Real Estate

Pros & Cons of 125 Links Terrace Blvd, Daytona Beach, FL 32124

Investing in real estate can be a rewarding venture, and this stunning 2023-built Meritage home in the LPGA community presents a unique opportunity. With its spacious layout, modern amenities, and prime location near golf courses, shopping, and the beach, it offers a lifestyle upgrade that many seek. However, potential investors should weigh the financial metrics carefully, as the cash on cash return is slightly negative, and monthly cash flow is also in the red. Despite these concerns, the property boasts a solid cap rate of 6.7% and a net operating income of $2,444, making it an attractive option for those willing to navigate the initial financial hurdles.

What are the Pros of 125 Links Terrace Blvd, Daytona Beach, FL 32124?

  • Prime location near golf courses, shopping, and the beach enhances rental appeal.
  • Modern amenities and spacious layout attract high-quality tenants.
  • Cap rate of 6.7% indicates potential for good long-term returns.
  • Move-in ready condition reduces initial renovation costs.
  • Serene water views and outdoor spaces enhance property value.

What are the Cons of 125 Links Terrace Blvd, Daytona Beach, FL 32124?

  • Negative cash on cash return of -0.2% may deter some investors.
  • Monthly cash flow is slightly negative at -$11.
  • High gross rent multiplier of 13.5 suggests a higher purchase price relative to rental income.
  • Ongoing HOA fees and insurance costs can impact profitability.
  • Initial investment may require additional capital for unforeseen expenses.

What are potential Red Flags or Risks with 125 Links Terrace Blvd, Daytona Beach, FL 32124?

  • Market fluctuations could affect property value and rental demand.
  • Negative cash flow may strain finances if not managed properly.
  • Dependence on local amenities and economic conditions for tenant retention.
  • Potential for increased HOA fees in the future.
  • Competition from new builds in the area could impact rental rates.

Property Details for 125 Links Terrace Blvd, Daytona Beach, FL 32124

Property Detail Name Property Detail Value
Address 125 Links Terrace Blvd, Daytona Beach, FL 32124
Property Type Single Family
Price $435,000
Price Change $0
Tax Assessed Value $45,000
Non Owner Occupied? Yes
Pre Foreclosure Auction No
Bedrooms 4.0
Bathrooms 3.0
Living Area 2,360.0
Lot Area 5000.0
Lot Area Unit SQFT
Year Built 2023

Weighing the Investment Potential

In conclusion, this property presents a mixed bag of financial factors for potential investors. On the positive side, the cap rate of 6.7% and a net operating income of $2,444 suggest that, with the right management, this home could yield solid returns over time. However, the negative cash on cash return and slightly negative monthly cash flow indicate that investors may need to be prepared for initial financial challenges. Ultimately, the decision to invest should be based on a thorough analysis of both the immediate costs and the long-term potential of this desirable property.

Financial Summary for 125 Links Terrace Blvd, Daytona Beach, FL 32124

Financial Metric Name Financial Metric Value
Cash on Cash Return -0.2%
Monthly Rent $2,688
Net Operating Income $2,444
Cap Rate 6.7%
Monthly Cash Flow -$11
Gross Rent Multiplier 13.5
Debt Service Coverage Ratio 1.1
Principal and Interest $2,190
Tax $265
HOA Fees $113
Insurance $131
Total Payment $2,699