs often sell from 10-20% above list price.

When you purchase a condo unit in the area, make sure that the condo rules allow for immediate rental. Some condos have a mandatory 1-3 year ownership period before they allow rental of the unit.

Also, in case you were thinking of putting 4 students into a 2/2 condo unit, check the condos rules concerning the number of unrelated individuals who can live in a rented dwelling.

Marc Jablon, The Jablon Team
RE/MAX Complete Solutions
JablonTeam@gmail.com
561-213-6139
http://www.JablonTeam.com
0 votes Thank Flag Link Fri May 17, 2013
As others have mentioned, there are a few investment properties by FAU and you should be prepared for competition, multiple offers on the same property, short list to close lead times and sparse inventory selection.

All cash, full price offers are fairly regular in this marketplace, so bear this in mind when planning your investment procurement strategies.

Boca's rental market is active year round thanks to the universities, snow birds and regular migration of professionals and retirees looking to call Boca home, so the demand side of the equation won't be an issue for you.

What type of cash flow, NOI, cash on cash return, etc. are you aiming for? I understand that you intend to buy and hold for the purposes of generating rental income, do you have a target payback period you are aiming for?

I work with a company that has it's own Short Sale and REO divisions and depending on your financial objectives, I could give you sense of whether or not your investment goals are achievable and sustainable in relative short order if you'd like.

In any event, I wish you the best of luck in your investment endeavors.

Regards,

Scott Miller
Weichert Realtors-Boca Raton
FreeAptFinder@gmail.com
TEL: 561.948.APTS
(2787)
0 votes Thank Flag Link Fri May 17, 2013
Hi Tom,
Yes there are some available. I just sold two duplexes nearby to investors wanting to rent to students. Foreclosures do not last long, accept offers on the 10th day get multiple offers over list price and that's how the market is going. Feel free to contact me to assist you is my office is right near
by,
Russ Greenberg, Realtor, ePro
561 445 8782
FLAhomemover@aol.com
0 votes Thank Flag Link Fri May 17, 2013
Hi Tommy,

There are a couple in the area & depending on how much you are planning to invest they might work out for you. I recommend you find a Realtor that can do that search for you and give you comps of how much they are renting in the area. There are several communities in the FAU proximity such as Centre Hill, Spanish Oaks, Casa del Rio, etc,

Let me know if I can be of further assistance.

Best regards,

Nitza Ramos
Realtor & Lic. Community Association Manager
East Coast Realty Group LLC
Direct: 954-856-3156
Fax: 954-934-9530
E-mail: ask4nitza@yahoo.com
Website: http://www.nrcv.com
**Blog: ask4realtor.blogspot.com
0 votes Thank Flag Link Fri May 17, 2013
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