Flip ???

I am sure you have all seen the new listing in Windward East. If you have been reading you will remember that one property that I recommended as a good buy was the 1 bedroom unit on the 1st floor that was listed at $179,900, I said if you really tried to keep it rented you would almost be in a positive cash flow situation. The unit closed for $155,000 which was a great deal for the buyer.

Well it looks as though the 1st flip in our 3 complexes is trying to be accomplished in a very long time. This unit is back on the market at $190,000. The old rule for turning Real Estate was that it has to be closed for a minimum of $10,000 return to the investor. This is close but it could be done. In a slow market the fly in the punch bowl is the carrying cost. Even if you paid cash you are still paying condo fees and taxes each month until closing. So you can see that it is imperative that you close quickly. The problem is that in the market today even though we see some improvements there are very few quick closings. I wish them the best of luck and it would great to see a flip.

Other possibilities

The front buildings in the Diplomat have had closings at prices that could also come close to being cash flow positive. There have been 4 closings this year in the front buildings. The average list price was $161,100 the average closed price was $131,750. The last one was listed at $175,000 and closed at $112,000. Now at this price if you crunch the numbers and wait for the rebound, an investor will look at these units. When I see the shuffleboard tournaments it sure looks like people enjoy staying there.

Optimism

I have cautious optimism about the remainder of the year. There have been more sales this year than the same period last year although the sales prices are down for the same period.

We have a long row to hoe but we are getting there!

Jim Bagwell

Any news that is news!

Hope all is well in our little beach world!

Has anyone else encountered the crazy crane that visits our backyard at Windward East? This beautiful bird comes in for a landing in the grassy area and walks around giving the eye to anyone who happens to be outside. Now I am not a timid person but when he walks right up to you and looks you in the eye at least I think he is looking you in the eye since his eyes are on the side it totally freaks me out so I usually run inside like a little girl.

New activity

Two new listings in the Diplomat. Direct ocean 2/2 900 sq ft priced at $375,000 this is on the top floor so it may get offers but the competition is fierce. Front building 2/1 750 sq ft priced at $162,000 on the 2nd floor. The front buldings are priced all over the place.

Reduced price

there is a home on Esther that is now priced at $599,900. This home sold in 2005 for $400,000, it was then taken down and rebuilt. It is now a beautiful 2 story home with 3250 sq ft 5 bedrooms 3 1/2 baths with dock and all the bells and whistles. The downside is the street is year's away from catching up to this home. If however one wanted this for their home and not instant gratification then you could enjoy this beautiful waterfornt home and wait for the equilty to build.

Hang in there and don't take any wooden nickels.

Jim Bagwell

Update

I hope everyone is doing well on this cloudy Sunday in Beautiful Cocoa Beach.

Even when the sun is not shining we are in one of the greatest places around. Just to give you an update on what is happening with our complexes. We do have some new listings and as usual they vary greatly in price. Everyone is still trying to find the magic price.

The Diplomat

There are 2 new listings in the front buildings.
Both are 2 bedrooms 1 bath with about 750 sq ft. One is priced at $175,000 and the other is priced at $153,000. There is also one of the big units direct ocean units listed at $699,000. This will be a very difficult sale for obvious reasons. We are still in a definitely buyer's market. There are brand new units with more sq footage priced well below this price. There is also an auction coming up on May 17 to sell 10 units in Mystic vistas in Cape Canaveral, this will be an absolute auction with no minimum bid and no reserve. The choices are out there so to sell a high end unit in an older complex is very difficult.

Windrush

One new listing is a 2 bedroom 2 bath with over 1500 sq ft and a 2 car garage. This unit is a side unit with no view but priced at $220,000 it will get some looks.
Top floor sold for $325,500 listed at $375,000. I think this was a great buy with the views.

Windward East

No Activity.

Overall Market

Sales are increasing county wide but have decreased a little in Cocoa Beach/Cape Canaveral.

There has been a definite decrease in the number of RE agents and companies. The correction should have been anticipated but the severity was not anticipated. We will be here if you need us.

Jim & Ada Bagwell