New Smyrna Beach, Florida
Property has two homes on one parcel located in New Smyrna Beach that would rent for $4K per month combined.
Front house is 1,300 sq ft and can be expanded to 1500 sq ft and back house is 850 sq ft. Block construction with swimming pool and dock on Turnbull Bay which goes out to the ocean.
Both homes were livable but needed new kitchens, bathrooms and flooring. HVAC systems worked, but needed updating. Lot size .72 acres on a nice street of upscale homes with prices up to $800K.
Acquisition cost was $75K with leveraged private financing. Remodeling cost estimated at $100K with 60 to 80 days for construction.
After initially not reaching an acceptable target price for resale we deployed a fallback strategy of leasing out both homes to help cover carrying costs while the market continues to improve.