419 E Tarpon Avenue, Tarpon Springs, FL 34689

Description

Attention all Investors looking for a 6% Cap Rate! The property consists of 2 separate buildings with a total of 5 units! The first building ("The Cottage") is 1080 Sq ft is currently rented as a vacation rental. No detail was overlooked when this unit was remodeled, and a New Roof was installed June 2022! On the first floor of the cottage is a laundry room that brings in $3,600 annually and a workshop that can be converted into an efficiency. The cottage has been wired for a split unit AC system. Currently the cottage has an 80% occupancy rate as the owner self manages the property. As a result of traveling, the owner frequently turns down bookings. The current cap rate of 5.99% is based on this 80% occupancy rate, 90% occupancy rate of this unit and the additional rental unit will bring the cap rate to 7.33%. This unit comes fully furnished. The average nightly rate for this cottage is $130 a night but during peak season it rents for $140 a night. Cap rate as presented is based on the nightly rate of $130 a night and 80% occupancy rate. New owner could choose to continue to Airbnb it or live in this separate building while renting out the second building for income. In the alternative, if they are not interested in running an Airbnb, the new owner could also choose to convert the vacation rental into an annual lease rental. The second building is 3,542 Sq ft and has been recently painted grey with white trim which consists of a total of 4 units. Three units are on annual leases and one that is rented as a vacation unit. The three units on annual leases consists of a 3/2, 2/1 and 1/1. The vacation unit is a 1/1. All units have its own private separate entrance and 4 separate meters. The landlord has never allowed smoking in any of the units, and all are pristine. The 3/2 bath unit has new stainless-steel appliances, a new shower, new fans and new counter tops. It also has been recently painted. This unit is on a two-year lease that ended 4/2024 and rents for $1900 a month. This unit also has its own porch giving the tenants the ability to sit outside while enjoying the sunset as well as central heat and a/c. The 2/1 bath unit has a long-term tenant that currently pays $1,400 a month. This unit has been completely remodeled and also has its own laundry room as well as central heat and a/c. The 1/1 rents for $1,100 a month and has long term tenants that have been renting the unit for over three years. The final unit in the main building is a fully furnished 1/1 with new flooring and has a 80% occupancy rate. Stainless steel appliances, a dishwasher and recently remodeled this unit must be seen. Average rent for this unit is $110 a night but during peak season it is $120 a night. Cap rate as presented is based on 80% occupancy rate at $110 a night. Plenty of off-street parking, 6 spaces total, as well as plenty of available street parking. Recent 4 point done. This property is downtown living at its finest. Located on Tarpon Ave it is a 5-minute walk to local restaurants, a wine bar, antique shops and more! Every first Friday of the month, Tarpon Ave. is filled with live music, vendors and more, bringing the community together for a fun event. If you want to spend the day at the beach, Fred Howard Park is only a 15-minute bike ride and one can get to the Pinellas bike trail within minutes. This neighborhood is safe, and jam packed with things to do from the Aquarium to spending the day at the historic Sponge docks.