809 Eaton Street - Key West - Short Sale of Significant Importance

809 Eaton Street in Key West is now offered as a Short Sale at the asking price of $2,295,000. That's a lotta money! But this is a lotta house!  The listing Realtor describes the property this way:

"Classic 1800's Old Town property which is a combination of the Henry Lowe House and the Samuel Kemp House, built in 1840. This 5 bedroom / 4.5 bath 3 story home with 1 bedroom / 1 bathroom guest cottage has all the amenities you're looking for! This historic home offers a spacious living area with large open kitchen which is great for entertaining. Additional features include large porches throughout, high ceilings, Dade County Pine, hardwood flooring, large covered deck, fantastic pool & Jacuzzi & off-street parking. Converted cistern as wine cellar. There is also a 60,000 watt generator so you're never in the dark. On the National Registry of Historic Places."

I have written about this property before.  809 Eaton Street in Key West dates back to circa 1840 when it was built for Henry Lowe. The house was totally restored and enlarged in 2005 when it was featured in the Old Island Foundation House Tour. Today this home is one of the finest examples of a Bahamian styled home located in the Old Town Historic District.

Many of the Key West's founding fathers were expatriates from the Bahamas. They brought with them the architectural style and construction techniques with which they were familiar.  Bahamian styled houses were placed on piers and had wood frames and had tall ceilings and large windows with Bahama shutters which permitted air to circulate through the house to provide natural cooling. The houses were built with wood clapboard siding. This home has a stunning wrap-around porch on the first and second levels.

I dug deep into the old shoebox and found a photo of the roof of 809 Eaton Street (black and white photo immediately below) that from 1914.  I just love the look of Key West back in the day. You can see that the Historic Seaport is only a couple of blocks away. Note all of the smaller buildings which back then were cook houses or privies.  I found another photo of 809 Eaton Street that was taken in 1965 (black and white photo second below). The house would have been about 125 years old when that pic was taken. The large building in the foreground is the backside of the Island City House.  Nearly half a century later 809 Eaton Street looks as prominent as ever (color photo below).

I recently found a photo of 809 Eaton Street that was taken in the 1960's from the Island City House located across the street. The outline of a man standing on the porch reminds me of Freddy in the Nightmare on Elm Street. I took a photo from the same location just to prove the point that once what was is often still the same on our little island where historic homes are preserved - not destroyed.

This house has 4712 sq ft of living space divided between the main house and the guest cottage. The main house is a very large three story home. The main floor includes a spacious living room, dining room, family room, and extra large kitchen and pantry. The master bedroom with en-suite bath is also located on the main floor at the left rear of the home.  There are multiple sets of French doors that line the back of the house that open out to the loggia that overlooks the long rectangular pool, garden, and guest cottage. Dual entryways from the living area flow into the informal family room and kitchen at the rear. This creates a feeling of less formality than the photos rich with architectural detail might suggest.

The gracious staircase leads to the second floor where there are three bedrooms and baths. Each of these bedrooms open onto the wrap-around second floor porch. A smaller staircase leads to the third floor which has a dormitory style bedroom plus bath which as a view looking toward the Gulf of Mexico in the distance and the pool, garden, and guesthouse in the foreground. If you counted them, there are four bedrooms and baths in the main house plus a fifth bedroom and bath in the guest cottage.

This home would make a great vacation rental. There are just a few homes as large as this in Key West. This home ought to appeal to wedding parties, family reunions, friends travelling together, and business groups that require sophisticated lodging in an understated luxury environment. 

The interior finishes and materials are all of the highest quality. While the house is rich in history and the house itself has several formal living spaces, most of the living areas on the inside and outside are quite relaxed. The family room and kitchen are essentially one large living space with a vaulted ceiling with skylights and multiple sets of French doors that bathe the space in light.

It is the outdoor living area that will probably entice that special buyer to select this home. The rear loggia overlooks the pool and spa which are surrounded by bricked walkways and sunning areas. The guest cottage on the west side was built as part of the 2005 restoration and expansion. The cottage has a separate sitting area in the bedroom, bath, and mini-kitchen each with views of the pool.


The home has two off street parking spots - one adjacent to the front entrance and a second at the rear.  The whole house generator will provide electricity to keep you comfortable and cozy in the event of power failure elsewhere on the island. CLICK HERE to view more photos of this incredible Key West property.

This is a very large house with an extra large guest cottage. You can see it has a great outdoor entertaining area with an extra large sunny pool. The property is located two blocks south of the Historic Key West Seaport and only four blocks from Duval Street.

Nearby Key West Seafood Market

 The mortgage on this Short Sale property is held by a local Key West lender. That suggests to me that a serious offer would get serious and prompt consideration by that lender. I have negotiated a large short sale purchase with this same lender before. 

CLICK HERE to view the Key West mls datasheet and listing photos of this special Key West home which is a Short Sale offered at $2,295,000. If you area qualified buyer and would like to see this special home, please call 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.

Vacation House for Free - Not Available in Key West!

I watched an episode of Vacation House for Free on HGTV yesterday afternoon. It was filmed at Marco Island, Florida earlier this year.  I was immediately skeptical of the show's premise because there are very few things in life that are free. I had never seen the show's host Matt Blashaw before so I knew nothing about him. Even with my preconceived skepticism, I was immediately taken by Matt's good looks, exuberance, and charm.

As I watched I said to myself this guy is doing kinda what I do in my blog when I write about what a potential buyer could do if he or she bought a fixer in Key West. Matt offered the buyer his concept of how the property could be renovated and presented a budget to complete the renovation. Matt told us the acquisition cost and construction budget which it seemed to me to be the total cost the buyer would pay. However, the budget  did not include cost of furnishing the house.

As the show progressed I came to understand that one of the houses would actually get fixed up during the hour program. The buyers selected what looked like a 1960s or 1970s vintage home on a golf course. Since the selected house had a slimy pool and some interior mold, I suspect the house was bank owned. The buyer got the property at a good price - a price you could never get in Key West.  As construction began old aluminum wiring was found which necessitated rewiring the house. (Not sure if the buyer or HGTV paid the tab for that unexpected problem.)  Matt's crew demolished and rebuilt the kitchen, updated the baths, painted the inside and exterior, and created a new front entry. The crew resurfaced the pool and deck, replaced an outdated spa with a new one, added a fire pit, and captured moved the fence to the rear lot line which dramatically enhanced the back yard. I think the design and execution on the inside and outside was spot on. Matt and his crew did a remarkable renovation.

But I have a problem with the program as a whole because of the show's premise that a buyer can purchase a fixer, do some renovations, and simply rent the property for 16 weeks a year after which will pay the annual mortgage and that the new owner will own a vacation house for free.  The show's website states:

 Matt Blashaw realizes couples' wishes to own a vacation home mortgage free. The secret? He helps them shop for and renovate a "diamond in the rough" home in their dream location to command top dollar as a vacation rental. The end result? The couple rents out the renovated home for maximum income part of the year, covering all their annual expenses. For the rest of the year they live in a Vacation House for Free!

It does not work that way  - at least it does not work that way in Key West. And here is why.

First, our housing prices for "fixers" are very high.  If you have read my blog for a few months, you will recognize the best areas to own a vacation rental house is Old Town, but not just any street in Old Town. Renters can be particular. Many may shy away or downright avoid locations with views of the cemetery or on busy streets like Eaton, Truman, Simonton, White,  or Whitehead.  Some people will avoid areas like Bahama Village, the Meadows, and even Casa Marina because they are not close enough to Duval Street or for other reasons.  It seems even in Old Town, proximity to Duval Street makes any property more appealing than a property that requires a long walk or a bike ride. That locational aversion may make some outlying properties less easy to sell as a potential vacation rental but it does not result in a similar price reduction. A typical "fixer" may cost more than $500,000 for starters. Renovations may cost an additional $250,000 or so. And it may take a year to get the project completed. If my estimate is correct, a new owner would have to add one year of no income but lots of money going out as the fixer gets fixed.

When looking at houses that they might want to rent as a vacation rental to put themselves in the shoes of the potential renter. I remind them some people save all year to have there annual one or two week vacation in Key West. I ask them to view the house and location the way a new renter would. A happy renter will come back year after year. An unhappy renter will let the world know about his experience on Trip Advisor.

Second, construction costs in Key West are very high.  I try to persuade buyers to look at  houses that meet their needs rather than take on a construction project. Getting a house renovated in Key West costs more money than it does up north in America. While you may be able to buy a Kenmore refrigerator for the same price in Peoria, I'll bet that you will pay more for an Anderson window, TREX decking, or a common nail in Key West. The merchants of Key West will tell you it costs more money to bring supplies down here.  It does. But once those big trucks are filled, the incremental cost is negligible. The fact is the companies can charge more for their wares and they get it.  Labor costs are very expensive here.  Many general contractors and architects are now quoting $300 to $400 per sq ft in renovation costs which is bare bones. Upgrades are always priced higher.  

Third, I listened for but did not hear Matt Blashaw discuss "insurance", "taxes", or property management, or operational costs.  All that I heard him say was "mortgage expense".  Now if the buyers' mortgage includes taxes and insurance, the better for that buyer.  Readers of my blog know that insurance costs in Key West usually include separate policies for wind insurance and often for flood insurance. These costs can be significant depending on the age, location, and condition of the property being purchased. Fixers in Key West are less likely to be located in the X Zone for flood insurance purposes and probably do not have new roofs, straps, and Dade County approved storm shutters which would provide mitigation credits to reduce the annual wind storm insurance costs. As a result, sometimes some buyers get big surprises when they learn how much it costs to insure event the simplest of structures.

Beyond insurance is the cost of putting heads in beds.  A new owner has to buy furniture and furnishings to outfit the new vacation rental. Those costs include dishes, linens, tvs, art, etc. Furniture from the old rumpus room may not exactly work in a Key West vacation rental.  (I had one buyer who was confident his mahogany dining room set would fit right in to the condo he planned on renting.)

But the real cost not mentioned by Matt Blashaw is property management. I listened for him to discuss property management. I am confident I did not hear him utter those words or anything like the concept. How does a new owner get their new house or condo rented?  Well, you could try VRBO or some similar site. You'd need to find someone to check-in and check-out the guests, clean the house, take care of problems, clean the pool, maintain the yard, etcetera.  More likely you would engage a property management company to do that service for you. Most companies charge about 20% as the management fee. But not all companies provide the same services for that fee. I sold a house to one man who called me up so mad I could see the steam rising through his hair. He signed a property management agreement with a company that charged him $25 to take the green trash can to the street and another $25 to return it to its storage place. The same company charged $25 to check-in a guest and $25 to check the guest out. The buyer found out there were a lot of miscellaneous fees that this company charged that he had not expected.  Not all companies do this. Read and question before you sign a property management contract. It might end up like buying a used car.

And that is why I think the premise of Vacation House for Free is faulty - at least in Key West. Once the house is renovated and furnished, the new owner has to put heads in beds. I think the real number potential vacation rental owners ought to consider is around 40% which will probably include all utilities, pool service, yard service, credit card and bank fees, housekeeping, supplies, repairs, maintenance, bookkeeping, and so forth. If Matt Blashaw included those real costs in his program, buyers would at least have a better sense of what they are getting themselves into.

There is no such thing as a free lunch and I really doubt there is any property anywhere that approaches being a vacation home for free. I wish it were so. My job would be so much easier.

920 Pohalski Lane - Key West - Bank Owned

Just Listed, but not by me, 920 Pohalski Lane in Old Town Key West. There's truly good reason to jump for joy on this listing because this architect designed home offers designer features at an affordable price - $494,025.  This Bank Owned property was renovated and expanded around 000000. Today the house has 920 sq ft of living space divided between the first and second floors. The house sits on a good sized lot of 1925 sq ft (55' X 35'). There is off street parking in front, a large decked rear yard, and a side side yard on the north side of the property. CLICK HERE to view the Key West mls datasheet.

The listing Realtor describes the property as:

"Redesigned 2/2 historic home with a unique floor plan. Upper level master suite, french doors from living room and kitchen open to a private deck with an in ground spa. Fully fenced for privacy." 

I looked in my old shoebox and found a photo of 920 Polhalski Lane that was taken about fifty years ago. The house was enlarged with a two story rear addition that now contains the living room with vaulted ceiling, kitchen, laundry room, and second floor master suite with vaulted ceiling and en-suite bath. A set of pocket doors open from the master suite to reveal the spa in the decked rear garden area.

The photos above show the generous usage of wood throughout this home. This is "new" wood as opposed to historic Dade County Pine.  I have shown this house several times over the years. I appreciate the almost "cabin-like" or masculine feel of this home. The living room and guest bedroom and bath share the first floor. A full bath is located off the living room but it is not en-suite to the bedroom. French doors at the rear open out to a partially covered rear deck that leads to the separate kitchen which is separate from the living area.  Pocket doors open to reveal the kitchen tucked into a comfy rear corner of the house.

The second floor master suite is magical. The vaulted ceiling gives this space such an expansive feel. Upper level windows punctuate the lower window and pocket doors to give the interior more light and to provide a dramatic element to the otherwise understated wood room. 

920 Pohalksi Lane is located less than half a block north of Truman Avenue and across the way from the Truman and White Chevron Station. The Coffee Mill dance studio and Zumba fitness is located next door to the north. The best fried chicken in town is sold 24 hours a day at the Citgo gas station opposite the Chevron station. Most of the gyms and yoga studios are located within two blocks of this location. The location will appeal to a hip buyer that appreciates being able to be close to most of Old Town and that wants to buy a place in good condition at an affordable price.The house needs some painting and cleaning, but otherwise looks to be in good condition. CLICK HERE to view more photos I took of this property.

If you would like to see 920 Pohalski Lane, please contact me, Gary Thomas, 305-766-2642 or send me an email at kw1101v@aol.com. I am a buyer's agent and a full time Realtor at Preferred Properties Coastal Realty, Inc. in Key West.

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