In working with another client, I have stumbled upon two villa properties that offer EXCEPTIONAL income production, some discount from current market (more with the third floor unit than the fourth floor unit), and significant discount from historic high exhibited by the pricing on both. If you have even a remote interest in this kind of property, they are worth a close look. This is the view from the balcony of the third floor unit over Coligny Beach and read-down further to see financial data:
| Unit 3304 | Unit 3404 | |
| Bedrooms: | 2 | 2 |
| Baths: | 2 | 2 |
| Sq Ft: | 1,453 | 1,453 |
| Regime fee: | $708 | $708 |
| Property Tax: | $8,481 | $8,481 |
| Gross Income: | $67,500 | TBA (I would expect $75,000+) |
| List Price: | $749,000 | $899,000 |
| Last Sale: | $715,000 (1/27/2012) | $715,000 (1/27/2012) |
| Current Owner Paid: | $1,100,000 (4/29/2005) | $1,050,000 (12/18/2006) |
| 2005 Market High: | $1,100,000 (4/29/2005 | $1,100,000 ( 4/29/2005) |
| Projected Sales Price: | $700,000 | $800,000 |
The first reason to buy is that these units generate nearly 10% of what I project to be the acquisition cost for each, when the market norm is about 5%. Unit 3304 is advertising $67,561 gross rental income for 2013, 2012 was $63,793 and 2011 was $58,433, and $59,184 so far this year. Unit 3404 does not yet have the numbers attached to it, but I bet they are the same or better. At this level of gross income, the projection is that each of the units would earn substantially over monthly and annual costs so as have the ability to substantially retire the expense of any reasonable existing mortgage (at 75% LTV or lower) – and that is highly unusual. I do not know what would beat these units as far as cash on cash return – in fact, one unit in this building 3 Sea Crest is supposed to be doing 48 weeks.
The second reason to buy is that they are listed at 68% and 82% of the market high for each – near-foreclosure pricing that you only found at the bottom and do not often find anymore – and a successful sales contract would typically be at a discount to list price – making the probability that there is plenty of room for capital gain very high. The third reason to buy is that unit 3304 might beat the last sale in terms of discount – unit 3404 is unlikely to do that and should be discounted more from list than 3304 – however, is still an excellent buy in terms of the revenue that it will generate as a function of the sales price and the expected appreciation over the next several years. Rental income details are likely to be available tomorrow, and I am sorry to not have them available now – it is a brand new listing that does not yet have complete information advertised by the listing agent.
3304 The Sea Crest on www.ThePattisallGroup.com:
http://www.thepattisallgroup.com/search/details/52f/0/
3404 The Sea Crest on www.ThePattisallGroup.com:
http://www.thepattisallgroup.com/search/details/59k/0/
Here is unit 3304 as advertised on the Vacation Company web site:
http://www.vacationcompany.com/hilton-head-rentals/properties/3304-seacrest-forest-beach/
Reply or call me on the cell if you are inclined to consider and would like to discuss 843-304-9590.
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