Many people would like to develop real estate portfolios that let them work from home. Some less adventurous but equally entrepreneurial would like own a duplex, live in one side, and rent out or sell the other side to leverage their finances. Some folks buy four-plexes and rent out three so their renters can pay off the house.
Here’s a website I ran across that would appeal to investors interested in investing in things like affordable housing, duplex, SW Florida, Equity, etc. (Please note… I’m posting this because it’s an interesting concept. If you decide to invest, you must do your own due diligence and not plunk down cold hard cash on the say so of a single blog entry!)
Here’s their view of the market in SW Florida for affordable housing:
As most investors are aware, the SW Florida real estate market has experienced tremendous growth and appreciation over the last few years. Although this growth has been extremely rewarding for most investors, it has also created a significant problem of affordable housing for the working class community.
Today, affordable housing is considered by many in government and industry as one of the most significant problems affecting the Florida market. Shop owners, restaurants, hospitals and schools are finding it extremely difficult to find employees because of the high cost of housing.
Although the affordable housing problem is significant, it also creates an excellent investment opportunity to enter the market during the front end of an affordable housing growth cycle.
We have found a group who has created a business model that helps address the affordable housing issue while also providing a significant investment opportunity to qualified investors
The proposed investment opportunity is for duplex housing in the cities of Lehigh Acres and Cape Coral in Southwest Florida.
Duplexes are two units, each approximately 1050 to 1200 square feet, with each unit having 2 bedrooms, den, 2 bathrooms and a 1-car garage on the smaller unit and 2 car garage on EACH SIDE on the larger unit.
Currently the all-in cost of the duplex project is approximately $285,000. The cost includes the land, building, and site improvements, closing cost and interest during construction. Make NO PAYMENTS DURING CONSTRUCTION.
The cost of the project can be financed with a construction loan at 85%-90% of appraised value. (LTV)
The current market price of the duplex today is between $325,000 -thus providing the investor with built in profit before construction begins. Because the market value is more than 10% higher than the necessary loan, this is done with very little money out of pocket which can be as low as just $1500 or as high as $5500.
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