5055 Collins Ave Unit 4C

Miami Beach, FL 33140

$714,400F

2 bd · 3.0 ba · 1,660 sqft · Built 1961 · Condo · Active · 63 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,766/mo
• Mortgage (P&I): −$3,746
• Tax + insurance: −$1,019
• HOA: −$1,876
• Vac / Maint / Mgmt: −$1,001
• Net cashflow: $-2,876/mo
• Annual: $-34,513/yr
• Cap rate: 2.18%
• Cash-on-cash: -14.70%
• DSCR: 0.35
• 1% rule: 0.67%
• Cash to close: $200,032

Investor read

• This is a 2-bed/3.0-bath condo listed at $714k.
• At list price, monthly cash flow is $-3k ($-35k/yr) — negative.
• To cash-flow at today's rent, offer at most $538k (24.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $477k (33.3% below list).
• It's been on market 63 days — a 6% lower offer ($672k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $477k (33.3% below list) — sets the bar for 1% rule.
• In year one you build about $12k of equity ($5k loan paydown + $7k appreciation (1.0% local appreciation)).
• Location reads 80/100 on livability (#108 in FL, #1,672 nationally) — a professional / high-income tenant draw. Strengths: crime A+, commute A+, health & safety A+; Watch: housing C-, amenities D-, cost of living F.
• Miami-Dade (suburban): math 45% / reading 54% proficiency, ranked #40 of 73 in FL (top 55%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 64% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: North Beach Elementary School (math 75% / reading 79%, grade A, #170 of 2,144 statewide, top 9%, 937 students, 24% FRL); Miami Beach Nautilus Middle School (math 46% / reading 58%, grade C+, #217 of 571 statewide, top 40%, 918 students, 44% FRL); Miami Beach Senior High School (math 21% / reading 48%, grade F, #386 of 667 statewide, top 59%, 2,175 students, 40% FRL) — zoned schools average 36% FRL vs 64% district-wide (28 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: flood insurance adds $427/mo; HOA is 39% of rent.
• Market conditions: Rents rising (+3.5%/yr); 674 active listings in the ZIP; 5 comparable units currently listed for rent nearby; rentals leasing fast (median 13d on market — plan ~1-2 weeks tenant-placement turnaround); solid renter incomes; 10,051 units permitted in Miami-Dade County in 2024 (7,758 in 5+ unit buildings).
• Miami-Dade County population projected at +28% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 7 sale attempts since 8y ago; this cycle's ask is 12281% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $159k; list at $714k implies a 349% gain — meaningful room to come down on a strong offer.
• By year 4, paydown + projected appreciation supports a ~$43k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• 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 6→22/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 2.2% vs local median 1.5% in Miami Beach — 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.

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 63 days. Have you received any prior offers? Is the seller open to a 33% concession, seller financing, or rate buy-down credit?
• Built in 1961 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.