329 Groover Creek Xing

Ormond Beach, FL 32174

$364,000D

4 bd · 2.5 ba · 2,745 sqft · Built 1982 · SingleFamily · Pending · 159 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,896/mo
• Mortgage (P&I): −$1,909
• Tax + insurance: −$581
• HOA: −$162
• Vac / Maint / Mgmt: −$608
• Net cashflow: $-364/mo
• Annual: $-4,372/yr
• Cap rate: 5.09%
• Cash-on-cash: -4.29%
• DSCR: 0.81
• 1% rule: 0.80%
• Cash to close: $101,920

Investor read

• This is a 4-bed/2.5-bath single-family listed at $364k.
• At list price, monthly cash flow is $-364 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $300k (17.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $290k (20.4% below list).
• It's been on market 159 days — a 12% lower offer ($320k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $290k (20.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $11k of value loss. Plan a longer hold.
• Location reads 83/100 on livability (#55 in FL, #965 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, housing A+, health & safety A+; Watch: commute F.
• Volusia (suburban): math 44% / reading 49% proficiency, ranked #47 of 73 in FL (top 64%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Pathways Elementary School (math 60% / reading 64%, grade B, #608 of 2,144 statewide, top 29%, 724 students, 42% FRL); David C. Hinson Sr. Middle School (math 52% / reading 49%, grade C, #246 of 571 statewide, top 44%, 950 students, 52% FRL); Mainland High School (math 30% / reading 37%, grade F, #400 of 667 statewide, top 61%, 1,855 students, 64% FRL) — zoned schools at 53% FRL track the district average.
• Market conditions: Rents rising (+1.6%/yr); 989 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 3,402 units permitted in Volusia County in 2024 (681 in 5+ unit buildings).
• Volusia County population projected at +19% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts since 2y ago; this cycle's ask has dropped $51k (12%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Climate carrying-cost: severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.1% vs local median 3.8% in Ormond 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.
• At $2,896/mo this rent would consume 49% of the median local household income ($71k/yr) (locally 1158% 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 159 days. Have you received any prior offers? Is the seller open to a 20% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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 B-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?
• 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?
• 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.