805 S H St

Lake Worth Beach, FL 33460

$3,800,000F

1024 bd · 512.0 ba · 13,068 sqft · Built 1970 · MultiFamily · Pending · 72 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $10,288/mo
• Mortgage (P&I): −$19,928
• Tax + insurance: −$6,333
• HOA: −$0
• Vac / Maint / Mgmt: −$2,160
• Net cashflow: $-18,133/mo
• Annual: $-217,601/yr
• Cap rate: 0.57%
• Cash-on-cash: -20.45%
• DSCR: 0.09
• 1% rule: 0.27%
• Cash to close: $1,064,000

Investor read

• This is a 4 × 2-bed/1.0-bath units multifamily listed at $3.80M.
• At list price, monthly cash flow is $-18k ($-218k/yr) — negative. Per door: $-5k/mo.
• To cash-flow at today's rent, offer at most $1.18M (69.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.03M (72.9% below list).
• It's been on market 72 days — a 6% lower offer ($3.57M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.03M (72.9% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $26k of loan paydown is wiped out by about $114k of value loss. Plan a longer hold.
• Location reads: area grade F — affects rentability + tenant quality, not the cash-flow math above.
• Palm Beach (suburban): math 46% / reading 53% proficiency, ranked #34 of 73 in FL (top 47%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: Rents rising (+3.5%/yr); 249 active listings in the ZIP; 3,974 units permitted in Palm Beach County in 2024 (1,012 in 5+ unit buildings).
• Palm Beach County population projected at +30% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Climate carrying-cost: 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.
• At $10,288/mo this rent would consume 199% of the median local household income ($62k/yr) (locally 2429% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for 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 72 days. Have you received any prior offers? Is the seller open to a 73% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1970 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?