This client came to me to purchase their first investment property in the US, in Brickell, with the goal of 5% ROI. For this to happen the property needed to be in move in ready condition, to minimize holding costs during transition periods, have at least 2 bedrooms, and be located in a well-managed and value oriented building.
ANALYSIS
After analyzing estimated purchase prices, turnover and holding costs, average days to rent, and expected gross lease values for over 30 properties, we narrowed the list to three Brickell condos. We ultimately chose Plaza 2606 because the numbers lined up.
PURCHASE & LEASE
It was purchased fully furnished, with minimal turnover costs. During the purchase process we prepped marketing campaigns, scheduled photos, and video for the apartment. We listed it for rent immediately after the purchase, for $5,000 per month. Within a few days we leased it for $5,200, breaking a price record for the building, and more than doubling the client’s goal with a 12% ROI from rental income alone.
When adding the estimated appreciation of the home based on historical price trends (excluding the past 2 years), we come to an ROI of 24% each year. It’s safe to say this client was quite happy with their first investment.
Buying a home is exciting, but it can be a bit daunting. As your Coldwell Banker affiliated agent, I have the knowledge, experience, and track record to help you avoid these common mistakes and smoothly guide you through every step of the home-buying process.
