From the front lines of the housing bubble, and direct from the father of Cale in the Keys, here is an update on the Key West real estate market. Dad doesn’t know I posted this, but he’s been putting these reports out every month for ten years and he’s got quite a following among the more analytical real estate folks down there. ROIs are starting to look attractive for some multi-unit properties in Key West.
On real estate in Key West:
The local real estate market has been active…lots of showings, and lots of properties on the market. Even with historically low interest rates, many buyers are using cash. There have even been lots of closings, mostly distressed properties and mostly lower-priced. But occasionally, there is the $2+ million transaction, too. I would have to say, in spite of much heartbreak out there, that properties are moving. Bittersweet…great for buyers, not so much for sellers.
In Old Town Key West:
1214 Catherine Street was reduced again! Combined with 1212 Catherine St, the 6-8 units generate about $120,000 annually, and you can buy the complex for under a million. Pay cash and that’s 12+% on your money to take over ownership, same tenants, no changes. Finance 75% and still clear $5,000 per month! What am I missing?
Spoken like a value investor. Must be something in our genes.