NEAR BREAK-EVEN CASHFLOW WITH 10% DOWN!!!

Definition of insanity-buy this place because you will lose money. I came across this wonderful investment opportunity with the headline of "near break-even cashflow with 10% down" on craiglist. This self proclaimed real estate "investor" and agent wants you to flush your money down the toilet along with him. No one can be this insane to actually believe this poor sales pitch.

P.T. Barnum is alive and well living in sunny South Florida.


" I would like to make you aware of a fantastic investment opportunity in Boca Raton. In fact, I will be picking up a unit for myself as an investment property because the numbers work. Units are only available through brokers at this time. Sales will open to the public around March 25 at a higher price."

"The 2 bedroom Tower units have a total negative cash-flow of only $183.15 per month. I based these calculations on very conservative numbers. For example, property taxes in Boca Raton are 1.75%-2.0%. I used 2 percent. I also used the average price of a unit and not the cheapest. I based this on a rental rate of $1,600, for the Tower units, which is very conservative based on what I have seen for comps in the area. The 1 bedroom units will have a negative cash-flow of $321.23. The 2 bedroom Villa units will have a negative cash-flow of $285.67. I, myself, will be getting a 2 bedroom Villa unit even though the negative cash-flow is slightly higher. I prefer the Villas over the Tower units because the building is newer and because of the lake view. Time is a concern because of the sales center opening about 3 weeks from now and prices going up. If you have an interest in acquiring one of these units please contact me immediately. Also, I have more pictures of the property and rental comps that I can email to you. "

Here are some pictures of this fantastic time-sensitive opportunity.

Notice the lovely 35 year old cabinets. This place has all of the flipper signs- Stainless steel fridge, appliances, fresh paint.

















Here is the living/dining room. Thrilling isn't it?
Better keep those verticals open or you won't be
able to see in there. Looks like an apartment..
Oh wait, it is.







Here we have a view of the...er.. parking lot. No garage. Looks like just another apartment complex to me.. oh wait, it is.

But don't forget the negative cash flow.






I have NO clue where this person gets a $1600 monthly rent for a 2 bedroom in Boca Raton. Look in the paper and there are rentals from $1100 to $1500 all day long for much nicer places. There are HOUSES that can be rented for $1600 a month. We are talking about 35 year old condos.

I have owned and rented real estate. I have NEVER had a negative cash flow on rentals. That is simply nuts. The fact that this person is going to do it himself speaks volumes. Prices are dropping like rocks for condos in Palm Beach and he wants you to buy a condo conversion knowing it is a loser from day one.

For those of you that do purchase one of these, I have some beanie babies, a few cabbage patch dolls, a couple of boxes of baseball cards, and a pet rock I will sell you real cheap. But hurry as the prices go up March 25.

Oh, I forgot to add.. here is the information from State of Florida License Information on the "investor"/agent.

Licensee Details
Licensee Information

Name:
LECHUGA, LUCAS THADEO PA (Primary Name)

License Type:
Real Estate Broker or Sales

Rank:
Sales Associate

License Number:
SL3127881

Status:
Current,Active

Licensure Date:
06/27/2005

Expires:
03/31/2007

Special Qualifications
Qualification Effective

Professional Association
10/19/2005

Nice to know he has been a seasoned "investor"/agent since October 2005, right at the top of the bubble.