WatchWhats everyones opinion on this little setup...... development goes into foreclosure, lots left unbuilt. Properties are then hawked round to international buyers with promises of easy mortgages and cash-positive rentals???? Presumably relying on the fact I'm not in the States to check this out...
I'm tempted, but is it true? Can there really be such a thing as a free lunch?
was around $375k+something, reduced to 260k with goodies..... using Go ogle its like a field some miles from the town itself. I guess this may affect its valuation somewhat. Negatively.
What I like best is the way the road just stops...... although could always be a problem with outdated Go ogle i guess.
paste this into your maps.google.com to see the half finished glory that is Millstone Landing:
27.567342,-80.421295
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46 male
Menlo Park, CA
I just clicked on the "map" link above and see it was a plot of dirt when that satellite photo was taken. Hard to rent out dirt, so I don't think that particular address is going to be a cash-positive rental. Even for the others, I'm not too sure people would want to pay any significant rent to live there.
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46 male
Menlo Park, CA
Here's the image from Google maps. Just to show off how you can add images to comments now.
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yes thats the development, not the actual plot, plenty of scope for, ahem, expansion.... it seems about 150 of 600 plots have been built, the rest are in limbo.
(Where's limbo? must be getting crowded there :-))
Its just such a tempting price with a 100% mortgage offer from an outfit known as "Bank of America".
I feel the need to "buy and hold".
However it would reduce me to tears to have to buy and hold and fund.....
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Zooming back from that Vero Beach development is interesting too.
The manufactured waterfront development is amusing, since it's built up to farm land--and 6 miles west of the actual beach (that gator-infested lagoon doesn't count)
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yeah the beach bit is a somewhat misleading.
although as i'm from the UK any wildlife bigger than a squirrel prompts sneaking admiration and amazement.
the selling agent says these are March 08 images and that if only I could see an up to date preview I'd see lots of improvements.
still its a lot of real estate maybe towards the bottom of the trough, albeit the best we can hope for equity wise is a nike swoosh shaped recovery.... imho.
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jono2000, I'm somewhat familiar with Vero Beach.
Seems to me that property is a dime a dozen, and, there are "abundant" rental vacancies in the area (everywhere, really).
The $2100 rent figure seems a little high, too.
Be careful...........
"the selling agent says these are March 08 images and that if only I could see an up to date preview I’d see lots of improvements."
What a class act this agent is -- maybe between shifts at Taco Bell he/she could get off his/her @ss and actually SEND you some updated pictures??
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Yes, and there's a big difference between renting out to vacationers per/week or to people who work nearby, in terms of prospects for rent. For coastal vacation rentals, obviously the highest rents are for properties right on the coast. Check out VRBO.com for rentals coastside of Vero Beach.
Buying a place as a vacation spot could be preferable over a timeshare property. But, after all that expense, you're compelled to stay there. So you better really like the location! Best to first visit Florida, get a feel of the place, and then go from there. As an example, I go to Hawaii a lot--a few weeks/year. I avoid resort hotels, because there are so many nice coastal homes to rent--and far less than a daily resort rate. I'm sure the situation is the same in Florida--especially now.
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ahhh thanks for the input.
The agent is a "pump and dump" internet seller, sub contracting from a "prime" agent who themselves are going to an individual who's put together the foreclosure deal, in this case I understand for 70 homes. Not sure of the situation, but in the UK 1-1.5% is average commission, so you don't tend to get too much effort on the part of the agent.
The interesting thing is googling the name of the deal maker returns several "problem" stories and 2 collapsed companies, which raises something of a red flag, obviously.
The real attraction is not so much the price, which is "OK" to quite good, but that I can, from my armchair in the UK arrange 100% Bank of America loan at 6.2% Again probably high, but if its covered by rent, then who cares, in a couple of years I'll look at where we're heading with equity. Bottom line is it doesn't have to be perfect if its paying for itself. It bloody does if it doesn't pay for itself.....
I dunno..... i'm backing away from this, wait a few months.
In the UK theres no regulation on "international" sellers and they always come up with "we've only got a handful, most are gone, buy now... etc." additionally not sure how it works in the states but the agent is entirely funded by the seller.
They were $400+ initially discounted by the builder to 365, now in forclosure discounted again to $260k with first year mort paid (by rent!) and closing costs covered. the houses were upscale (shelby homes, Millstone landing, now sadly in foreclosure).
it would be let out to US families, not vacationers. In my experience quieter parts of the world are often a better bet for bringing up families than the glitter of the cities, so hoped for a sensible tenant, guess I'm living in the past or something. The agent was saying its a top small town place to live in the US, errr... came 12th in the 2006 small towns awards by someone or other. No deals ever perfect, some guy can always point to a better deal, but what I want is to come back in 5-6 years, having had renters pay the mortgage and find the equity is in a healthy condition substantially more than the purchase price.I'll take a view at that point....
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Honestly, those are big ifs—but who is better to judge the local real estate situation than someone who lives in that area of Florida (excluding realtors)? As you initiated this thread, perhaps you have already have done research which would benefit this discussion, such as:
• Total monthly costs, including BofA's 100% mort @ 6.25?, plus local property taxes, insurance, maintenance, and HOA fees (if applicable)?
• What are the costs for a local property management company to act as landlord to your tenants? What happens if your tenants miss their payments?
• What is the real monthly rent the market will support for your property—what is the median? And, what is the square footage, bedrooms and baths for this particular property?
• What is the local inventory of unsold homes, and how many of those are prospective rentals (ie price competition)? How is the local economy—is it moving up or down?
Those are just a few points to consider—are there any others?
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b/b 4/3.
garages 2
storys 2
sq ft 2,998
original price$375,000
new price$262,500
closing costs paid $11,250
first yr mort paid $16,406.25
mnthly mortgage $1,367.19
tax $282.31
community charges $209.86
monthly rent $2,099
mgmt charges $210
alleged profit $239
kurt i've attached a brochure page for the heck of it.
from your list its the "real monthly rent" i'd be interested in.
where can i find the local inventory of unsold homes for given area, zipcode etc?
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Vero Beach - Retirement for the rich - rents for normal people would be about 500- 900 - hit very hard by bubble - There are a number of these developments far from the beach. I stayed in someone's condo there and felt like I was out in the boon docks. There are people who love it there. For me there was nothing to do. They roll up the sidewalks at 6pm. I can not imagine finding anyone willing to pay over $1000 for rent there unless they had a company paying for their rent.
No more Dodgers spring training. No more circuit city. There is a shopping mall.
It did not work for me. I wanted to be near the parks and things to do. I did not go to the beach that often. Turtle nesting season or sharks just seemed to not invite me.
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Hi Jono2000. I have also been offered the same deal and the thought of the growing equity with nothing to put down if the rent covers teh mortage and there is no costs to come out of my pocket - why not? But there are some concearns like the achievable rent, te actual value of the property in today's market and the location in terms that US citizens seem to feel 6 milies from the beach is far so could have an impact on renting.
Did you go through with the deal in the end?
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hi,
so did you go through with the deal in the end? i have a commitment letter from an orlando mortgage broker to close on the same deal in millstone, be interested to see if its through the same guy.