Key West Guesthouse - Bank Owned !

Just Listed, but not by me, the Nassau House guesthouse located at 1016 Fleming Street in the heart of Old Town Key West. This property is now Bank Owned and it has been re-priced to sell. This listing agent describes this property as follows:

"Bank Owned Guest House in Old Town Key West. Well known 9 room Guest House with full kitchen, outside decks and porches. Lush landscaping. Spacious rooms, each individual in it's location in the house, as well as it's theme. Lock out units provide flexibility in booking larger parties. Lagoon pool and Tiki hut provide relaxing area to congregate, as well as decks and porches on each floor. Priced to sell. Bank says Bring Offers."

Nassau House is a well established guest house located right in the heart of things at 1016 Fleming Street. For point of reference the famous Eden House is located across the street (it was the home of Goldie Hawn in the movie Criss Cross filmed in Key West in 1992). Click the MAP for the best view of the location. (Google maps give viewers great perspective views of the area as a whole and then zeros in onto the neighborhood. The street view is great as well.) The location is great because guests can walk to any number of nearby restaurants (Azur, Michael's, Cafe Sole, The Marquesa Cafe, A&B Lobster House, etc.). The Tropic Cinema, the Red Barn Theatre, and the Waterfront Playhouse (where you will occasionally see something deliciously naughty) are all within a ten minute walk. The seaport is only a five minute walk and the nightlife on Duval Street is a comfortable stroll both going and returning.

This property has been listed for sale over the past two years at an asking price as high as $2,750,000. It is now offered at $1,700,000. There are nine guest rooms but there are only five City of Key West transient licenses. The city is aware that this guest house, like many others, has more guest rooms than it has licenses. There is an inherent risk in buying a place with less licenses that the law requires. Yet, the law has not been enforced for years. Someday a new city administration may enforce the rules and only permit guest house owners to rent only the number of rooms for which they hold a valid transient license. My advice to a prospective buyer is to discuss the legal ramifications with a real estate lawyer in Key West. My opinion is that the city will continue to take the bed tax and look the other way. That being said, CLICK HERE to review the mls information and to view more photos of this property.

I used to own a guest house in Key West. I bought a place that had been foreclosed and I got a very good deal. I regret now that I sold it. But what I know now more than ever is the value of a good location and a good name. Tourists know what they want or expect for their money. People that want beachfront location and luxurious amenities don't stay in guest houses and vice versa. I suggest that a prospective buyer develop a good business plan that fits the expectations of guest house visitors and not to develop some grandiose miniature Ritz Carlton. Providing a clean and comfortable room, a friendly environment, and TV and internet that works, a pool and a place to get that enviable Key West tan plus a good cup of coffee in the morning are the framework for putting lots of heads in beds.

I think this property ought to sell fairly quickly at the asking price. I would love to work with a buyer that wants a Realtor that actually knows something about the guesthouse business. And having just listed or sold other guesthouses does not necessarily bring any expertise to the table. Like I said, I purchased a bank owned guesthouse and ran it. I know first hand what a prospective buyer will face. If you are looking to purchase a guesthouse in Key West and would like to see the Nassau House, please contact me, Gary Thomas, 305-766-2642 or send me an email at kw1101v@aol.com. I am a full time Realtor at Preferred Properties Coastal Realty, Inc. in Key West, Florida.