596 W Shore Dr

Cudjoe Key, FL 33042

$998,000D+

3 bd · 3.0 ba · 2,572 sqft · Built 1963 · MultiFamily · Contingent (Show) · 23 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $7,483/mo
• Mortgage (P&I): −$5,234
• Tax + insurance: −$1,526
• HOA: −$0
• Vac / Maint / Mgmt: −$1,571
• Net cashflow: $-848/mo
• Annual: $-10,174/yr
• Cap rate: 5.79%
• Cash-on-cash: -1.81%
• DSCR: 0.92
• 1% rule: 0.75%
• Cash to close: $279,440

Investor read

• This is a 2 × 2-bed/1.5-bath units multifamily listed at $998k.
• At list price, monthly cash flow is $-848 ($-10k/yr) — negative. Per door: $-424/mo.
• To cash-flow at today's rent, offer at most $848k (15.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $748k (25.0% below list).
• It's been on market 23 days — a 2% lower offer ($983k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $748k (25.0% below list) — sets the bar for 1% rule.
• In year one you build about $107k of equity ($7k loan paydown + $100k appreciation (10.0% local appreciation)).
• Location reads 59/100 on livability (#811 in FL) — a working-class tenant base; expect higher turnover. Strengths: crime A+, employment A+, housing B; Watch: schools D, health & safety D, amenities F.
• Monroe (town): math 50% / reading 55% proficiency, ranked #23 of 73 in FL (top 32%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Watch-outs: flood insurance adds $427/mo.
• Market conditions: 244 active listings in the ZIP; solid renter incomes; 332 units permitted in Monroe County in 2024 (42 in 5+ unit buildings).
• Monroe County population projected at +28% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Current owner paid $209k; list at $998k implies a 378% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$172k 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 — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.8% vs local median 1.5% in Cudjoe Key — 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 $7,483/mo this rent would consume 87% of the median local household income ($103k/yr) (locally 146% 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?
• 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 1963 — 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?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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?