Ft. Myers Florida Preconstruction Investment Duplexes
Two Duplex Models to choose from:
- The Barclay: $277K with 2 Sides each having:
- The Sunshine: $302K with 2 Sides each having:
Project Summary: Affordable Housing Duplex
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. Over the last few years, many investors have made significant returns in the market by investing in up-scale housing. Today, up-scale housing has reached a temporary saturation point as current upscale housing inventory has surpassed the current demand. On the other hand, the demand for affordable housing is far greater than the supply, and creates a new opportunity to invest in one of the hottest real estate markets in the United States.
Our group has created a business model that helps address the affordable housing issue while also providing a significant investment opportunity to qualified investors. Duplexes are two units, each approximately 1050 square feet with each unit having 2 bedrooms, den, 2 bathrooms and a 1-car garage. Currently the all-in cost of the duplex project is approximately $277,000. The cost includes the land, building, and site improvements, closing cost and interest during construction. The current market price of the duplex today is around $320,000, thus providing the investor with built in profit before construction begins. Upon completion of the duplex the investor could;
1) Sell the duplex and realize the short term gain or
2) Keep the duplex and rent it for the one-year period following construction, thus qualifying for capital gains. Currently market rental rates on duplexes are $900 - $1100 per side per month or $1800 - $2200 in total per month.
Added Bonus: In addition to the above, our group is working with local governments to allow for the duplex unit to be legally split and each unit sold separately. When completed the investor may be able to sell each unit for $185,000 per side or $370,000 in total, thus providing for greater investment returns. We believe the $185,000 cost per unit is one of the lowest entry points for affordable housing in SW Florida and assists local governments in resolving one of SW Florida’s most important issues.
Why Affordable Housing?
Affordable housing has become one of the most important issues affecting the growth in the Florida market. This area has been ignored by builders and developers over the last few years as builders concentrated on up-scale housing during the recent housing boom period. With the significant growth in Florida and with affordable housing construction not keeping pace, the problem has escalated to the point of jeopardizing future growth. Today, there is a significant shortage of both public and private sector employees such as teachers, nurses, firefighters, policemen and service workers. One of the major reasons for the shortage of employees is the lack of affordable housing. Although this problem is significant, it also presents a great opportunity to invest during the front end of an affordable housing growth cycle that could last 5 to 7 years. Our group has assembled several opportunities for investing in the affordable housing market, each of which provides for attractive financial returns, with some having positive cash flow in the year following construction. Overall, we believe the investment in affordable housing is an attractive option for investors interested in diversifying their portfolio.
Project Location: Lehigh Acres, Lee County Florida
Lehigh Acres is conveniently located off I-75 between Ft. Myers and Naples.
Key Market Condition Facts
- The S.W. Florida real estate market has seen significant growth in housing starts over the last four years, due to the influx of second home buyers and retiring baby boomers.
- Property values in Lee and Collier counties have increased significantly over the last three years.
- Large investors have focused on Florida growth and have invested significant capital in the Florida real estate market.
- Due to the significant expansion of the Florida market, the unemployment rate has dropped to 2.2 percent and all employers, public and private, are having difficulty in hiring workers to support this growth.
- Initially the S.W. Florida real estate investment opportunities focused on high end housing, but today have changed to a more affordable housing in response to the great demand from the working middle class community.
- Many government officials believe that the affordable housing problem may be the number one problem affecting future growth.
Why Buy a Florida PreConstruction Duplex Investment?
It's really quite simple, the finished Duplex's market value is worth more than the land home-site and the construction cost to build the duplex. New construction homes are needed at affordable prices to meet the enormous current and future demands. You will have at least 10% instant equity even before construction begins on your new duplex. Then, another 10 to 12 months of appreciation for further equity gains during the build-out phase. No mortgage payments are required during construction period and only $5,000 out of pocket is required.
The earlier you invest the lower the prices and the larger the profits. Demand for preconstruction investment duplexes is huge and expanding. A lot of market research and preparation has taken place behind the scenes to perfect this turn-key investor program. All the necessary resources are in place for you to benefit from leverage and maximize profits on your investment dollars.
Cost - Payment - Profit Scenarios
Total out-of-Pocket $5,000
| Appraised Current Value of New Duplex
|| $ 320,000
| Total Cost of New PreConstruction Duplexlot, duplex, construction financing & closing costs
|| $ 277,000
| Equity Profit prior to construction
|| $ 43,000
| Projected 12-month appreciation 5%
(2005 Florida Statewide rates 10 - 40%)
Source: National Association of Realtors
|| $ 16,000*
| Gross Equity Profit on Built Duplex
|| $ 59,000*
|*No promises or guarantees of future performance are made.|
You keep 100% of the equity - NO EQUITY SPLIT
Summary of the Program:
- Pre-Qualification - Complete form and fax back to us at 407-898-4631
- Once Approved - 2 checks will need to be written $3,000 in Total; Lot Contract Deposit $1,000.00,Duplex Building deposit $2,000.00.
- Lot & Duplex Model will be selected. A lot contract will be sent for your review and signatures. (We will assist you on selecting a model home. Once received we will have the builder contract and loan documents sent via FedEx for signatures and required documentation.
- Then $2,000.00 will be due at closing. That makes a total of $5,000.00 cash out-of-pocket needed for this investment. Construction loans, typically will close in 30 - 45 days, no additional cash is needed for closing and zero payments during construction.
At completion (10 to 12 Months), you can sell your home and harvest the built up equity - appreciation or rent it out for cash flow. For those who plan to sell, it can be marketed 3 months prior to completion.