Latest Deals on the market

Bella Piazza is one of the best deals on the market.  Some of the units have existing lease agreement and you will have guaranteed positive cash flow since day one of ownership...

Link

March 2009 Newsletter:   Compare with condos, Townhomes and Single Family Homes are attached to a piece of land, which usually do not depreciate, and will provide a nice bottomline insurance policy.   In another word, their price will not keep dropping (like condo) to the price of a car.    Typically, you will find foreclosed single family homes (without pool) for about $50/sqf in Disney areas.  You will need to add $20,000 for a home with pool.  With 35-40 cents on a dollar price and amazingly low mortgage rate (4.75% for 2nd home), positive cash flows is back again!  Here are the best three group of properties for you to consider.   1. Single Family Homes around Disney area (both Long-Term     and Short-Term Rental in Disney areas) 2. Emerald Island Resort (Short-Term-Rental in Disney area) 3. Toscana (residential Long-Term-Rental in Dr. Phillips)

Single Family Homes in Davenport (Hwy 27) and Kissimmee (Hwy 192) Typically, they are 4-5 years old, without furnitures, and can be rent out 70Cents/sqf per month.  You can either put the furniture in to do the short-term-rental or let us rent it on the long-term basis without buying funritures.    List of properties:   1. Single Family Home under $50/sqf (unit price, value) in Disney areas:  Link  (please use the draw down menu on the top left corner to see all the properties).    Please pay close attention to "1189 LIBERTY HALL DR".  3100sqf for $139k, with lake view and built in 2004.  No pool.  It is listed today and should be sold fairly quicly.  Liberty Village is 3 miles south of Hwy 192.  Good and quiet neighborhood.    2. Single Family Home under $130k (absolute price) in Disney areas: Link.    This list is a selected list of properties.  I am using more detailed listing format in this link, you should be able to see larger pictures by clicking on the front picture.     Rental Analysis:  Short-Term-Rental:  After deducting the operational expense, your income will be able to cover your PITI (Mortgage, Insurance, Tax) and HOA.      Long-Term-Rental: Your income will be 70cents/sqf per month or $8.4/sqf per year.  Considering the current price, you will have 12%-14% cap rate.  Since it is higher than the mortgage rate, you will have positive cash flow.  e.g. 100k 1800sqf Single Family Home, you can rent for $1200, your mortgage is $333/mo, property tax is $150, HOA is $20, Insurance is $80.  All other costs will be paid by the tenant.  You will have $300-400 net income per month! Emerald Island Resort (EIR) (we only sell bank-owned foreclosures) Emerald Island's "fire sale" will be over soon.  A group of loosely organized home buyers (called themselves BTB) bought about 61 single family homes in EIR between 3/06 and 3/07.  Most of the foreclosures are from those purchases.   I sold about 23 houses to them by representing the sellers in EIR.   I kept tracking all their purchases as of now to monitor the supply of foreclosures in the pipeline.  Please give me a call for this list and my analysis regarding when the foreclosures will be over in EIR and when the price will start to move. Current Listings: Link Location Map in relationship to Disney: Link Rental Analysis: 6,7 br homes are rented between $189-$259/nt (Low/Mid/High/Peak season)   after deducting the operational cost and PITI, you should expect a break even assuming 80% financing.

Toscana (we only sell bank-owned foreclosures) Toscana is a newly built residential community developed in 2006 by custom home builder Deluca Homes.    It is located in Dr. Phillips area, great location.  Best school zone in Orlando.    Cross the street from Universal, 5 mins drive to SeaWorld and 10 mins drive to Disney parks.  Right on the nationally famed "Restaurant Row".  Dr. Phillips area not only has this 24+ nice restaurants on Sand Lake Road, but also enjoy the fame of Bay Hill LGA Tour (Arnold Palmer Invitational).  Tiger Woods, Arnold Palmer have their permenent residences in this area too.    When Toscana was released, it attracted a large number of speculators since it was released in 2006.  We all know what happen to those speculators after the mortgage melt-down and house price free fall.  Above normal level of foreclosures has hurt the price in this community badly.  The good news is these foreclosures are been bought out by regular residence or bottom-fishing investors and the price should be back to par (the price level of similar neighborhood) very soon.   In other neighborhood, similar townhomes are selling for $400K or high $300ks and single family homes are selling for $70k-$100k higher.    Current Listings: Link Location Map Link Rental Analysis:    It is for Long-term-rental or your 2nd home only.  Short-term-rental not allowed.  The rental market is very active because of the excenllent school (Baymeadowns elementary, Southwest Middle shcool and Dr. Phillips high school).  The rent is 85cents to $1/sqf per month.

Best Townhome Deals

Nationally, The Stimulis Bill and Treasury Plan have one of its major goals to support the housing market.  National Association of Realtors have worked diligently with the Administration to help "unclog the pipeline" and get capital flowing into housing again. (see Article 1) Regionally, with 35-40 cents on a dollar price and amazingly low mortgage rate (4.75% for 2nd home), positive cash flows is back again in the Orlando/Disney areas.  Here are the two best opportunities right outside Disney Maingate (see Crestwynd Bay and Paradise Cay foreclosures below)

How the Stimulus Package will help the Housing Market In summary, the package will have the following items to unclog the capital flow pipeline into the housing market: 1) the loan limits will be raised to $727,000 in high cost areas, 2) the tax credit will be raised to $8,000 with NO payback [a true credit], 3) interest rates have come down 125-150 basis points, and 4) the bill has over $50 billion in it for foreclosure mitigation, with Geitners Treasury plan signaling that the second half of TARP and TALF will be used to mitigate foreclosures through a government guarantee, drive down interest rates by buying another $200-300 billion of mortgage paper from the GSES's thereby freeing them up to do the same with new mortgages, and Fannie has just agreed to lift the cap of 4 investment properties eligible for loans and raise it to 10.   Crestwynd Bay Townhouse (we only sell bank-owned foreclosures) Crestwynd Bay (the pictures is of Compass Bay, which is exactly the same as that of Crestwynd Bay and Paradise Cay) is a 2 years new town home community built by KB Home.  Located right outside of Disney Maingate, between Westgate timeshare and Windsor Hills Resort.  A large swimming pool is situated at the heart of the community with children's play areas and grilling areas at select locations and entrance gates for added security. They were selling for low $200k and is now at $100k price level.  The rental is very strong since it is the closest residential or short-term-rental neighborhood to Disney among ALL.  IT IS OF THE BEST LOCATION! Disney employees, exchange students who work in Disney all need housing close by and you should be able to rent it for $900-1000 easily with very little risk of being vacant. Current Listings: Link Location Map in relationship to Disney: Link Rental Analysis: Monthly Net Rental Income: $900-$810 (after 10% Property Management Fee) Expenses: $718 (Mortgage 5%, 80% financing: $333; Property tax: $200 or less; Insurance: $60; HOA: $125) Net Cash Flow: $100-$200 per month (net rental income minus expenses) We will provide guaranteed lease back program for purchases in this subdivision.  Basically, we will pay mortgage (80% financing), tax, insurance, HOA for you.

Paradise Cay Townhouse (we only sell bank-owned foreclosures) It is built by KB Homes as well.  It is located off highway 192 in Osceola County, Paradise Cay offers residents a low-maintenance lifestyle while reaping the benefits of homeownership. This community is within minutes of Orlando's major attractions, shopping, dining and entertainment. Community amenities include a pool, tennis court and a children's playground.  This incredible community is an exclusive gated development of 3 bedroom townhomes.  They share the exactly the same floor plan with Crestwynd Bay.  Current Listings: Link Location Map in relationship to Disney (4 Miles): Link Rental Analysis: Monthly Net Rental Income: $900-$810 (after 10% Property Management Fee) Expenses: $718 (Mortgage 5%, 80% financing: $317; Property tax: $200 or less; Insurance: $60; HOA: $125) Net Cash Flow: $100-$200 per month (net rental income minus expenses) We will provide guaranteed lease back program for purchases in this subdivision.  Basically, we will pay mortgage (80% financing), tax, insurance, HOA for you.

Useful Links:

Osceola County, FL	Orange County, FL
Lake County, FL	Polk County, FL

Real Estate Journal	Nat'l Real Estate Investor
Wall Street Journal	Money
The Economist	BARRON'S
BusinessWeek	Inc
Entrepreneur	FOXBUSINESS
Forbes	Retail Traffic