Invest in Key West

The stock market is probably going to go ape today with word that the United States is going to give AIG another $30 BILLION. Markets in Asia have already burped real bad. The financial news keeps feeding the hysteria and gives credence to the prophets of doom and gloom.

Thirty years ago as we were emerging from our nightmare over South Viet Nam, the ouster of Richard Nixon from the White House, sky rocketing oil prices, inflation, deflation, and stagnation, the county went through a similar economic downturn. What we did not have at that time was 24-hour-a-day news channels and the Internet scarring the beejesus out of us. I'm not saying the economy isn't bad. Back then it was Chrysler that was facing closing down. New York City faced failure in the face. The country responded by building K-cars and painting our appliances harvest gold and avocado green. Chrysler is still making cars and New York City has had its share of ups and downs, but it is still there.

I think there may be some good deals to be had by investing in Key West multiple housing units. I went through the inventory of 3-4 units and selected a few that you may find interesting. A couple of the properties are being offered by the estate of a recently deceased owner. There is at least one short sale in the bunch as well. A couple of the properties are located in really good locations and might be candidates for demolition and rebuilding into a single family home. And there are a couple of workhorses that have years of proven profitability (based on the acquisition cost). CLICK HERE to checkout the list. Most of these properties are lived in by either long term tenants who have lived in the same property for years. A few are apartments for people who rotate through Key West on a seasonal basis. There is always a need for reasonably priced rental properties in good locations. So that is why I think some of the units on the list may be appealing to a buyer looking for an investment property. I am not recommending any one property (or even all of them). I am just providing a list of units that may interest potential real estate investors.

Speaking of investing, I want to mention that Philip Wilson is a fellow Realtor (actually he is an Associate Broker) at Preferred Properties. Phil is a real estate and financial expert with 38 years experience in the private and public sectors specializing i commercial and corporate real estate. Prior to moving to Key West, Phil was the Senior Vice President, Corporate Services for one of the largest international commercial real estate firms. And prior to that, he was a senior executive with the federal government in Washington, D.C. responsible for planning, real estate, design an construction of a nationwide portfolio of 35,000 properties with 300 million square feet, valued in excess of $15 Billion. Phil is an accomplished troubleshooter and problem solver who meets challenges head on.

CLICK HERE to view Preferred Properties commercial properties (for sale or for lease). If you are a buyer or a seller, let Phil and yours truly help you.

If you see a property that interests you, please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com. Or call Phil Wilson at 305-394-4105 or email Phil at pewtar@aol.com.

February Sales Report for Key West

I am no statistician and I am a firm believe that numbers lie and that liars use numbers. Season in Key West is half over. Season to me refers to the time tourists come here every year to enjoy our wonderful weather, to unwind and relax, to drink some booze and to eat at some of great restaurants. And, oh yeah, to dream about what it would be like to live in Key West. For Realtors, season means it is rime time to sell real estate.

These numbers are for sales that closed between February 1 through February 28, 2009. There were a total of 24 single family home sales in Key West during that time. CLICK HERE to see what sold. The Old Town area is the location most potential buyers care about, so here goes. There were 7 houses that sold during that time. One was a short sale; none were bank owned; and the average price per sq ft on the non-short sale properties was $657.87 per sq ft. If you add the short sale, the number is $599.58. That sale was a dump on Bahama Street just off Duval with about 20 people living in it. (Perhaps I exaggerate, but you wouldn't want them as your neighbors!) Nevertheless, somebody got a hell of a deal on that property.

There were no condo or townhomes located in the Old Town area (including Truman Annex) that sold during February.

During February there were just 11 townhome and condo sales for all of Key West (including Stock Island). Three of those sales were short sales and two were bank owned properties or 45%. One of the sales required (just a regular sale) required the buyer to pay the real estate commission.

As I have previously mentioned in my blog there is some confusion among Realtors about how to post the current market status of houses and condos that are short sales where the seller and buyer have an accepted contract but that has not yet been approved by the lender(s). So the number I am reporting for total number of units under contract that are classified either as "contingent" or "pending" may be an understatement. That being cautioned, there are 42 condos or townhomes in all of Key West shown as contingent or pending. There are 38 single family homes listed as contingent or pending. Twenty-five of the single family home sales (65%) are either short sale or bank owned properties.

There are 848 single family, condo or townhomes for sale in Key West and Stock Island.

You can make of those numbers what you want. Just about every Realtor I know is busy showing houses these days. There are lots of lookers and some buyers actually making deals. Prices are low (compared to previous years) and there are some absolute steals on some houses. I think a lot of sellers are keenly aware that season is half over and that if they are to sell their property, they need to make a deal in the next 45 days or so before the buyers head up north. That's why Joe Friday popped by to let you all in on The Facts. Steals and Deals.

If you want to take advantage of the current low prices in Key West real estate CLICK HERE to checkout the Key West MLS database (no realtor will hound you and you won't get any pop-ups either). If you see something that interests you, please give me, Gary Thomas, 305-766-2642 a call, or send me an e-mail kw1101v@aol.com. Let me help you find your place in Paradise.

Everbody's Talking! 924 Flagler Avenue - Casa Marina - Key West Landmark

The Realtor I used many moons ago when I decided to look for a place in Key West just listed one of the most sought after homes in Key West. No hyperbole, folks. Just the facts. The property of which I speak is located at the corner of Grinnell and Flager in the Casa Marian area. CLICK HERE to see the details on this property and view the photos of the incredible interior that has not been touched since the house was built in 1935.

The property at 924 Flagler Avenue is a mix of Spanish - Art Deco with a dose of Key West added for pizazz. The floors are a mix of wood and Cuban Tile. The kitchen is original with handmade cabinets from the era as well as that incredible sink. This kitchen reminds me of the old Andy Hardy movies. Oh, I love this! There are companies that sell retro looking kitchen appliances that look like the old but have all the widgets we expect today. CLICK HERE to see what I mean. The current kitchen may not work for today's buyer, but if it does you could save lots of money on redoing this house. Think about it. (I mean update it but leave the cabinets and install new retro appliances.)

The house is 2064 sq ft and has four bedrooms and two and one-half baths. Original as well. Checkout the photos of the palladium windows in the sun room on the east side of the house. Early morning glory! There's a terrace right off that room on the ground level. And I think the second floor would make a great terrace to view the Atlantic Ocean two blocks away. You're gonna need your binoculars to see it through some palm trees, however.)

So you have surmised that the place is dated and will need an expensive renovation. My advice: hire a good designer, a good architect, and a good builder. Use and restore as much of what is in place to maintain the character of the old. No glass tiles, granite counter tops, vessel sinks, or stainless steel appliances allowed.

There is an existing large two car garage on the south side of the enormous lot. I'm thinking you might want to convert that space into a guest cottage. I think you can build a covered carport closer to the street and enclose the entire property in one of those wonderful Key West privacy fences. There is a huge rear yard located west of the house where there is ample space for a large pool and gardens. The lot is 12,366 sq ft or (99'.27 x 125'). It's big.

There are several multi-million dollar homes in the immediate area. 924 Flagler Avenue is a two block walk to the Casa Marina Hotel and the beach.

A place like this could easily be a million dollar renovation. But not necessarily so. Vision, creativity, a willingness to respect a more simple approach might result in an incredible result.

I would love to show this property to a buyer who has wants to fall in love with a part of Old Key West and who has the financial ability to do a renovation this property deserves. If you are that special someone, please call me, Gary Thomas, 305-766-2642.

615 Grinnell Strret (Rear) - Old Town - Key West

New Listing (but not mine) at 615 Grinnell Street (REAR)is a house that prospective second home buyers ought to take a look at. The one story house is located at the far end of a lane accessed just off Grinnell Street midway between Five Brothers on the north and the Key West Cemetery on the south. There are some very nice homes on this block. And it is located in a very quite area of Old Town. But it is located only a few minutes walk to Duval or the Historic Seaport. Those features ought to appeal to a wide audience of potential buyers.

This is how the listing Realtor describes 615 Grinnell Street: "Tucked away down a quiet Old Town lane is this lovely, fully renovated historic home. Three bedrooms plus a loft/office, high ceilings, quality finishes with an open floor plan for comfortable island living. Owner parks car in private alley in front of property. Lush tropical lot, inviting pool and porches make this a Hidden Island Oasis in one of the best neighborhoods of Old Town Key West." CLICK HERE for more detailed information and a lot of photos of this special house.

This place is totally hidden. It's another one of those hidden surprises that pop up every so often. You can't see the house from the street because it sits behind another house. But the lot itself is very large. There is a lot of outdoor space and sunlight amidst the century old homes and tropical gardens that surround it. The house itself is open from French doors on many sides. (The house is not a box. It has numerous additions that give it that Key West charm.) And then there is that pool and deck.

615 Grinnell Street (Rear) is offered at $795,000 or $624 per sq ft for this 1274 sq ft home on a generous 2985 sq ft lot.

If you would like to see 615 Grinnell Street or any other house in Old Town (that is for sale!), please call me, Gary Thomas, 305-766-2642 or email me at kw1101v@aol.com.

Bank Owned - Heart of Old Town - Key West

I wrote about 518 William Street twice last year and urged potential buyers to look at this very well located house when it was offered as a SHORT SALE at the asking price of $875,000. Guess what: it did not sell. The then listing Realtor did tell me that the lender received a couple of low ball offers in the $300,000 range. Guess what again: it is now BANK OWNED and the new asking price is only $399,900 or $231 per sq ft.

This is how the Listing Realtor describes 518 William Street: "Old Seafaring Neighborhood located just blocks from the Harbor. Easy walking distance to Duval and K.W. Bight. Floor plan works well for extended family use. Minimal yard to maintain, small deck on right rear portion of lot. Bank Owned price set for quick sale." CLICK HERE to see a bunch of photos and get more detailed information on this property.

The house sits on a 2132 sq ft lot (20' frontage X 98' depth). The house has had several updates in the past few years and it appears to be in good condition, at least to my untrained eyes. The County property records show a new roof, new air conditioning, new floors in some rooms, and other improvements. There are two living rooms and two kitchens (that's odd!), two baths, three bedrooms plus a large sleeping loft. There is a great set of french doors that lead from the rear living room onto a deck. There is a spa and garden at the rear. There is no off street parking. And there is no room for a pool.

I think the location would be great for a second home owner who does not need a car or a pool--just a place to relax and enjoy life. The home did not appear to need any repairs. If I am right on that, any extra money a buyer spends would be on fun stuff like Tommy Bahama Furniture or local art.

Please call me, Gary Thomas, 305-766-2642 to schedule a showing on 518 William Street. You may be pleasantly surprised.

1114 Fleming Street - Old Town - Key West

This is how the listing Realtor describes the new listing at 1114 Fleming Street in Old Town Key West: "This circa 1886 home has cypress siding and contains four bedrooms and four and one-half baths including a separate guest cottage overlooking the pool and patio with covered outdoor dining. The kitchen has a large living area with dining. There is also a downstairs bedroom suite and another room suitable as a den, library or office. There are two bedrooms each with baths ensuite upstairs. The master suite has a walk-in closet and opens to a sunny sitting porch under the Royal Poinciana tree. The property is complete with two off-street parking spaces and much of the designer furnishings are available."

This house was recently featured in the Old Island Restoration Foundation's February House Tour. OIRF described 1114 Fleming property thus: "this two-story home, with its saw tooth additions at the back, was awarded a ceramic star from the Historic Florida Keys Foundation in 1983, and is on the National Register of Historic Places. It has maintained its charm while incorporating modern amenities for today's living. Floors are old wide plank pine, doors are old, and most of the large windows are original to the house."

No matter how you describe this house, you can't deny the sheer beauty of the simple lines and the unique pique the Cypress wood siding gives to the property. The house is quite large and boasts four bedrooms and five baths, a guest cottage, pool and patio with covered dining area. The asking price on this 2510 sq ft home is $1,450,000 or $578 per sq ft.

The home is located at the far east end of Fleming Street but it is still a mere stroll to Duval or the Historic Key West Seaport. There are great restaurants such as Cafe Sole and art galleries within a three minute walk. The home is near everything but not in the middle of it all. And that can be very nice.

CLICK HERE for more information on this unique property.

If you would like to see 1114 Fleming Street,or any other home in the Old Town area of Key West, please call me, Gary Thomas, 305-766-2642. Let me help you find your place in Paradise.

Key West Condo & Townhouse Short Sales - 2

A few days ago I wrote about Condo and Townhouse Short Sales in the Old Town Key West area. Those units are normally priced higher than other areas of Key West because that area is more sought after by second home owners. Today I am featuring properties in Mid Town & New Town CLICK HERE and Stock Island CLICK HERE.

There are a couple of pretty good steals in the 61 properties featured on the above links. Do your homework and checkout the properties. There are two units at Seaside South and one at the Key West Beachside Resort that should be seen by a buyer looking for new quality construction at an affordable price. Unit #121 is offered at $550,000 fully furnished and it has two Transient Licenses.

There are several short sales at Coral Hammock on Stock Island. Unit at 35 is the least expensive and it is offered at only $249,000 for a two bedroom two bath two story unit. It is located off US 1. You can hear the highway traffic when you are outside, but it's pretty quite inside. Unit at 44 is offered at $399,000 and it has 3 bedrooms and 3 baths and a better location.

There are some buying opportunities among the 61 properties on the two links. Some of the properties might work well for permanent residents of Key West. Many of those properties have become very affordable by Key West standards. And a few of the units may appeal to second home owners as well. Take your time and compare the properties.

If you see a property or two that interest you and you want to schedule a showing, please contact me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com.

1130 Royal Street - Key West - Buy It Before It Totally Disappears!

There are some magic moments in Key West, but there is no magic in the world of bank owned homes. For some reason kitchen appliances, light fixtures, ceiling fans, pool equipment and even air conditioners seem to disappear from most bank owned properties.

There is a new listing at 1130 Royal Street (located at the far end of upper Windsor Lane by St. Mary's Catholic Church) that is a bank owned house. The asking price is only $325,000 for this clean little two bedroom one bath cottage of 751 sq ft. The price per sq ft is a mere $433. The lot is 3430 sq. ft. CLICK HERE to read what the listing agent has to say about this property and view current photos.

It appears that the kitchen appliances and the wall unit air conditioners disappeared from this house. (See photo directly above that shows house with appliances and how it looks now.) No big deal, I guess. But there was a big ole' swim spa and outside kitchen that also vanished. (See photo above!) They are gone. But whoever removed left expensive stuff left the smoke alarms. But they took the infernal batteries. Yep, it's BEEP! BEEP! BEEP! (You have to read my blog regularly to get this one.)

Forgetting that nonsense, this house will take a few thousand dollars to put it back together. But not that many. Look at two of the neighboring homes. CLICK HERE and CLICK HERE to see the house across the street to the north and northeast respectively. The house next door to the west is on the market at just around $2 million. This is a good location and the house is priced very competitively for this market.

I've shown 1130 Royal Street twice since it was listed on February 19th. Other Realtors are doing the same. This house is cute and priced right even if is missing parts of the kitchen. If you are looking to find a cute place at a cheap price, please call me, Gary Thomas, 305-766-2642. I am confident that this house will be under contract to someone very quickly.

708 Passover Lane - Old Town - Key West

I can tell you one thing for absolute certain about Key West real estate: you either love houses located across the street from the Key West Cemetery or you hate them. So if you are of the latter persuasion, do not read any further. But if you don't mind tombs with a view, read on dear reader.

There is a very charming Arts & Crafts style house located at 708 Passover Lane that was just listed at the asking price of $650,000 or $923 per sq. ft. The two bedroom two bath house has 704 sq ft of living space and sits on a fairly good sized but odd shaped lot of 3364 sq ft. The house has off street parking and a generous front yard with so many tropical plants that one can barely see the cemetery across the lane.

The inside of the house was redone a few years ago and a pool was added. So this cute cottage has all the modern conveniences. If you are one of those buyers who feels compelled to have granite and marble and stainless steel, this house could be a candidate for a new re-do that will not break the bank simply because it isn't all that big a place. But it is perfectly livable as is. The present owner paid $840,000 for this house in 2005. This is not a short sale either.

On the other hand, some strategic fairy dust and paint could go a long way to make this charmer "pop". CLICK HERE and look at the photo of the off street parking. Imagine how cute the same space could be if the fence surrounded the area and was painted bright white. Imagine Chicago brick pavers instead of pea rock for the surface. Ditch the trash cans while you are at it. Yuck! Imagine your little Key West car sitting in the driveway.

I took some photos of the eight houses on the block. CLICK HERE, and CLICK HERE, also CLICK HERE to see the scary cemetery. You don't need to worry about the neighbors across the street making a ruckus and keeping you awake all night. You don't need to worry about their friends taking up all the parking spots on the street. Same for the other houses on Passover Lane. The properties are single family and there isn't a guesthouse, bar, restaurant or gallery within a couple of blocks.

This is how the listing realtor describes 708 Passover Lane: "Great Old Town Home with off street parking, fenced yard, screened porch, brick patio, cocktail pool and wood deck. Two bedrooms and full bath, lots of windows. Charming!" CLICK HERE to see more photos of this property.

I think some smart buyer is going to snag this house. Everything in Key West seems to be negotiable these days. So I think a smart buyer will act on this. Half of my readers won't consider this house because of the location. So that makes it an easier deal for those who do not mind tombs with a view as neighbors.

If you want to see 708 Passover Lane, please call me, Gary Thomas, 305-766-2642. This is not my listing, but don't let that stop you.

I told you so.......

This blog entry is for you disbelievers and prophets of doom and gloom, more toil and more trouble. It is also for you dreamers who want to buy a place in Key West but who fear that we are not at the bottom of the market.

I thought it would be interesting to see how many properties that I have mentioned in my little blog have actually closed since January 1, 2009. I used the Key West mls database and found that there were 46 closings to 8:30 AM today, February 18.

Here then are the houses that got away:

5601 College Road, Unit C 303 that sold for $399,000. CLICK HERE to see the unit. This sale may actually be good news for you undecided buyers. Unlike the other houses below, there are more of this same type of unit for sale now. This sale probably set the current watermark on pricing at this location. I know some don't like the location. Don't go there to look then. But the buildings are about 15 years newer than 1800 Atlantic and all have direct water views from the balcony with no noise from any nearby road.

525 Margaret Street, hidden Old Town two story house thoughtfully redone. Originally priced at $699,000 and sold for $500,000. CLICK HERE to see this beautiful home.

701 Elizabeth Street right at the top of Solares Hill that sold for an incredible price of $695,000. (Originally priced at $1,579,000.) CLICK HERE to see what you missed dearies.

3 Pinder Lane Old Town. This is absolutely one of the sweetest places I have ever been in my life. I loved this cottage. Everybody I showed it to loved it. It did not have parking, the bedrooms and baths were small, but this place is just magical. CLICK HERE to see the house that originally was offered at $1,390,000 and that sold for $900,000.

716 Olivia Street the Arts & Crafts house that needed just a wee bit of finishing sold in just about one day after a bank foreclosed its mortgage. The original asking price was $2,895,000. The bank owner asked $999,999 and it sold for $1,025,126. CLICK HERE and weep.

With the exception of the condo at Sunset Marina I think you would agree that each of the houses whether big or small is unique. They don't make any more of them. When they are gone, they are gone.

If you are looking for a place in Key West please consider using me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com. Let me help you find your place in Paradise. Don't live your life regretting what you could have done. Do it.