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Tuesday, May 31, 2011

No Bottom-Feeders, Please - Key West

77 Lb. Black Grouper (a Bottom Feeder) caught in Key West - 1995

The listing agent at Preferred Properties (that's where I work) added this comment in the agent remarks section to the listing at 925 Eaton Street "And, lastly, the price is firm. No bottom-feeders, please."

925 Eaton Street - Old Town - Key West - 2011
925 Eaton Street as it looked in 1965

Before that he described the 4 unit money maker at 925 Eaton Street in Old Town Key West this way:
"Legal four-unit property consisting of an historic main building with three units and a secondary non-historic cottage. Projected $47,000 gross annual income (2011 -2012) and tenants pay all utilities, including sewer and trash bills. Expenses are Fire Insurance: $1,879 Windstorm Ins: $2,320 Flood: $2,075 Taxes: $3,634.00 Due to the extraordinary cash flow, the owner is FIRM on the price."
I have shown this property a few times during the past couple of years. The listing agent discussed "potential income" when showing the place. That always suggested the new owner would need to spend some time and some money to goose up the revenue. The agent got the seller to do some of the suggested updating and now the income property is listed for sale at $405,000. CLICK HERE to checkout the Key West mls database on this property and to view several nice photos of the updated property. If you looked at this place before, it might be time to go back for a second look.

The guys and girls that work in the shops and restaurants or that man the fishing boats or sightseeing tours live in places like this. Places like this typically charge around $1,000 to $1,200 per month for an economy apartment. (The listing agent projects $47,000 annual income or $980 per month per apartment.) Small units normally have just one tenant but sometimes places are shared to keep costs manageable. The property at 925 Eaton Street requires the tenant pay the water and electric. That's good for a landlord especially because some tenants love to leave the air condition down way low when somebody else is paying the bill.

You will note that this property does not have parking nor a pool. You as an owner/landlord and the tenant would have to pay more for "luxuries" like that. But what is does have is a good location within easy walking or riding distance by bike or scooter to most of the Old Town area. That's the area where most locals work. So this location (and lack of amenities) is practical from a tenant perspective. Lest you feel sorry for the tenants, Dante's is just a couple of blocks away. You will find lots of locals that spend their days off lounging by the pool.

If you are looking for a small investment property in Key West, you might want to take a look at 925 Eaton Street. If so, please contact me, Gary Thomas, 305-766-2642. I am a buyer's agent and a full time Realtor at Preferred Properties Coastal Realty, Inc. in Key West.


Anonymous said...

The Captain says:

The most telling comment in your post is "I have shown this property a few times during the past couple of years" Properties that are priced to sell do not languish on the market for "a couple of years." And to now relist it with the price as firm, (actually FIRM is how your colleague put it) simply is off putting to many potential buyers. You should perhaps give your colleague a little friendly advice.

Captain out......................

Anonymous said...

The Captain says:

What do I know? This property went contingent.

Captain out........................

Gary Thomas said...

Captain, I learned that on Saturday. I had a buyer in town that read my blog, called me, and wanted to buy it. I could not even show as a back-up because there already was a back-up.

Potential buyers need to understand that our market is contracting-quickly. There is not the "supply" that many think exists.



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Key West, Florida, United States
I first read about Key West in a magazine called "After Dark" sometime in the mid 1970's. But it wasn't until March 1984 that I made my first visit to the island that would become my home. I had two weeks for a vacation and reserved a room at Colours Guesthouse (now Marrero's Guest House) for one week. I thought that if I didn't like Key West, I could always go back to Miami or Ft. Lauderdale for the rest of my trip. But after a couple of days in Key West, that was no longer a consideration. But when I wanted to extend my stay for the extra week I found there was no room at the inn. The guesthouse owner did find me a room at LaTeDa, the infamous guesthouse/restaurant. That's a story I'll write another day. But those two weeks in Key West gave me the realization that I had found Paradise. Key West has been my home since 1993 and my only regret is that it took me so long to get here. I am a full time Realtor at Preferred Properties CRI. Let me help you find your new home or business in Paradise. Living in Paradise is not a slogan, it's a way of life.