522 DuPont Lane # 1 - Key West - Transient Licensed Single Family Home

Just listed by Preferred Properties, that's where I work but this is not my listing, 522 DuPont Lane #1 in Old Town Key West.  If you have been dreaming of buying a place in Key West that you could rent when you are not using the property, this home may be the answer to your dreams.  The listing Realtor describes the property this way:

"TRANSIENT LICENSE! One half block from Duval Street with PARKING and a great pool and outdoor dining pavilion. There is one bedroom downstairs with an en suite bath and there is also a half bath downstairs. The living room has two pairs of French doors opening to the pool and deck. Upstairs are two bedrooms with en suite baths, vaulted ceilings and appealing balconies."

522 DuPont Lane is located at the end of what used to be called Titanic Lane.  The lane is located about 120 feet east of Duval Street on Petronia Street. It is the proximity to Duval Street that makes this property so appealing to returning visitors to Key West who want to be near all that Old Town has to offer.

 The property is completely gated and fenced. The two story house has 1568 sq ft of living space that includes three bedrooms, three baths plus a half bath, large living area with French doors that open out to the pool and deck. The pool is surrounded by tropical plants bathed in color French doors int he living room and bedroom open onto the courtyard. There is a separate poolside pavilion for alfresco dining.  And there is off street parking (adjacent).

 CLICK HERE to view the Key West mls datasheet and to view listing photos  This property may not be toured until March 15th.  But don't let that prevent you to consider purchasing this money maker.  This property has a valuable transient rental license and can be legally rented on a daily basis to a different vacation traveller every day of the year. That's not practical, but it is important to understand that this property can provide a steady income stream to you as an investor. There is one drawback to owning a property like this: you can't use it as often as you want because when you use it, you are not making as much money as you could.  What a darned plight to have!

If you would like more information on this house or if you would like to see it as soon as we can get inside, please contact me, Gary Thomas, 305-766-2642 or send me an email at kw1101v@aol.com. I am a buyers agent and a full time Realtor at Preferred Properties Key West.  Let me help you fulfill your dream of owning a home in Key West.

Beautiful Arts & Crafts Style House - Bank Owned - Key West

This Old House as it looked in 1965

A local bank recently foreclosed and now owns the old house pictured immediately above. The old black and white photo was taken in 1965. Until a couple of months ago this property looked a little worse for wear. The years took their toll. Owners came and went. And then the lender did what lenders do when loans are not repaid as agreed: it foreclosed. But instead of letting a decent asset sit and fester like a lot of Big Banks that are Too Big To Fail do, the local bank did the unthinkable: it fixed it up. Not a little but not all the way. But it did enough to make potential buyers see the real potential of this very attractive arts and crafts style home that was built in 1943. Take a look at her now, below.

Above Photos taken March 25, 2010 - Key West

This property is located on Simonton Street near Truman Avenue. It is zoned HNC-1 which is short for Historic Neighborhood Commercial-1. Uses for this zoning include include residential (including single family, duplex, and multi-family) and limited commercial including professional offices, banking and financial services, personal service shops, specialty shops, limited retail, transient accommodations and guest cottages. Rather than rely on what I write, do your own investigation to determine suitability for the use you intend. CLICK HERE to read the City of Key West zoning ordinances and consult with your own attorney. Just because some use may be permissible does not mean you will necessarily be able to do what you want.

Photo from kitchen looking through proposed bath No. 2 and into second bedroom

Photo from living room through dining area with kitchen beyond

This 1204 sq ft building (County Appraiser records) sits on a corner lot (47.33' frontage X 58.07 ' deep or 2,756 sq ft). The building has just been painted and it looks fantastic. The roof is new; the front railing on the front porch is new; the retaining wall is new; the electric is new. All of the windows are original. They all work properly! The contractors working on this house did a really professional job on the projects they did, in my opinion. The interior is currently framed for three bedrooms, two baths, and a kitchen. A laundry closet already has been framed and plumbed and awaits drywall.Extensive building plans are available. It looks to me like the interior spaces could be changed fairly easily. But I'm not builder so any buyer needs to determine how "easy" easy can be and how expensive "easy" can be as well. There is one off street parking space. After the interior is completed, put up a nice fence, add some nice plants, and you could have one sweet looking old house in Old Town Key West. Although it is doubtful that you could get a transient license, you could rent this house as a legal vacation rental. It's proximity to Duval Street with three bedrooms and off street parking make this a great candidate for such a rental in my opinion.

This arts and crafts style house is Bank Owned and is offered at $500,000 "as is". Please contact me, Gary Thomas, 305-766-2642 for more information. This property is not in the mls. I am a full time Realtor at Preferred Properties Coastal Realty, Inc. in Key West, Florida.

1012 Varela Street - Bank Owned - Key West

Attention Bargain Hunters: This BANK OWNED property at 1012-1014 Varela Street may be the bargain you have been looking for. Here's why. This two cottage assemblage is located in the Viva Varela Condominiums just a stone's throw south of Truman Avenue in the Old Town area of Key West. The front cottage consists of a good sized living room with two story vaulted ceiling. The walls and ceiling are Dade County Pine. Thee is a small bedroom downstairs and the master bedroom is on the second floor. It is accessed by a spiral stairway from the living room. The master bedroom is open to the downstairs so both spaces have a very open feeling. The one bath is located on the first floor. The kitchen is quite large. It has two sets of French doors that open on to the rear bricked courtyard. (There is also a laundry closet in the kitchen.)

Pretty nice kitchen for the price, wouldn't you agree?

Double set of French doors looking onto private courtyard and second cottage to the rear.

The main house with deck of master bedroom as viewed from the rear cottage.

The second cottage sits near the rear of the lot. It has a good sized bedroom and large bath with a glass block wall that lets lots of light into the area. There is a deck to the rear of that cottage which has a separate gate that provides private entrance into the cottage without going through the main house. That would be an excellent place to put your guest so they won't disturb you after they return from a night on the town. That cottage does not have a kitchen. The living space is vaulted, and did I mention the front of that cottage has French doors that look out toward the bricked courtyard that separates the two cottages. That courtyard is large enough for a pool.

The rear cottage as seen from the deck off second floor master bedroom.

The interior of the rear cottage as it appeared before the foreclosure.
Note the private deck at very rear of the property.

Glass block wall is the shower in the rear cottage; private gate to right.

The listing agent shows the two properties having 1130 Sq Ft of living space on a 7598 Sq Ft lot and describes the property this way:

"This BANK-OWNED property consists of two adjacent condos originally deeded separately but now combined under one legal description. This property has been recently upgraded and only requires some TLC. The front unit is a one bedroom/one bath with a loft and the rear unit is also a one bedroom/one bath that can be used as a guest quarters or master suite. It also has a separate entrance. Both units are separated by a paved rear yard."

Prior to becoming a bank owned property, Preferred Properties listed 1012 Varela Street as a short sale. The listing agent described the same property a little differently:

"Two newly-renovated freestanding condos, originally separately deeded, now combined with one legal description. 3 bedroom 2 baths with private bricked tropical garden area between the main house (2/1) and a fully-detached 1/1 cottage in the Viva Varela Compound. Main house has dramatic vaulted ceilings in living area with a loft bedroom and access to a rooftop sun deck. Eat-in kitchen has granite counter tops with stainless steel appliances and attractive cabinets. Cute new bathroom and lovely tiled floors throughout the main house. The second unit has much charm and a separate entrance via a tree-lined garden path."

CLICK HERE to review the current mls data sheet and see more photos of 1012-1014 Varela Street.

No matter how it is described this two cottage property is now offered at $348,900 or $310 per Sq Ft. The roof over the kitchen needs a little repair. The owner previous to the present bank owner combined the two contiguous condos into one real estate parcel (to minimize taxes I suppose) without obtaining the approval of the condo association. That was a "No No" and the condo association will require the new owner to pay the cost of amending the condo docs to reflect the new reality. So a new buyer will need to spend some money(but not a lot) to make things right with the house and right with the neighbors, but this two cottage compound is a real compound investment.

If you want to see 1012 Varela Street please call me, Gary Thomas, 305-766-2642. I am a full time Realtor at Preferred Properties Coastal Realty, Inc. in sunny Key West, Florida where today it will be 74 degrees and sunny. The streets of Key West are filled with happy campers walking around with their shirts off (the guys) and enjoying to fresh air and sunshine of the Keys.

Bank Owned - 1318 Duncan Street - Key West

A few years back when the cost of single family residential housing in Old Town Key West got to be nearly prohibitive for all but the super rich, several larger old properties and some former apartments were converted into condominiums. As the market heated up even those units started to get quite expensive. Such was the case of the four unit complex at 1318 Duncan Street. The main house was quite large and got divided quite naturally. The larger downstairs unit (1188 sq ft) became Unit # 1. The upstairs unit is 750 sq ft. It became Unit # 2. Two other cottages in the rear that are located on the south side of the large and sunny pool became Units 3 and 4. (Both units are owned by another person who rents each as long term rentals.)

The real estate market turned south. And the two units in the main house turned Deep South. They are now bank owned and they are unwanted. They have been on the market since July 2009. I have shown them a couple of times. The downstairs is large and inviting. It was offered for sale in 2007 by the former owner for $849,000. That owner used it as a legal long term vacation rental and was quite successful with it. The same former owner tried to sell the upstairs unit in 2007 for $475,000. That owner rented it as a long term rental. The market took a downturn and the bank foreclosed.

CLICK HERE to see the current mls listing info provided by listing Realtor along with current photos of the downstairs unit which is now listed for $260,000. CLICK HERE and CLICK HERE to see what the pool and kitchen looked like when it was marketed for $849,000 IN 2007. (Remember, those two photos are two years old.) It is the same place. It's just another typical bank owned foreclosure-almost.

CLICK HERE to see the listing info on the upstairs unit which is now priced at $195,000.

This is the issue as I understand it: The condo association became defunct after the former owner stopped making condo association payments. The association did not have sufficient funds to pay building insurance and make other necessary payments. The bank owner is left with an asset that cannot be financed by another bank because of the defunct condo association.

I discussed this matter with the listing real estate broker about a month ago. I was told the bank owner would prefer a cash buyer that would take both units and let that buyer deal with the condo association difficulties. I believe the bank owner would sell both assets at a discount to a cash buyer.

The downstairs unit has a large private deck off the dining room and the use of a garage CLICK HERE. The interior needs painted and cleaned. The pool and deck area is quite large and very attractive. In better days this place was a showplace. It can be again.

If you are a cash buyer please call me, Gary Thomas, 305-766-2642, to arrange a showing on these two units. I would recommend that a serious buyer engage a local real estate lawyer to prepare any offer to purchase this particular property.

921 Eaton Street - Old Town - Key West - Bank Owned Duplex

I can already hear the chorus beginning to chant "location, location, location" or something like that as a reason not to even consider this cute two story duplex that in a newly listed Bank Owned investment property. The property is located at 921 Eaton Street. Busy street during the daytime, for sure. Quiet at night, however. Asking price for this 1240 sq ft property near the corner of Eaton & Grinnell Streets is only $424,900 or $343 per sq ft. CLICK HERE to see the listing information provided in the mls. And CLICK HERE to see additional information that the previous Realtor provided and much better photos prior to bank ownership.

I took the photos above today. Look at the neighbors. The immediately next door to the west (CLICK HERE) at 917 Eaton is offered at $1,795,000.Not a typo! The yellow house next door to 921 Eaton is not listed for sale (CLICK HERE), and the income producer with 15 years income producing records located at 925 Eaton Street is listed by Preferred Properties at $450,000 (CLICK HERE) for info on that property. One of Key West's most beautiful and most photographed homes sits at the corner. CLICK HERE, CLICK HERE, and CLICK HERE to view. The Paradise Cafe is on the opposite corner at Grinnell. And one block north on Grinnell you will find Finnegan's Wake. And one block beyond that is the Historic Key West Seaport.

CLICK HERE to checkout the magnificent homes and mansions currently for sale. Maybe then you will appreciate the value of this simple little duplex in a very good location.


Randy, who used to cut my hair, lived at 921 Eaton Street for some time. He loved the house and the location. That doesn't mean you would. But the location doesn't mean that you would not. I can imagine a buyer could be someone who wants a nice clean place in a good location with some income to offset the cost of purchase. Rent the one bedroom and keep the two bedroom unit for yourself. The income will help pay part of your mortgage and keep a physical presence at the house. By the way, the property directly across the street, West Winds Guest House, was listed for sale this week at $6,440,000. And the Duplex across the street at 904 Eaton (CLICK HERE)was just listed for sale at $930,000. It has a pool and it is 700 sq. ft. larger. But it's on that same block! Across the street!

Some of the bank owned properties are selling quite quickly. Please contact me, Gary Thomas, 305.766.2642 or e-mail me at kw1101v@aol.com for more information. I'm not ready to say this is a bargain, but it looks pretty attractive at this time.

Compound Investment -- Key West

Price Reduced $800,000 today. Was $1,995,000. Now asking $1,195,000. This is what you get at 610 Petronia Street in Old Town Key West: Four individual cottages fully equipped. Total of 4 bedrooms and 4 baths with total square footage under air of 3468 sq. ft. that sits on a very large 8400 sq. ft. lot. The compound is priced at $345 per sq. ft. That is a very good price for a property like this. 610 Petronia is located just east of the Merlinn Inn Guest House and down a private lane. So the compound is one of those special island within the island properties that I so love.

This is not a foreclosure or short sale. So we don't have to go through brain damage waiting for bank approval. CLICK HERE for more info and photos.

Easy to show. Call me, Gary Thomas, 305-766-2642 to schedule a showing. This property probably won't last long at this new price.

Greed and Stupidity

Back on April 4th I wrote about a story in the Key West Citizen regarding some Key West investors that sued the Realtor who sold them units in the Santa Maria Condominiums that were under construction. CLICK HERE to read that blog. The plaintiffs alleged that the Realtor misled them about their ability to flip the condos and make a profit once the units were completed. The market in Key West declined and the buyers were forced to either perform under the contract (close on their sales) or lose their substantial earnest money deposits.

Today's Key West Citizen reports the results of the lawsuit: Judge tosses condo lawsuit. CLICK HERE to read the article. According to The Citizen "The buyers also admitted in the lawsuit that they had not read their investment contracts, but had relied on their Realtors' claims."

The defendant Realtor's attorney stated "The written contract was very clear and unambiguous," said Ed Scales, one of the lawyers representing Santa Maria. "The judge held that we didn't do anything to prevent these folks from reading their contracts. He said it was 'entirely unreasonable' for people to plop down [that amount of money] as a deposit and not read the contract."

I specifically remember the time around Christmas in 2004. People were buying up everything in sight including blue sky condos under development. Four condo developments were in various stages of development and each enjoyed hearty pre-sales,including the Santa Maria Condominiums. Another property at the site of the old Holiday Inn was demolished for a new Ritz Carlton style condo-hotel project almost sold out in about 30 days time. Again, locals were buying the units.

I remember discussing this buying frenzy with fellow Realtors at the time stating that I didn't think the market could support that many new high end condos. And it didn't. Even if the market had not cooled off in Key West, the number of high end condos was just too great to absorb so quickly. So it is no surprise that "investors" who relied on their own greed and stupidity failed to consider that the might not be able to resell their condos at an inflated price.

When I have a buyer who is ready to do a deal I suggest that he/she/they do two things: (1) get a professional inspection of the property and (2)engage a local real estate attorney if there are any legal issues (title, zoning,etc.)that may affect the property. Had the "investors" in the Santa Maria Condos hired an attorney before the contracts were signed, the lawsuit probably would not have happened because the lawyer would probably warned them that they were risking a lot of money on something that might not occur.

CLICK HERE To find your own good property in Key West's mls database. And then call me for more information. 305-766-2642.

Open House Sunday -- 617 Fleming Street

Please visit me on Sunday, April 15th between 11:30 AM - 2:00 PM at Campbell Courtyard, 617 Fleming Street to see
what I call a Slice O' Paradise. CLICK HERE for more pics and information on this charming two story cottage right in the very heart of Old Town Key West. It is two blocks to Duval and three blocks to the Historic Seaport. But tucked away in a quiet little island on the Isle of Key West.

This charming 2 bed / 2 bath home was recently appraised and is priced at the appraised value, $785,000. The home is an eyebrow house, and it sits at the rear of the Campbell Courtyard compound. The home is offered fully furnished as well. The home has an excellent rental history and would make an excellent investment for folks who want to buy a little place in Key West that can help pay for itself.

If the charm, convenience,location, furnishings, ability to rent the home but still use it and don't win you over, maybe this will. It also has privately owned off street parking space. Bring your checkbook. Let's write an offer this Slice O'Paradise this weekend.

Holy Flipper Batman

A few weeks ago I wrote a blog about the new Santa Maria Condominiums. CLICK HERE to read that blog. I wasn't impressed. I think the project has many flaws and the units are overpriced. I abhor the architecture of the new building. And I think the 40% managemtn fee for condo owners is ridiculous! But that is not the point of today's post.

A top story in today's Key West Citizen discusses a lawsuit filed by seven disgruntled buyers who purchased units at the project prior to or during construction and who now claim the were defrauded by the developer, the real estate company, and three realtors who marketed the project. CLICK HERE to read the article.

"The plaintiffs were assured by the defendants that once the building was under construction, prices would increase dramatically as they were contracting at a bargain price, therefore there would be no issue with the plaintiffs being able to resell their investment contracts to somebody else at a profit," the lawsuit says.

But later in the complaint plaintiffs admit "Plaintiffs ... did not carefully read the agreements, did not get professional advice regarding the agreements and ignored the language and disclaimers in the agreements as they were assured they would never have to close as their contracts would be resold at a higher dollar amount prior to closing."

If we could all only sue someone else for our greed and stupidity. I do not know the facts of their individual cases, but I did get to experience a sales presentation with a customer who was interested in the project. I listened intently as the rep went through the litany of all the things that were promised, but I also heard him say all the things that would cover his backside if things went south. My customer heard only the good stuff, and wanted to buy. He didn't have any money, however, and wanted to borrow the hefty down payment. Seller wasn't in the business of financing down payments so the deal did not get made. My guy didn't have a nickle, but he wanted to participate in the buying frenzy that was going on in late December 2004.

Two and a half years later the would be flippers who did have the money are having to pay up and close on their contracts, or lose their hefty earnest money deposits. I personally know many locals who bought into various projects or existing properties thinking they would hold them and later flip them for a profit. And many of those folk are in deep trouble today. Many.

I personally think now is a good time to buy because prices have taken a major correction downward. That doesn't mean they are going lower. I can't predict the future. But I do think there are some real buying opportunities in Key West. I know that there are several "big deals" in the works. And smart buyers are snapping up good properties. Good is always like gold. Gold may go up and down with the market, but gold will always be gold. And good properties will always be good properties.

CLICK HERE to find your own good property in Key West's mls database. And then call me for more information. 1-877-778-7092.

The Boomer Century

“The Boomer Century: 1946-2046” is a two-hour documentary that looks to the baby boomers’ past for clues to how this generation of 78 million Americans will shape the future. The program focuses on the boomers’ formative years to reveal the personality traits of a generation that has since rewritten the rules for work, marriage and parenthood, and is now redefining retirement and aging.


The Boomer Century is currently airing on PBS stations across the country. I have watched it twice, since it is all about me. Well, me and millions of other baby boomers. I was born on January 1, 1947 so I started the whole damned thing. If you are a boomer, you owe it to yourself to spend two hours to see how we got to where we are today.

Ten Interesting Facts about Boomers:
1. The number of baby boomers in America is estimated at 78.2 million.
2. Approximately 7,918 Americans turn 60 each day. That’s about 330 every hour or more than four million a year in 2006.
3. Within 20 years, the age profile of America will match that of Florida – about one in five Americans will be older than 65.
4. Boomers who reach age 65 in 2011 can expect to live, on average, at least another 18 years.
5. Four out of 10 boomers have less than $10,000 in retirement savings.
6. One-third of boomer households today have at least $100,00 in investable assets.
7. About one-third of baby boomers think they will have enough money to live comfortably once they retire.
8. Four out of five boomers intend to keep working and earning in retirement. Half of boomers plan to launch into an entirely new job or career in retirement.
9. Only one in seven baby boomers say they plan to collect Social Security benefits at age 62.
10. The unpredictable cost of illness and healthcare is by far boomers' biggest fear. They are three times more worried about a major illness (48%), their ability to pay for healthcare (53%) or winding up in a nursing home (48%), than about dying (17%).

Most of my clients have been or are boomers. They still consider themselves young, but are usually looking for a second home or investment property that they can eventually retire to a few years down the line. If you are considering such an investment, whether you are a boomer or not, you can CLICK HERE to search all current mls listing in the lower Florida Keys. Then consider calling me at 1-305-766-2642 for further information.