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THE DOWNTOWN TARPON AVE. APARTMENTS (15-UNIT APARTMENT COMPLEX FOR SALE)- SELLER FINANCING!
Listing was updated at: 11/27/2018
Property Overview
Price/Rent PSF $ 999,000.00
Asset Type Multifamily
Trade Type Sale
SQ. FT. Available 6,928
Date Available 11/27/2018
Additional URL Link
Parking 17
Floors 2
Additional parameters Show
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Description

Location
THE TARPON AVENUE APARTMENTS SIT IN A PRIME LOCATION IN DOWNTOWM TARPON SPRINGS! TARPON IS THE MAIN ROAD IN DOWNTOWN TARPON SPRINNGS, WHERE MOST OF THE CITY’S BEST RETAIL SHOPS, RESTAURANTS, AND RESIDENTIAL RENTAL UNITS ARE LOCATED. TARPON SPRINGS OVERLOOKS THE GLISTENINNG ST. JOSEPH SOUND, OFF THE GULF OF MEXICO. WHILE TARPON SPRINGS IS FAMOUS FOR ITS HISTORICAL LANDMARKS AND TOURIST ATTRACTIONS, TARPONS SPRINGS IS MOST NOTORIOUS FOR ITS LARGE RESIDENTIAL POPULATION ALONG FLORIDA’S GULF COST. THE CITY HAS AN AVERAGE RESIDENTIAL RENTAL RATE OF APPROXIMATELY $1,294 PER MONTH, AND ALMOST 45% OF THE RESIDENTS ARE RENTERS. THIS BODES WELL FOR PROPERTY OWNERS IN THE AREA AS SO MUCH OF THE POPULATION ARE NON-HOME OWNERS. TOURIST ATTRACTIONS AND LAND MARKS INCLUDE FRED HOWARD PARK, MULTIPLE ELEMENTARY SCHOOLS AND COLLEGES, SAINT PETERSBURG-CLEARWATER INTERNATIONAL AIRPORT, STAFFORD HOUSE MUSEUM, SUNSET BEACH, AND WOULD FAMOUS TARPON SPRINGS SPONGE DOCKS!

Sale
THE TARPON AVENUE APARTMENTS IS A 15-UNIT, TWO BUILDING, APARTMENT COMPLEX LOCATED IN DOWNTOWN TARPON SPRINGS, FL. THE PROPERTY HAS BEEN RECENTLY RENOVATED AND IS CURRENTLY 100% OCCUPIED. THERE ARE A TOTAL OF 15 1BEDROOM/1-BATHROOM UNITS ALL IN GREAT CONDITION. LOCATED ON THE MAIN DRAG IN DOWNTOWN TARPON SPRINGS, THERE IS FANTASTIC RENTAL DEMAND FOR THESE UNITS GIVEN THE BUILDINGS PRIME LOCATION. DUE TO THIS AMAZING LOCATION, THE PROPERTY VALUE WILL ONLY CONTINUE TO CLIMB AS THERE ARE VERY FEW APARTMENT BUILDINGS LOCATED IN THE HEART OF DOWNTOWN.

THE PROPERTY CONSISTS OF SEVERLY UNDER MARKET RENTAL RATES FOR THE AREA, MAKING THIS AN INCREDIBLE VALUE-ADD OPPORTUNITY FOR A BUYER. WHILE ALL TENANTS ARE CURRENTLY ON YEARLY LEASES, ALMOST 50% OF THE LEASES WILL EXPIRE, WITHIN THE NEXT 3-5 MONTHS. THIS CREATES THE PERFECT SITUATION FOR THE BUYER TO INCREASE THE RENTAL RATES OF THESE SHORTER TERM LEASES, WHILE KEEPING THE OTHER LEASES IN-PLACE FOR SECURITY. THE CURRENT RENTAL RATES ARE APPROXIMATELY $100-$150 LOWER THEN THE AVERAGE RENTAL RATE IN DOWNTOWN TARPON SPRINGS. THIS CREATES MASSIVE UPSIDE FOR A BUYER, WHO WILL BE ABLE TO INCREMENTALLY RAISE THE RENTAL RATES AT THE BUILDING AND INCREASE THEIR NOI.

GIVEN THE ABILITY TO INCREASE THE RENTAL RATES AT THE PROPERTY A BUYER CAN OBTAIN A CAP RATE OF NEARLY 10% AND A CASH-ON-CASH RETURN OF OVER 20% BY 2019! THE TARPON AVE. APARTMENTS HAVE SO MUCH UPSIDE; YOU RARELY SEE AN APARTMENT COMPLEX, IN THE HEART OF DOWNTOWN, FOR SALE WHERE A BUYER CAN EASILY OBTAIN A 10% + CAP RATE JUST BY RAISING THE RENTAL RATES TO THE AVERAGE MARKET RATE! THIS OPPORTUNITY WILL NOT LAST LONG!


THE BEST PART IS THE FACT THAT THESE RENTAL RATES CAN BE INCREASED WITHOUT SPENDING MUCH ON PROPERTY IMPROVEMENTS. IN THEIR CURRENT CONDITION, THESE UNITS SHOULD BE RENTING FOR AT LEAST $100-$150 MORE PER MONTH, THEN THEY CURRENTLY ARE.

THE VALUE-ADD COMPNET TRULY COMES INTO PLAY IF A BUYER WERE LOOKING TO SIGNIFICANTLY UPGRADE EACH UNIT. IN THIS SCENARIO A BUYER COULD IMPROVE THE INTERIOR OF EACH UNIT AND SIGNIFICANTLY INCREASE THE RENTAL RATES AT THE PROPERTY. NEWLY RENOVATED 1-BEDROOM/1-BATHROOM APARTMENTS ARE RENTING FOR AN AVERAGE OF $750-$850 PER MONTH CURRENTLY IN DOWNTOWN TARPON SPRINGS. THIS WOULD CREATE MASSIVE LONG-TERM UPSIDE FOR AN INVESTOR, AS THE INCREASED RENTAL RATES WOULD DRASTICALLY INCREASE THE TOTAL INCOME GENERATED AT THE PROPERTY. USING THE SELLER FINANCING OPTION, THE BUYER CAN TAKE ADVANTAGE OF THE EXTREMELY LOW MONTHLY DEBT SERVICE PAYMENTS AND USE THE EXTRA CASH FLOW TO SIGNIFICANTLY UPGRADE EACH UNIT.

IN EITHER SCENARIO, THE CURRENT RENTAL SITUATION AT THE TARPON AVENUE APARTMENTS CREATES A UNIQUE OPPORTUNITY WITH MASSIVE UPSIDE FOR AN INVESTOR. THE ABILITY TO PURCHASE A PROPERTY SEVERELY UNDERVALUED IN THE HEART OF DOWNTOWN TARPON SPRINGS DOES NOT COME AROUND VERY OFTEN! ESPCIALLY WITH THIS MUCH LONG TERM POTENTIAL!



ONE OF THE BEST FEATURES OF THIS DEAL IS THE FACT THAT THE SELLER IS WILLING TO OFFER THE OPTION OF SELLING FINANCING. THE AMAZING TERMS THE SELLER IS OFFERING (50% DOWN PAYMENT, 30-YEAR AMORTIZATION, 2-YEAR BALLOON, 4.75% FIXED IR, INTEREST ONLY PAYMENTS) ARE BETTER THEN YOU WILL FIND AT ANY BANK IN TOWN! THESE TERMS WILL ALLOW THE BUYERS CASH-ON-CASH RETURN TO SKYROCKET, ESPECIALLY AFTER THE RENTAL RATES AT THE PROPERTY ARE INCREASED.

FURTHERMORE, THE SELLER IS OFFERING THE OPTION OF INTEREST ONLY PAYMENTS, GIVING THE BUYER THE ABILITY TO DECREASE THEIR MONTHLY DEBT SERVICE PAYMENT WHILE INCREASING THEIR OVERALL RETURN! USING THE INTEREST ONLY OPTION, THE BUYER CAN OBTAIN AN INSANELY LOW MONTHLY DEBT SERVICE PAYMENT OF UNDER $2700 PER MONTH!

LASTLY, THE FACT THAT THE RATE IS FIXED ALLOWS THE BUYER TO KEEP THE EXACT SAME RATE FOR THE FULL LIFE OF THE LOAN, WHICH IS ALMOST IMPOSSIBLE TO FIND USING CONVENTIONAL FINANCING IN THIS MARKET! YOU CANNOT FIND TERMS LIKE THIS ANYWHERE IN THIS MARKET, AND AS INTEREST RATES RISE, THE ABILITY TO LOCK IN AN AMAZING RATE ONLY ADDS TO THE MASSIVE UPSIDE THIS PROPERTY HAS!



THE PROPERTY WAS RECENTLY RENOVATED IN 2017 AND 2018. THE RECENT RENOVATIONS INCLUDE BUT ARE NOT LIMITED TO; ROOFS ON BOTH BUILDINGS WERE REPLACED IN 2016, UPDATED WINDOW A/C UNITS IN ALMOST EVERY UNIT, NEW LAMINATE FLOORING, BATHROOM & KITCHEN UPGRADES, EXTERIOR AND INTERIOR PAINT, AND NEW HOT WATER HEATERS. ALSO, THE PLUMBING AT THE PROPERTY IS IN GOOD WORKING CONDITION AND UPDATES TO THE PLUMBING WERE MADE IN 2017 TO BOTH BUILDINGS. THESE RENOVATIONS ALONE WILL ALLOW A BUYER TO INCREASE THE RENTAL RATES ON-SITE WITHOUT SPENDING MUCH CAPITAL INITIALLY!

THE PROPERTY HAS AN ON-SITE LAUNDRY ROOM THAT IS CURRENTLY FREE FOR TENANTS TO USE. ONE WAY TO MAXIMIZE THE UPSIDE THIS PROPERTY HAS, IS TO MAKE THE LAUNDRY MACHINES COIN-OPERATED, WHICH COULD PRODUCE AS MUCH AS $4,000 A YEAR IN EXTRA INCOME AT THE PROPERTY! TENANTS ARE RESPONSIBLE FOR ALL ELECTRIC EXPENSES AT THE PROPERTY, WHILE THE OWNER PAYS FOR ALL WATER, SEWER AND TRASH ON-SITE. ALL UNITS ARE SEPARATELY METERED AS WELL!

Location

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