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.
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 |
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 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 |