GREAT DEAL ALERT – 5 unit – Boyle Hts – $1.3 mm – Off Market –

15421 Southwest 39th Terrace, Miami, FL 33185, USA

OK, here’s one that could work great in the hands of someone who knows what they are doing and who is willing to work with Section 8 tenants. Here is how it goes:


You have 5 units right now. Two 2/1s, two 1/1s and one 3/2. One of the 2/1s and the 3/2 will be delivered vacant. The remaining three have all been approached about ‘cash for keys,’ and all are amenable. Nothing has been fully resolved but they all appear to be willing to accept a reasonable relocation fee. Could be as little as $15K each, but better to underwrite at $30K each just to be safe. If you round it up to a total of $100K that is very safe. Then you are looking at spending no more than about $150K in renovations to get the units “section 8 rent ready.” (they are not in bad shape at all.)


All of this adds up to approx $250k to stabilize the building. Add that to the $1.3 mm to purchase and you are ‘all in’ at $1.55 million. The income will be at $13,000. That ends up being a 7.0 cap, thus leaving you with approx $3K/mo in cash flow.


Then, the “icing on the cake,” so to speak, will be when you convert the two garages in the rear to single ADUs. That will be a financial outlay of another $100K total that will yield an additional $3700/mo in income. Now you have a return that is really something to crow about. Now your cash on cash return will be almost double at $5500//mo. You will be at $1.65 million ‘all in’ but having an income of $16,700/mo. That is an 8.4 cap. Yes, you will eliminate off street parking, but your tenants are a very short walk to a metro stop.


OK, there it is. I am starting to see more and more of these opportunities. Let’s take advantage.

Give me a call.

Best, Ken Shapiro
Broker/Owner Silverwood Properties
Property Map

Similar Properties