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Buy & (almost) Forget – NNN Condo Leaseback in Tampa. $6750 Net Ann. Cashflow

$ 234,500 Asking
8813 US Hwy 41 S,
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Rented
SOLD

Overview

  • Updated On:
  • June 2, 2021
  • Year Built: 2007

Property Description

See discussion and additional Q&A in the comments section below

MUST-READ

  1. The suggested Simply Do It (SDI) offer/prices are based on group purchases and multiple offers submitted to the same seller – GROUP POWER.
    1. Suggested offer prices HAVE NOT been negotiated yet – prices are not confirmed.
  2. Priority will be given to investor-buyers that are able to buy multiple condos. 
    1. One buyer can buy all 9, or  9 buyers can each buy one and anything in between.
  3. The asking price is $234,318/condo – our goal is to offer $220,000/condo as a group (we may even try a more aggressive offer)
  4. Actual address: call/email/ask us.

 

UPDATE [4/14/2021]

We have a local lender that knows the project and is able to finance it. 

 

The benefits

  • The seller will lease back the unit(s) for 2 years.
  • The seller will also pay for all taxes, condo fees, utilities, maintenance.
  • The seller has an option to extend beyond 2 years.
  • The building was built in 2007.
  • Units are located on the 2nd floor.
  • The benefit to the owner during the lease period: No tenant issues, No maintenance issues/costs, No vacancy issues, and No collection issues! – A passive real estate investment.
  • Cash flow based on leaseback rent is excellent.
  • Tampa is a great metro and growing strong.
    • SDI has not offered any investment properties in Tampa for approx. 2 years as this is a tough metro for cashflow.
  • Annual rent (leaseback): $17,573
  • Local property manager feedback: had only great things to say about the location.
  • Very close to downtown Tampa.
  • The area is well developed and good access to shopping and highway.
  • Buyer CAN exercise self-manage and a property management co. is in place should buyer would rather use a PM.
  • This can also be a good fit for someone who is doing a 1031 exchange.
  • Very small cute community with a small shopping strip – very quiet.
  • Close to a little water-front park
  • Very central location
    • 10-15 minutes to the airport
    • 20-25 minutes to the downtown Tampa

 

The Cons

  • Based on market current rent and high COA, the cashflow w/o the leaseback is -$340/month – hence offer-pricing mitigation.
  • High monthly association fee

About The Building

  • # of units in building: 8 retail, 20 condos, 3 executive office-condos
  • COA fee: $476/unit/mo
  • Condos available for sale: 9 (2-Bdrm-2.5-Bath)
  • Parking spaces: there is no assigned parking to anyone.
  • Units are equipped with a high level of HVAC and water purification systems.
  • High-end construction
  • The property consists of Class A tilt-wall construction, fire wet sprinkler, an elevator (Building was painted in 2020)
  • All units have been recently remolded and are in excellent condition.
  • All units have new A/C systems (2019), newer water heaters, newer
    appliances, and new flooring on first floor.
  • The lessee conducts annual Mold Inspections with Air Samples.
  • HVAC systems are sealed air-tight with a 2-inch filter slot – They use Merv11 filters infused with carbon.
  • Lessee uses zero VOC paint
  • Units have Water Filtration: Under Kitchen Sinks, Under Bathroom Sinks, Shower Filters.
  • These units have never been occupied by smokers.
  • The building has an elevator

The Units

  • Located on the 2nd floor of the building
  • Each unit is 2 floors:
    • Lower level: kitchen, living room, 1/2 bath, balcony
    • Bedrooms and bathroom

 

Who is Leasing Back

According to the seller’s agent:

  • The Dr. who bought the entire building has 3 clinics on the 1st floor. He is a specialist, and his patients, who many come from afar, stay in the units. The Dr. offers healthy systems in these units.
  • There is a 1 yr waiting list to see this specialist.

 

Next Steps

  1. Let us know if you are interested, how many condos you would like to buy, and if you are buying cash or financing.
    1. We don’t have the exact unit numbers yet and cannot allocate units for the time being.
  2. Priority is given to SDI active investors.
  3. Non-active investors will need to sign the SDI fee schedule and release – can be sent upon request.
  4. Full address/location will be provided to active investors upon request.
  5. Questions should be posted in the comments section below.

Site Visits

A local rep. was able to see one unit, and had the following feedback:

  • The kitchen seems a bit dated
  • Carpets are old
  • First-floor flooring was updated to vinyl plank
  • Shower’s caulking has mold stains (not uncommon in a rental, but surprising in such a clean unit)

 

Open Items

  1. Any lending restrictions – waiting on lender’s answer.
  2. Estimated insurance rate per unit – waiting on ins. agent answer.

 

FAQ

  • Am I reading it right? no property tax and not HOA?
    • While under the leaseback period the tenant is paying for property taxes and COA (HOA). But this property HAS property taxes and COA.
  • Are the terms of the additional two years to be the same as the first 2-year lease period?
    • We don’t know yet.
  • Is the leaseback guaranteed?
    • NO
  • Has lease/rent validation been performed by Simply Do It or its local agent?
    • Not yet. But more lease research will be done after we have contracts.
  • Can I buy with a mortgage?
    • Yes, and we have preferred lenders for you to use if you wish.
  • Do you know the condition of each unit internally?
    • Not yet.
  • Do you have a local property manager we can use?
    • Yes, we sure do.
  • Can I buy cash?
    • Yes, of course.
  • Can I buy more than 1 condo?
    • Yes.

No leaseback Analysis (regular rental)

NO LB NNN TAMPA Condo

Download PDF

 

 

Analysis under leaseback Program

LeaseBack NNN TMP 9 Condos

Download PDF

 

Property Specifications
 Bedrooms 2
 Bathrooms 2.5
 Square Feet 1420
 Year Built 2007
 Garage Size 0
 Schools Rating (on a scale of 0-10) A

The analysis below is based on a leaseback option

Purchase Assumptions My Offer
Asking $234,318
Suggested offer (low) $220,000
Suggested offer (high) $220,000
Suggested offer (options) $234,318
Land Value (%) 10%
Building Value (%) 90%
 Market Value (after improvements) $234,000
 Improvements (lower) $0
 Improvements (upper) $0
 Closing Costs $2,500
 Mortgage Costs $2,500
 Other Fees At Closing $0
 Total Cost $239,318

Financing Assumptions
 Down Payment (%) 25%
 Down Payment Amount $58,580
 Financed Amount $175,739
 Interest Rate 3.75%
 Mortgage Term (Years) 30
 Monthly Mortgage Payment $814
 Cash Outlay (Total Out of Pocket) $63,580

 

Financial Assumptions Monthly Yearly
Rent (upper) $1,465 $17,580
Rent (lower) $1,465 $17,580
 Property Tax Rate (Approx.) 0.00%
 Property Taxes $0 $0
 Insurance $90 $1,080
 Repairs $50 $600
Variable-Cost PM 9.0%
Property Management Fee $0 $0
 Leasing Fee 85% $0.0 $0
 HOA $0 $0
 Vacancy Rate 0.0%
 Total Fixed Expenses $140 $1,680
 Total Expenses (Fixed + Mortgage) $954 $11,446

 

Financial Analysis / Deal Attractiveness
Years: 5
 Cap Rate 10.7%
 Net Cash Flow $33,912
 Equity Increase $68,135
 Total Gain $102,047
 Average Cash Flow/Year $6,782
 Average Cash Flow/Month $565
 Average Gain/Year $20,409
 Average ROI 160.5%
 Annual ROI 32.1%
 Projected Property Value $284,697

 

Disclaimer

Information contained herein was obtained from sources deemed reliable, however, Simply Do It and/or the owner(s) of the property make no guarantees, warranties or representation as to the completeness or accuracy thereof. The presentation of the property is offered subject to errors, omissions, changes in price and/or terms, prior sale or lease or removal from the market for any reason without notice.

The analysis is provided “As Is”. All the information is believed to be accurate (except for the small effects of some simplifying assumptions), but is not guaranteed, and depends on the values entered for the property. This analysis is intended for the purpose of illustrative projections. The information provided is not intended to replace or substitute for any legal, accounting, investment, real estate, tax, or other professional advice, consultation, or service. Simply Do It and/or the owner(s) are not responsible nor liable for any damages arising from the use of the analysis info.

Documents
Address: 8813 US Hwy 41 S
Area:
State/County:
Zip: 33578
Country: United States
Open In Google Maps
Property Id : 30052
Price: $ 234,500 Asking
Year Built: 2007
Garage: 0
Garage Size: 0
Rent (mo): 1455
Insurance (mo): 90
Repairs (mo): 50
walkscore9 / Car-Dependent more details here

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