Pros & Cons of 280 SUNSHINE Drive, St Augustine, FL 32086

Investing in real estate can be a lucrative opportunity, and the property at this location offers a compelling mix of advantages and challenges. With a spacious Sanibel II floor plan featuring five bedrooms and three baths, this home is ideal for families or as a rental property. The recent installation of a new roof and upgrades to appliances enhance its appeal, while the attractive outdoor space with a pool and screened lanai provides a perfect setting for relaxation and entertainment. However, potential investors should also consider the financial metrics, such as a cash on cash return of 3.8% and a cap rate of 7.5%, which indicate moderate profitability. Additionally, the monthly cash flow of $287 may not be sufficient for all investors, especially when factoring in expenses like taxes and insurance.

Weighing the Investment Potential

In conclusion, this property presents a balanced investment opportunity with both positive and negative financial factors to consider. The strong cap rate of 7.5% and attractive monthly rent of $3,002 suggest a solid income potential, making it appealing for investors looking for cash flow. However, the relatively low monthly cash flow of $287 and ongoing expenses such as HOA fees and insurance could limit profitability. Investors should carefully evaluate their financial goals and risk tolerance before proceeding, as the local market dynamics will play a crucial role in the property's long-term success. Overall, this property could be a valuable addition to a real estate portfolio, provided that the investor conducts thorough due diligence.