Real Estate

Pros & Cons of 40 Lake Walden Trl, Ormond Beach, FL 32174

Investing in real estate can be a lucrative venture, and the property on Lake Walden Trail presents a unique opportunity for potential investors. This custom-built waterfront home boasts a brand new roof and a stunning outdoor living space, making it an attractive option for those seeking both comfort and aesthetic appeal. However, while the property offers a solid cash flow and a favorable cap rate, investors should also consider the associated costs such as HOA fees and insurance. Balancing these financial factors is crucial for making an informed decision.

What are the Pros of 40 Lake Walden Trl, Ormond Beach, FL 32174?

  • Strong cash on cash return of 5.1% indicates good profitability.
  • Cap rate of 7.8% suggests a solid investment opportunity.
  • Monthly rent of $2,779 provides a reliable income stream.
  • Net operating income of $2,587 enhances financial stability.
  • Monthly cash flow of $337 allows for positive cash management.

What are the Cons of 40 Lake Walden Trl, Ormond Beach, FL 32174?

  • HOA fees of $72 can add to the overall cost of ownership.
  • Insurance costs of $120 may impact net income.
  • Principal and interest payments of $2,007 reduce cash flow.

What are potential Red Flags or Risks with 40 Lake Walden Trl, Ormond Beach, FL 32174?

  • Market fluctuations could affect rental demand and property value.
  • Maintenance costs may increase due to the property's age and features.
  • Potential for vacancies could impact cash flow stability.

Property Details for 40 Lake Walden Trl, Ormond Beach, FL 32174

Property Detail Name Property Detail Value
Address 40 Lake Walden Trl, Ormond Beach, FL 32174
Property Type Single Family
Price $399,000
Price Change -$15,000
Tax Assessed Value $298,368
Non Owner Occupied? Yes
Pre Foreclosure Auction No
Bedrooms 4.0
Bathrooms 3.0
Living Area 1,919.0
Lot Area 6969.6
Lot Area Unit SQFT
Year Built 1994

Weighing the Financial Pros and Cons of Your Investment

In conclusion, the property on Lake Walden Trail offers a compelling investment opportunity with its attractive financial metrics. The strong cash on cash return and cap rate indicate that this property can generate a solid income stream, making it a worthy consideration for investors. However, it is essential to remain mindful of the ongoing costs, such as HOA fees and insurance, which can impact overall profitability. Additionally, potential risks like market fluctuations and maintenance expenses should be factored into your decision-making process. Ultimately, conducting thorough due diligence will help you determine if this property aligns with your investment goals.

Financial Summary for 40 Lake Walden Trl, Ormond Beach, FL 32174

Financial Metric Name Financial Metric Value
Cash on Cash Return 5.1%
Monthly Rent $2,779
Net Operating Income $2,587
Cap Rate 7.8%
Monthly Cash Flow $337
Gross Rent Multiplier 12.0
Debt Service Coverage Ratio 1.3
Principal and Interest $2,007
Tax $243
HOA Fees $72
Insurance $120
Total Payment $2,442