Located in popular Longwood, this tremendous value-add opportunity of 20 units was previously operating as a motel. The property is on 2.25 acres of land, facing busy Highway 17-92 and beautiful Lake Kathryn in the back. Although the building is currently boarded, the upside to this opportunity is massive. 

We estimate an average of $15,000 per room in updates and an additional $150,000 for roof replacement, exterior paint, and resurfacing of the parking lot. Based on the location, we estimate a conservative weekly rate of $395 per room, once updated. 20 occupied units produce $34,000 in monthly revenue. Seminole County desperately needs affordable housing. Section 8 could be a possibility with this property as well. Seminole pays up to $1630 per month for efficiencies. 

Pro-forma Breakdown

Purchase price - $1,265,000

Closing costs - $15,000

Estimated rehab - $450,000

Total acquisition cost - $1,730,000

Income

Estimated monthly rent - $34,000

Estimated gross annual rent - $408,000

Estimated vacancy rate - 15% - $61,200

Expenses

Estimated maintenance - $24,000

Estimated utilities - $20,000

Estimated property taxes - $20,000

Estimated insurance - $20,000

Estimated management - $30,000

Total estimated net operating income - $232,800 - Estimated CAP rate 13.46%

Once stabilized, this could potentially sell at an 8% Market Cap Value of $2,900,000, based on location and high traffic volume.

Deals with this kind of cash flow opportunity are hard to come by, especially in this location. Call your EquityPro Advisor today to secure this deal.