Real Estate

Pros & Cons of 50 Ararat Dr, Palm Coast, FL 32137

Investing in real estate can be a lucrative venture, and this property offers a compelling opportunity for potential investors. Priced at $387,990, this modern home in a desirable community boasts impressive features such as energy efficiency, a spacious layout, and a prime location near the beach. However, while the property presents strong financial metrics like a 7.3% cap rate and a monthly cash flow of $182, investors should also consider the relatively low cash on cash return of 2.8% and the ongoing costs associated with ownership. Balancing these factors is crucial for making an informed investment decision.

What are the Pros of 50 Ararat Dr, Palm Coast, FL 32137?

  • Strong cap rate of 7.3%, indicating good potential for rental income.
  • Monthly rent of $2,502, providing a solid income stream.
  • Energy-efficient features that can lower utility costs.
  • Low HOA fees of just $200 annually, making community amenities affordable.
  • Prime location near Flagler Beach and local amenities, enhancing property value.

What are the Cons of 50 Ararat Dr, Palm Coast, FL 32137?

  • Cash on cash return of 2.8%, which may be lower than other investment opportunities.
  • Monthly cash flow of $182, which may not be sufficient for all investors.
  • Potential for fluctuating rental demand in the area.

What are potential Red Flags or Risks with 50 Ararat Dr, Palm Coast, FL 32137?

  • Market volatility that could affect property values.
  • Ongoing maintenance costs that could impact profitability.
  • Dependence on local economic conditions for rental demand.

Property Details for 50 Ararat Dr, Palm Coast, FL 32137

Property Detail Name Property Detail Value
Address 50 Ararat Dr, Palm Coast, FL 32137
Property Type Single Family
Price $387,990
Price Change $0
Tax Assessed Value $0
Non Owner Occupied? Yes
Pre Foreclosure Auction No
Bedrooms 4.0
Bathrooms 2.0
Living Area 1,817.0
Lot Area 7231.0
Lot Area Unit SQFT
Year Built 2024

Weighing the Investment Potential

In conclusion, this property presents a unique blend of advantages and challenges for real estate investors. With a strong cap rate and attractive rental income, it offers a solid foundation for generating cash flow. However, the lower cash on cash return and modest monthly cash flow may require investors to consider their financial goals carefully. Additionally, the location and community amenities add value, but potential risks such as market fluctuations and maintenance costs should not be overlooked. Overall, this property could be a worthwhile investment for those seeking a balance of luxury and practicality in a growing area.

Financial Summary for 50 Ararat Dr, Palm Coast, FL 32137

Financial Metric Name Financial Metric Value
Cash on Cash Return 2.8%
Monthly Rent $2,502
Net Operating Income $2,369
Cap Rate 7.3%
Monthly Cash Flow $182
Gross Rent Multiplier 12.9
Debt Service Coverage Ratio 1.2
Principal and Interest $1,954
Tax $233
HOA Fees $17
Insurance $116
Total Payment $2,320