Wholesale Duplex Foreclosures SW Florida
As we all look for the holy grail of investment property in this crazy real estate world, one is sticking out that is working phenomenally well for our own portfolio and also our investors. In Lee County, a massive amount of duplexes were built during the boom to offer lower rent figures since building 2 units together (duplex) is cheaper than building 2 single family homes. Lehigh Acres was a main target for this program due to its inexpensive multi-family zoned land.
Fast forward to 2008-2009 when many of these duplexes went into foreclosure. Built during the boom for nearly $300,000, we can buy directly from the banks today at pennies on the dollar. There are a lot of companies claiming to be “direct” with the bank and some wholesalers who offer duplexes. Could be true, but I can tell you with utmost confidence that we are your source for the most affordable duplex foreclosures available. We get the REO’s direct from the bank, and wholesale them to homeowners and investors at exclusive prices. Due diligence has shown that duplexes in this area that are completely rent-ready and in no need of repair retail for just under $100,000. Our are turn key and ready to go.
Each duplex will gross around $1,300 per month in rent ($650 per side). We do not recommend at this time paying more than $100,000 for the duplex, so if you can buy for under $100,000, your rate of return is higher than 10%, and also gives you some leverage in the event you have a vacant month. The goal is to achieve a 10% Cap rate or rate of return on the duplex. Anything higher than $100,000 does not give you enough equity, in our opinion.
Most of our duplexes are built 2005 and newer and are located in very precise areas. We do not believe that every REO out there is a good deal. We are specific and want to maximize the future equity potential by its location. Most duplexes are 3 bedrooms, 2 bathrooms, and some have 1 car garages per side.
Here’s how the numbers work:
| CASH | FINANCED @ 70% LTV | |
| Purchase Price | $85,000 | $85,000 |
| Closing Costs | $600 | $2,800 |
| Cash Out of Pocket | $85,600 | $28,300 |
| Monthly Debt Service | $0 | $420 |
| Escrowed Taxes | $200 | $200 |
| Escrowed Insurance | $85 | $85 |
| Monthly Lawn Service | $60 | $60 |
| Property Management | $105 | $105 |
| Total Monthly Expenses | $450 | $870 |
| Monthly Rental Rates | $1,300 Total | $1,300 Total |
| Surplus Cash / Positive Cash Flow |
$850 | $430 |
| Annual Net Operating Income | $10,200 | $10,200 |
| Capitalization Rate | 12% | 12% |
We are the most exclusive foreclosure wholesale real estate firm in SW Florida.
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