Is 1039 Beach Rd #104 in Sanibel, FL a good investment?

CashFlowRE grades it C+ with a 7.2% cap rate and $-19/mo modeled cash flow at a $549,000 list price. See the full underwriting and recommended offer on the page.

What is the cap rate for 1039 Beach Rd #104?

The modeled cap rate is 7.2% — annual NOI divided by price, using CashFlowRE's rent and expense estimates.

What would this property rent for?

Estimated market rent is $6,009/month, from CashFlowRE's rent model.

C+ Composite 60.42

Why this score? — see what drove the C+ grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

Cash flow +17.4/30.0
ARV discount +15.0/15.0
Schools +6.9/10.0
1% rule +5.9/10.0
DSCR +5.4/10.0
Condition / age +4.0/5.0
Livability +3.4/5.0
Rent growth +2.5/5.0
Appreciation +0.0/10.0

$549,000

1039 Beach Rd #104 · Sanibel, FL 33957

2 bd · 2.0 ba · 1,044 sqft · Condo public records · 353 Days on market

Built 1984 Good condition $526/sqft · 33% below area Est $815k · 33% under $650/mo HOA · 11% of rent

🖨 Deal sheet (PDF) 📄 Offer letter ✓ Due diligence

Listing remarks MLS

Just reduced and priced to sell. This East End townhome is a short walk to the beach and is located on the convenient East End. Beautiful lake views. The updated kitchen is open to the living/dining area and offers an additional sitting area. Two bedrooms with remodeled bathrooms include a master retreat that occupies the entire top floor. Double sink and vanities in the bathroom and a private lanai overlooking the peaceful lake. Under building parking and bonus space. Heated community pool. Deeded beach access at end of road. The grounds are meticulous. New in 2014-2015: Kitchen Appliances 2016: AC, reworked ductwork so more air upstairs 2017: Hot Water Heater, Washer & Dryer. Make this Beach Road Villa your new Island Get-Away! (Lake touted as one of the top five best maintained lakes on Sanibel!) Best value in this price range. Show it today!

Key facts

Deeded beach access
Heated pool
$650 HOA

What this means for you Summary

Snapshot

This is a 2-bed/2.0-bath condo listed at $549k. Condition is rated good.

Deal economics

At list price, monthly cash flow is $-19 ($-226/yr) — negative.
To cash-flow at today's rent, offer at most $546k (0.6% below list).
Meets the 1% rule at list price ($6k rent vs $549k).
Recommended offer: $483k (12.0% below list) — sets the bar for market timing.
Cap rate 7.2% vs local median 2.6% in Sanibel — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

Location & tenants

Location reads 67/100 on livability (#541 in FL) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+; Watch: housing D+, amenities F, commute F.
Lee (suburban): math 47% / reading 50% proficiency, ranked #42 of 73 in FL (top 58%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
Zoned schools: The Sanibel School (math 92% / reading 92%, grade A+, #5 of 2,144 statewide, top 0%, 289 students, 12% FRL); South Fort Myers High School (math 23% / reading 30%, grade F, #489 of 667 statewide, top 74%, 1,917 students, 50% FRL) — zoned schools average 31% FRL vs 57% district-wide (26 pts lower); this property's tenant base skews higher-income than the district average.
Market conditions: 582 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals leasing fast (median 10d on market — plan ~1-2 weeks tenant-placement turnaround); high-income renter base; 15,411 units permitted in Lee County in 2024 (4,686 in 5+ unit buildings).
At $6,009/mo this rent would consume 59% of the median local household income ($123k/yr) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $16k of value loss. Plan a longer hold.
Lee County population projected at +44% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

Negotiation context

It's been on market 353 days — a 12% lower offer ($483k) is reasonable based on typical stale-listing flexibility.
3 sale attempts since 9y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
Current owner paid $435k; 26% above their basis — modest negotiation headroom, anchor on the comps not their cost.

Risks & watch-outs

Watch-outs: flood insurance adds $427/mo.
Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance); severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 7→26/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $483,120 (12.0% below list)

Questions for the listing agent

What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
It's been on market 353 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
Schools are A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.
What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.
How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

1% rule: 1.09% ✓
Cap rate: 7.18%
Cash-on-cash: 3.18%
DSCR: 1.14
GRM: 7.6

CMA / ARV

ARV (median comp): $814,630
List price: $549,000
Delta: -32.61%
Verdict: UNDERPRICED
Comps: 20 within 1.0 mi

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
845 E Gulf Dr #121	0.46mi	2/2.0	983 (-6%)	2mo	$700,000	$712	67
1610 Middle Gulf Dr Unit D5	1.46mi	2/2.0	1,050 (+1%)	0mo	$360,000	$343	64
629 Nerita St Unit A	0.67mi	2/2.0	1,079 (+3%)	1mo	$525,000	$487	63
979 E Gulf Dr Unit C303	0.44mi	2/2.0	1,184 (+13%)	0mo	$740,000	$625	57
845 E Gulf Dr #1342	0.36mi	2/2.0	983 (-6%)	21mo	$840,000	$855	56
1246 Fulgur St #306	0.84mi	2/2.0	1,100 (+5%)	4mo	$590,000	$536	52
979 E Gulf Dr #191	0.56mi	2/2.0	1,184 (+13%)	1mo	$790,000	$667	51
1610 Middle Gulf Dr Unit B3	1.46mi	2/2.0	937 (-10%)	2mo	$370,000	$395	46
671 E Gulf Dr Unit 1D3	0.60mi	2/2.0	875 (-16%)	5mo	$1,050,000	$1,200	43
610 Donax St #233	0.73mi	2/2.0	1,238 (+19%)	2mo	$760,000	$614	39
979 E Gulf Dr #162	0.56mi	2/2.0	1,184 (+13%)	18mo	$880,000	$743	36
1637 Sabal Sands Rd	1.22mi	3/2.0 (+1)	1,250 (+20%)	1mo	$875,000	$700	34

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

IRR: -16.4%
Equity multiple: 0.42×
Total profit: $-89,472
Equity at exit: $81,858

10-year hold

IRR: -7.9%
Equity multiple: 0.50×
Total profit: $-76,658
Equity at exit: $47,467

Cash invested: $153,720 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

Overall (STATE): 87 Strongly Landlord-Friendly
State Florida: 87 Strongly Landlord-Friendly · R+3
County: — inherits STATE
City: — inherits STATE

3-day pay-or-quit; preempts local rent control; landlord-friendly statutes. Court speed varies by county.

Methodology + full state rankings →

Active competition Active MLS

For sale now: 0 active · 5 under contract

Closed sales set the value; these active listings set current market conditions and a practical price ceiling.

ZIP-level market 33957

Home prices YoY: -15.7%
Active inventory: 582
Price-to-rent: 7.6×

Monthly cashflow live

Estimated rent: $6,009 medium interval (Pro) →
Mortgage (P&I): −$2,879
Tax from tax record: −$582 /mo · $6,981/yr
Insurance: −$229
Flood insurance flood zone: −$427 /mo · $5,118/yr
HOA: −$650
Lot rent: −$0
Vacancy / Maint / Mgmt: −$1,262
Net cashflow: $-19

Break-even live

Break-even rent $6,033

Max offer price $545,677

Occupancy floor 95%

Sensitivity live

Price	-10% $292	-5% $137	+0% $-19	+5% $-174	+10% $-330
Rent	-10% $-494	-5% $-256	+0% $-19	+5% $219	+10% $456
Rate	-1.0pp $258	-0.5pp $121	base $-19	+0.5pp $-161	+1.0pp $-306

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

Down payment: $137,250
Closing costs: $16,470
Club membership (one-time): —
Reserves months: —
Total cash needed: —

Loan-product check · same deal, 3 products live

Conventional

25% down · 7.5% · 30yr

Cash invested: —
Monthly P&I: —
Monthly cashflow: —
DSCR: —
Eligible?: —

Personal DTI + credit; lowest rate.

DSCR

20% down · 8.5% · 30yr

Cash invested: —
Monthly P&I: —
Monthly cashflow: —
DSCR: —
Eligible?: —

No personal income docs; deal must DSCR.

Hard money

10% down · 12.0% · 12mo

Cash invested: —
Monthly P&I: —
Monthly cashflow: —
DSCR: —
Eligible?: —

Short-term bridge; refi at stabilization.

Rent comps 3 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
849 Beach Rd Sanibel, FL	2.0	2.0	800	$2,600	$3.25	10d	1	0.27mi
827 E Gulf Dr Unit G8 Sanibel, FL	2.0	2.0	1040	$10,500	$10.10	119d	1	0.46mi
434 Lagoon Dr Sanibel, FL	2.0	2.0	1360	$6,000	$4.41	10d	1	0.95mi

Property features AI

Finance

Financial info: Pets allowed with conditions (maximum 2 pets, max 30 lbs)
HOA & community: Homeowners association (monthly fee $650)Association covers insurance, irrigation water, legal/accounting, grounds maintenance, pest control, recreation facilitiesCommunity poolNon-gated communityCommunity of 6 units

Exterior

Parking: Attached carport2 covered spacesDrivewayUnpaved parking areas
Security: Smoke detector(s)
Utilities: Public waterPublic sewerCable available
Home design: Single-storyEntry level 1Faces northResale propertyProperty attached (attached unit)
Construction: Built with vinyl siding and wood frameShingle roofPillar/post/pier raised foundation
Exterior features: Security/high-impact doorsStorageBalconyScreened porchGuest house attachedCommunity poolLakefrontSouth exposureHas view

Interior

Kitchen: DishwasherDisposalIcemakerMicrowaveRangeRefrigeratorRefrigerator with ice makerBreakfast bar
Bedrooms: Upper-level primary bedroom
Flooring: CarpetTileVinyl
Bathrooms: 2 full bathroomsDual sinksTub with shower
Heating & cooling: Central heating (electric)Central air conditioning (electric)Ceiling fan(s)
Interior features: Partially furnishedBreakfast barTray ceiling(s)Dual sinksEntrance foyerCombined living/dining roomTub with showerCable TVUpper-level primary bedroomSplit bedroom floor planCasement windowsSingle-hung windowsSliding windowsImpact glass
Laundry & utility: WasherDryer

HOA detail $650/mo · $7,800/yr condo

Likely covers: waterlandscapingpool
Assessments: None detected in remarks — confirm with the listing agent.

Listing history 50 events

2026-09-24

days on market $549,000 Active 353 DOM
2026-09-23

days on market $549,000 Active 352 DOM
2026-09-22

days on market $549,000 Active 351 DOM
2026-09-21

days on market $549,000 Active 350 DOM
2026-09-17

days on market $549,000 Active 346 DOM
2026-09-13

days on market $549,000 Active 342 DOM
2026-09-13

days on market $549,000 Active 341 DOM
2026-09-11

days on market $549,000 Active 340 DOM
2026-09-05

days on market $549,000 Active 334 DOM
2026-09-04

days on market $549,000 Active 333 DOM
2026-09-03

days on market $549,000 Active 332 DOM
2026-08-31

days on market $549,000 Active 329 DOM
2026-08-28

days on market $549,000 Active 326 DOM
2026-08-26

days on market $549,000 Active 324 DOM
2026-08-24

days on market $549,000 Active 322 DOM
2026-08-23

days on market $549,000 Active 321 DOM
2026-08-21

days on market $549,000 Active 319 DOM
2026-08-20

days on market $549,000 Active 318 DOM
2026-08-19

days on market $549,000 Active 317 DOM
2026-08-18

days on market $549,000 Active 316 DOM
2026-08-16

days on market $549,000 Active 314 DOM
2026-08-15

days on market $549,000 Active 313 DOM
2026-08-13

days on market $549,000 Active 311 DOM
2026-08-10

days on market $549,000 Active 308 DOM
2026-08-09

days on market $549,000 Active 307 DOM
2026-08-06

days on market $549,000 Active 304 DOM
2026-08-05

days on market $549,000 Active 303 DOM
2026-08-04

days on market $549,000 Active 302 DOM
2026-07-26

days on market $549,000 Active 293 DOM
2026-07-24

days on market $549,000 Active 291 DOM
2026-07-23

days on market $549,000 Active 290 DOM
2026-07-22

days on market $549,000 Active 289 DOM
2026-07-21

days on market $549,000 Active 288 DOM
2026-07-18

days on market $549,000 Active 285 DOM
2026-07-18

days on market $549,000 Active 284 DOM
2026-07-16

days on market $549,000 Active 283 DOM
2026-07-15

days on market $549,000 Active 282 DOM
2026-07-13

days on market $549,000 Active 280 DOM
2026-07-13

days on market $549,000 Active 279 DOM
2026-07-12

days on market $549,000 Active 278 DOM
2026-07-10

days on market $549,000 Active 277 DOM
2026-07-10

days on market $549,000 Active 276 DOM
2026-07-07

days on market $549,000 Active 274 DOM
2026-07-06

days on market $549,000 Active 273 DOM
2026-07-05

days on market $549,000 Active 272 DOM
2026-07-02

days on market $549,000 Active 269 DOM
2026-07-01

days on market $549,000 Active 268 DOM
2026-06-30

days on market $549,000 Active 267 DOM
2026-06-29

days on market $549,000 Active 266 DOM
2026-06-28

days on market $549,000 Active 265 DOM

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast FL · Resets to sale price

Current annual tax: $6,981 · $582/mo
Projected year-2 tax: $6,981 · $582/mo
Expected delta: $0/yr ($0/mo · 0.0%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

🌊 Flood 10/10 Extreme FEMA zone AE · 99% chance over 30 yrs
🔥 Wildfire 1/10 Low
🌡 Heat 10/10 Extreme 7 d/yr ≥113°F today · 26 d/yr by 30 yrs out
💨 Wind 10/10 Extreme 99% chance of damaging wind over 30 yrs
🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 1 by 30 yrs out

Nearby sold comps map

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Walkable amenities ~0.75 mi

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Taxation est. · year 1

Rental income: $72,111
− Mortgage interest: −$30,753
− Property taxes: −$6,981
− Insurance: −$7,864
− Repairs & maintenance: −$5,769
− Management: −$5,769
− HOA: −$7,800
− Depreciation: −$15,971
Taxable loss: −$8,795

Your marginal tax rate % combined federal + state — saved on this device

Est. tax savings @ 24.0%: +$2,111
After-tax cash flow: $1,885/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Condition & rehab AI · 9 photos

Good 80/100 Cosmetic rehab Est. rehab $5,220–$15,660 screening

This East End townhome is in good condition with recent updates, offering a move-in-ready experience. It's located on the beach with deeded access and boasts a peaceful lake view.

Components & finishes AI

Roof asphalt shingle · good Flooring tile

Deferred maintenance Est. $500–$2,000 screening

Minor Roof (roof) — No visible signs of damage or wear on the roof.

Value-add opportunities

Both Painting exterior siding — Fresh paint enhances curb appeal and value. ↑
Both Landscaping improvements — Enhances curb appeal and adds value. ↑
Both Updating flooring — Fresh flooring improves aesthetics and value. ↑
Both Updating kitchen appliances — Modern appliances enhance functionality and value. ↑
Both Updating bathrooms — Fresh bathrooms improve functionality and value. ↑

ⓘ Rehab cost is a screening estimate — Cosmetic scope × the home's square footage at US $/sqft rules of thumb (the same model as the Flip Finder). Get contractor quotes + a written scope before underwriting.

C Composite school gradezoned avg 68/100

Zoned Schools

Elementary The Sanibel School A+ FL #5/2,144 Nat'l #94/41,679 High Cypress Lake High School D- FL #228/667 Nat'l #6,809/17,239

Schools (NCES district)

District: Lee
NCES district ID: 1201080
Math proficiency: 47% ▼ -11.00%
Reading proficiency: 50% ▼ -4.00%
Median HH income: $49,518
Composite: 41.49/100
National rank: #3458
State rank: #42 of 73 in FL

C Composite livability gradescore 67/100

Livability — Sanibel

Score: 67/100
State rank: #541
US rank: #10166

Category grades

Amenities F Commute F Cost of living F Crime A+ Employment A+ Housing D+ Health & safety D- User ratings A+

Schools grade is shown separately in the Schools card above.

Census & demographics

Census place: Sanibel, FL
County: Lee · 871,946 people
City population: 6,402
Metro: Cape Coral-Fort Myers, FL
Population (ZIP): 6,402
Household income: $122,730
Rent vs Own: 8.4% rent · 91.6% own
Severe rent burden: 3% of renters

Population outlook (Lee County) Hauer SSP2

Today (2025): 871,946 people
By 2030: 955,468 · +9.6%
By 2040: 1,113,587 · +27.7%
By 2050: 1,256,891 · +44.1%
By 2075: 1,560,270 · +78.9%
By 2100: 1,726,848 · +98.0%

Race, ethnicity, and origin ACS 2023

Neighborhood character: Predominantly White (95%)
Race & ethnicity: White 95% Two or more races 2% Asian 1%
Common ancestry: Italian 4% Romanian 4% Slovak 2%
Foreign-born: 5% · Canada, China
Languages at home: 96% English-only · German/W. Germanic 1% Spanish 1% French/Haitian/Cajun 1%

Political lean MEDSL · Lee

2024 margin: Strong R (+28.4) · D 35.5% · R 63.9%
2008→2024 swing: -18.0pp toward R · 2008: -10.4pp · 2024: -28.4pp
All cycles: 2024: R+28.4 2020: R+19.2 2016: R+20.4 2012: R+16.6 2008: R+10.4

Not yet ingested

Civics: —

Market trends

HPI YoY: ▼ -93.08%
Current HPI: 501.0
Rent YoY: —
Metro: —
State GDP YoY: ▲ 3.28%
F500 in state: 36

Industry mix (Fortune 500 HQ in FL)

Industry	F500 HQs	Revenue
Industrial Technology	2	$29B
#159 Carrier Global Palm Beach Gardens $22.2B #376 Roper Technologies Sarasota $6.8B
Insurance	2	$17B
#348 Fidelity National Financial Jacksonville $12.1B #494 Brown & Brown Daytona Beach $4.6B
Retail	1	$60B
#71 Publix Super Markets Lakeland $60.2B
Technology Distribution	1	$58B
#73 TD Synnex Clearwater $58.5B
Homebuilding	1	$35B
#185 Lennar Miami $35.4B
Technology Manufacturing	1	$35B
#122 Jabil St. Petersburg $34.7B

Price history

+510.7% since first listed

17 events — show timeline

2025-10-06 Listed $549,000 FORTMLS
2024-08-12 Listing Removed — FORTMLS
2024-06-10 Price Changed $560,000 FORTMLS
2024-04-02 Price Changed $580,000 FORTMLS
2024-02-01 Price Changed $595,000 FORTMLS
2024-01-15 Listed $610,000 FORTMLS
2018-05-01 Sold (Public Records) $435,000 Public Records
2018-04-30 Sold (MLS) $435,000 FORTMLS
2018-04-11 Pending — FORTMLS
2018-02-26 Pending — FORTMLS
2018-02-13 Price Changed $455,000 FORTMLS
2017-10-10 Listed $473,000 FORTMLS
2014-04-30 Sold (Public Records) $313,000 Public Records
2014-04-30 Price Changed $335,000 FORTMLS
2014-04-30 Sold (MLS) $313,000 FORTMLS
1989-11-09 Sold (Public Records) $142,000 Public Records
1987-12-01 Sold (Public Records) $89,900 Public Records

Property tax history

+12.0%/yr

Latest (2025): $6,981 · +12.2% YoY. Source: county tax records.

Cash-flow waterfall

monthly

Sold comps — $/sqft

last 12 mo · ≤1 mi

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