Islamorada and The Upper Keys

322 Toll Gate Shores Dr, Lower Matecumbe, FL 33036

536337 Residential Active $2,875,000

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Provided as a courtesy of Carol Ann Amend Coldwell Banker Schmitt Islamorada FAX: (305)664-4111 Cell: (305)304-9405 CBSRE Office: (305)289-6617 Office: (305)664-4470 800 Number: (800)207-4160 ext. 6617 Coldwell Banker Schmitt 85996 Overseas Highway Islamorada,FL 33036 carolinthekeys@aol.com http://www.islamoradaagent.com

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Range Pricing: No Limitd Reprsntation: No As is Rght to Inspct: Yes Off Shore Island: No County: Monroe Subdivision: Toll Gate Shores (73.5) Area: 22 - Lower Matecumbe Side: Bay/Gulf Flood Zone:   Handicap Access:   Alternate Key #: 1479217 Add'l Parcel #1:   Add'l Parcel #2:   Parcel #: 00390900-000000 Bldg Nbr:   Zoning: R1 - Residential Single Family Use Lgl Non-Conform:   Deed Restrictions: Unknown Taxes: 16,083 Tax Year: 2004 Style: Single Family Waterfront: Yes Condo Unit/Complex:   Pool: Yes Year Built: 1973 Total Units:   Lot Size: 1 1/4 acre Lot SqFt: 54,800 Acres: 1.26 Living Apx SqFt: 3,995 Total Bedrooms: 5 Full Baths: 5 Half Baths: 0 Total Baths: 5 Rentals Allowed: With Restrictions Min Rental Days: 28 Max Rental Days:   Auction:   Sold Comments:

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Remarks - Consumer: BEST PRICED BAYFRONT PROPERTY IN ISLAMORADA! EXQUISITE ESTATE ON THE BAY! This outstanding 1 1/4 acre bay front estate offers complete privacy & is situated on a peninsula surrounded by over 700ft. water in beautiful Islamorada, Florida Keys. This solid concrete home offers panoramic bay views 5 bdrms,5 bthrms,elevator, gourmet kitchen, pool, beach, dockage for all size boats & so much more! Directions: Mile Marker 74 Bayside. Toll Gate Shores. Legal: TOLL GATE SHORES PB4-39 LOWER MATECUMBE KEY PT TRACT A OR571-787 OR573-94Q OR829-966/967

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Fee Includes: None Tax Exemptions: Homestead Control Depth: 4 Feet Waterfront: Bay Front; Open Water Waterview: Bay View; Open Water View Dockage: Dock: Composite Building Style: Stories: 3 Stories Vehicle Storage: Carport; Attached; Car(s): 4+ Furnished: Unfurnished Cooling/Heating: Ceiling Fans; Central A/C; Heat Porch/Balcony: Open Porch/Balcony; Screened P/B Utilities: Aerobic System; FKAA Interior Features: Drapes/Blinds Incl; Elevator; Pantry; Smoke Alarms; Storage Specialty Rooms: Laundry Room Appliances: Dishwasher; Dryer; Microwave; Range; Refrigerator; Washer Exterior Features: Sprinkler System Pool Info: In Ground; Heated: No Construction: CBS; Poured Concrete Cnst Windows/Doors: French Doors; Single Hung Windows Shutters: Accordion; Roll Down Electric Floor: Carpet; Wood Floor Roof: Metal Roof; Shingle Roof Pets: Pets Allowed Neighborhood Feature: Other Area Features Security: Electric Gate Land Size: 1 Less Than 2 Acres Terms: Buyer Obtain Finance Title: Title Ins - Buyer

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List Price:

2,875,000

Florida Keys Investment opportunities

With all the abundant recreational opportunities mixed in with a great climate the Keys attract people...lots of people.
Tourists in turn need places to stay and people relocating need places to rent either part time or while they close on a home or find an apartment. The Keys are definitely a happening place.
Types of Investments

Aside from commercial investments the two situations most people are looking for in Florida are
• Vacation homes or Condos that can be rented out … Generally a purchase involves a 1031 tax exchange or just someone looking for a second home in an area that he/she or the family will use occasionally.
• A person looking for a home to eventually retire to and rent out in the meantime to help pay the mortgage.
• The best areas to rent are anywhere near the water and the best rents will start at open water locations, followed by homes/condos with a partial view to homes on canals. The neighborhood and the furnishings will also dictate the rent amounts you can get. In the Keys-the best situation was a home at least three bedrooms and up on the Ocean or Gulf with a pool and a boat dock. In some cases these bring as much as $5000.00 per week, depending on the home/area.
• It is very important that you find out early on which residential areas and which condo associations allow weekly rentals-as this will be generally be your best return.
• In some cases you may want to just rent out long term and skip the dealings with handy men and cleaning services.
• In all of this—the most important thing is that you find a qualified adent. He/she can guide you through the process completely—including setting up property management.

As to The Keys and it’s areas-where would the best rentals probably be located?
• *A condo or single family home anywhere on the water-either Ocean or Gulf or a canal  and anywhere in the Keys (unless they prohibit vacation rentals. (see below)
• *The rental rates will vary from island to island due to boating depth and neighborhoods, See information below,
• *Key West downtown is seeing strong growth. In short some people are going away from life in the suburbs and opting for closeness to theatre, restaurants and the vitality of a city environment. So, don’t overlook the downtown areas.

Renting your home out as a seasonal (vacation rental)or long term.
Long-term renters are generally easier to find as there is a shortage of homes for rent. So, if you want to buy something for retirement or a vacation home and rent it out to help your payments-this is typically the easiest way. (Long term rentals are considered to be anything over 6 months, as the tenants don't pay the 11.5% Florida tax)

Generally long-term rentals should be unfurnished.

Initially your agent’s company will do a credit check before submitting a lease to you, then with your approval of the lease, they typically collect the first and last months rent plus a security deposit which is typically a months rental amount.

As to utilities-
The tenants generally take the lease to the water, electric, phone and cable people and have the utilities put in their name and of course they pay their own deposits. In most areas of Florida, garbage is included in the tax bill-so there is no separate garbage bill.
• Seasonal rentals.
Most residential areas can only rent monthly or 28 days, meaning the owner can only rent the home out 12 times per year. This means about 5 months of income-Jan-Feb-Mar and July-August. There are some April and June monthlies.
• *Ask your REALTOR if there are any Condos or areas that do allow weekly rentals as this will definitely be your best return.
• As to what is the best rental situation, that is size, which areas, views, pools, how water and boating accessibility affects rental amounts and the typical rental amounts for both long and short term, plus the fees involved, ask your agent.
• As to extra costs and what is necessary to have a Home as a Rental.
• When you rent your home out you generally need to license it through the County. This costs is typically minimal and your agent’s company should be able to handle the paperwork for you.
• The County and the Tax people want the homes licensed so they know where there may be tax dollars coming in. When your home is used as a rental, in effect you are operating the same as a hotel or motel and so they come under their safety guidelines.
• This applies to the Keys but may be the cases statewide:
• Every bedroom and the main living area must have a hardwired smoke detector and there must also be an escape light. This light comes on in case of a power outage-this also must be hardwired. (About $450.00 installed smoke detectors and escape light for a 2/2)
• There also needs to be a professional quality refillable fire extinguisher that is approved by the fire department (about $55.00). This would be the same as you'd find in a restaurant or hotel room. There needs to be a dead bolt on the door that works from the inside and is a different key than the main door. All of these issues help protect your liability in cases of fire/break in.
• When the home complies with all of the above and your agent has a signed contract from you authorizing them as a rental agent, then it can go into the rental pool.

What about Hurricane preparation?

In the event of an impending Hurricane, a handyman or someone else can be hired to put up the storm shutters, bring in the lawn and patio furniture, etc for a fee-most agents have too many homes for them to do it individually.

*This agreement should be set up in advance by the homeowner and the handyman. Your agent can find someone to do this.

What makes a good Vacation Rental
• A clean, well-maintained home on a canal or open water.
• Typically one of the bedrooms should have a set of twin beds if the renters are bringing children.
• Good linens and towels and a backup set. This is especially important for monthly renters.
• The washer, dryer and refrigerator should be newer if possible.
• A good Television hooked up to cable (about $35.00 per month) and a CD or tape stereo system.
• The kitchen must be completely outfitted. A microwave is also very important for renters.
• Patio and/or Lawn-Deck furniture. If there is an upper deck, a table and chairs plus loungers.
• On the waterside, a set of loungers and chairs.

Repeat renters

If the renters have a good experience, they will come back. We see this especially with people that book two to three months a year.

Be sure to check on the Rental laws-what is going on in your area now and what is proposed? These can vary dramatically based on the area.

When we have a bilateral or effective contract what does that mean and then what next?

A bilateral contract means everyone agrees on the terms of the contract÷The price-closing date-money down etc and they have all signed off on it.. At this point the clock starts ticking on the addendum or contingencies.



What are some typical Contract Contingencies?

These can range from a wide variety of things, such as:

The buyer who lives out of the area but when we do find the right home or business, wants to present an offer--this would be written as---sale is contingent on the personal inspection of the buyer(generally done 10 days from bilateral agreement)


I have to sell my home first.

This is written simply as that. The sellers will generally require a copy of a listing agreement. Plus it is fairly standard policy for the home you want to continue to be marketed with what we call a kick out clause. That is if a buyer comes along with an offer and can close before you can you are generally given 48 to 72 hours to come up with the down and get the home closed. Before this happens, if you live in Florida you may be able to get a bridge loan or an equity loan would be another possible way to go.

Grouped in with contingencies are as is addendum's. Homes in the Keys are sold as is with right of inspections. There are generally three types of inspections done



The Inspections When?

Generally are done within 10 days of the contract going bilateral.

What kinds


General-Electrical, plumbing, structure, windows, doors, appliances.($300 and up)
  Termites-The home is inspected for any past damage and/or existence of living termites. We do have termites down here and the standard solution is to tent the house.($200 up÷some inspectors perform both the general and the termite inspection)

Septic. This inspection will determine that the septic is in good working order and that the drainfield is not backed up. The septic is pumped and then the tank is filled with water to check that it empties properly. (Average$300)

Aerobic system. These are the newer waste treatment systems. Generally a local company will have a maintenance contract. They will come out and inspect it to see that everything is functioning properly.(Average$100 for company to check)



What if there are problems?

This becomes a negotiating point. Whether they are extensive or not, we can ask that they be repaired or the money credited back at closing (if you can do the repairs) This can also depend on the price you get the home for. If you get a particularly good deal, some sellers will not take care of anything÷as is really means as is!

In some cases we will have to get estimates. This whole process again is a matter of negotiation.



The appraisal

A-Who-The Bank orders the appraisal.

B-When-It is generally ordered after the inspections and everything seems to be in good order to proceed.

c-Where does it go to:

The bank needs it to justify the loan amount. The Insurance company also needs it in order to establish the insurance value.

Insurance÷Wind-Flood-Homeowners

Assumable-Some insurance policies down here are assumable (wind and flood) as the rates are set and don't vary. It is generally easier to continue with the same policy. The key thing here is an elevation certificate. If the insurance is not assumable, you will need an elevation certificate. This can either be gotten from the previous insurer or it is done during the new survey.

V and E zones. Most canal homes are in A zones. Open water in most cases is considered a V zone. What this means is that A zone flood insurance is about a third of the cost as V zone.

Homeowners insurance will vary in cost based on value and contents. I will find out for you the current insurance company and check to see if it is assumable, and find out about the elevation certificate.


The survey

A-Who-The Title company orders the survey

B-When-This is generally the last item that is ordered-after a loan commitment has been established.

C-How much-generally about $400

The closing company

Then closing company does the title search and gathers all the documents necessary to finalize the deal.


Closing costs. Closing costs are negotiable, but generally the buyer-

Pays for the buyers title insurance(necessary for a mortgage)

Pays a year in advance for the Insurance.

Pays all costs or bank charges.

Pays prorated taxes for the balance of the year.

*Disclaimer*The information below is based on my experience. In all cases regarding permits, or anything that could affect the value of the home--You SHOULD check with Monroe County officials directly.

Qualifying for a Loan

A-One of the first things you should do is to talk with a lender who will Pre-Qualify you based on your income, debt ratio, and money available for a down payment. This is a very easy thing to do, just a short phone call. This will accomplish two things

1- We'll know exactly the price range to shoot for.
2-We'll be in a much better position to make an offer and get it accepted if you're already pre-qualified.
*If you're not already down here, contact me for names of Lenders and loan officers or look at the Vendors page on my site for a list of names and numbers.

IMPORTANT--Why should I use a local lender?
The Banks here know the areas (various Keys and neighborhoods) and are used to all the scenarios you run into in a destination resort home market. This includes vacation homes, using homes as a rental, retired with no income, etc. Generally it is easier to get a local bank to get the deal done and with a lot less hassle.

The down payment or how much do I need?
This can range from as little as 5% down to whatever you want or can afford to do. (in some cases there are no down loans-however you will sti;; have closing costs) Remember-The less money down the harder they will look at your credit scores. For instance:

If you have good credit, a good job, but no money saved for a down, you CAN get financed, with only two payments in the bank.

I have had investors come in with as little as 5% to 10% down on homes they used as rentals.

As a general rule, 20% down is the magic number, whereby you won't have to pay mortgage insurance or PMI.


A step by step explanation of how an offer on a property is done!

We write a contract or offer that states the price you want to pay, the amount down, the terms (financing or cash) the closing date and contingencies or addendum's (see later)

At the time of writing the contract, you will put up a small deposit which goes in an escrow account. This is earnest money to show a good faith offer. Generally this starts as low as $500.00 and goes up based on the Homes price.

After the contract is written and signed, I present it to the listing agent and there is a specific date for the seller to give us an answer. We don't leave it open ended.

All counteroffers can be handled via phone or verbally.

To know

The good homes (well maintained-move in ready) generally go quick and everybody knows what the good homes are down here. That's why its so important to have your financing squared around, so if we do find a sleeper we can move on it quickly.

Basically since most homes here are second homes they generally are not as well maintained as a primary home. The homes that are generally the best condition are either owner occupied or homes that are vacation rentals. I can tell you that if there is ever anything wrong with a vacation rental-the renters call immediately to get it fixed.

Consider the offer as a negotiating point-Again, I ca thing I do that will help your decision, is to pull up a current comparison on homes that have sold in the area and are for sale.