Real Estate

Pros & Cons of 956 Tall Pine Dr, Port Orange, FL 32127

Investing in real estate can be a rewarding venture, and this property offers a unique blend of charm and functionality. With its appealing curb appeal, fully renovated interiors, and a relaxing outdoor space featuring a pool and spa, it presents a strong case for potential investors. However, it's essential to consider the financial metrics, which reveal a negative cash flow and a modest cash on cash return. While the property boasts a solid cap rate of 6.7% and a reasonable net operating income, the monthly cash flow indicates that it may not be the most lucrative investment at this time. Balancing these pros and cons is crucial for making an informed decision.

What are the Pros of 956 Tall Pine Dr, Port Orange, FL 32127?

Charming curb appeal and inviting outdoor space enhance rental attractiveness.
Fully renovated interiors, including a large primary bedroom and updated kitchen, appeal to potential tenants.
Strong cap rate of 6.7% indicates a potentially profitable investment.
Open concept living space conducive to family gatherings, increasing tenant desirability.
Fenced yard with pool and spa offers additional recreational value.

What are the Cons of 956 Tall Pine Dr, Port Orange, FL 32127?

Negative monthly cash flow of -$25 may deter some investors.
Cash on cash return of -0.4% suggests limited immediate financial gain.
Potential maintenance costs for the pool and spa could impact profitability.
High gross rent multiplier of 14.2 may indicate overvaluation.
Debt service coverage ratio of 1.1 is on the lower side, indicating tighter cash flow.

What are potential Red Flags or Risks with 956 Tall Pine Dr, Port Orange, FL 32127?

Negative cash flow could lead to financial strain if not managed properly.
Market fluctuations may affect rental demand and property value.
Renovation costs for upkeep of the property could arise unexpectedly.
Dependence on the pool and spa for tenant attraction may pose risks if they require repairs.
Potential changes in local regulations affecting rental properties could impact profitability.

Property Details for 956 Tall Pine Dr, Port Orange, FL 32127

Property Detail Name	Property Detail Value
Address	956 Tall Pine Dr, Port Orange, FL 32127
Property Type	Single Family
Price	$389,000
Price Change	-$6,000
Tax Assessed Value	$294,312
Non Owner Occupied?	Yes
Pre Foreclosure Auction	No
Bedrooms	3.0
Bathrooms	2.0
Living Area	1,680.0
Lot Area	9147.6
Lot Area Unit	SQFT
Year Built	1980

Weighing the Investment Potential

In conclusion, this property presents a mix of appealing features and financial challenges for potential investors. The charming aesthetics and modern renovations make it a desirable rental option, supported by a solid cap rate. However, the negative cash flow and low cash on cash return raise concerns about immediate profitability. Investors should carefully consider their financial strategy and long-term goals before proceeding. While the property has potential, it is essential to weigh the risks against the rewards to ensure a sound investment decision.

Financial Summary for 956 Tall Pine Dr, Port Orange, FL 32127

Financial Metric Name	Financial Metric Value
Cash on Cash Return	-0.4%
Monthly Rent	$2,288
Net Operating Income	$2,171
Cap Rate	6.7%
Monthly Cash Flow	-$25
Gross Rent Multiplier	14.2
Debt Service Coverage Ratio	1.1
Principal and Interest	$1,959
Tax	$237
HOA Fees	$0
Insurance	$117
Total Payment	$2,313