2987 S Atlantic Ave #805

Daytona Beach Shores, FL 32118

$279,000F

2 bd · 2.0 ba · 1,028 sqft · Built 1977 · Condo · Active · 121 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,444/mo
• Mortgage (P&I): −$1,463
• Tax + insurance: −$465
• HOA: −$810
• Vac / Maint / Mgmt: −$513
• Net cashflow: $-808/mo
• Annual: $-9,691/yr
• Cap rate: 2.82%
• Cash-on-cash: -12.41%
• DSCR: 0.45
• 1% rule: 0.88%
• Cash to close: $78,120

Investor read

• This is a 2-bed/2.0-bath condo listed at $279k. Condition is rated good.
• At list price, monthly cash flow is $-808 ($-10k/yr) — negative.
• To cash-flow at today's rent, offer at most $162k (41.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $244k (12.4% below list).
• It's been on market 121 days — a 12% lower offer ($246k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $162k (41.9% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 77/100 on livability (#201 in FL, #3,146 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, commute A+, health & safety A; Watch: cost of living C-, amenities D-.
• 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: R. J. Longstreet Elementary School (math 57% / reading 57%, grade C+, #781 of 2,144 statewide, top 38%, 359 students, 60% FRL); Silver Sands Middle School (math 50% / reading 52%, grade C, #237 of 571 statewide, top 43%, 1,165 students, 54% FRL); Atlantic High School (math 24% / reading 46%, grade F, #379 of 667 statewide, top 58%, 1,266 students, 52% FRL) — zoned schools at 55% FRL track the district average.
• Watch-outs: HOA is 33% of rent.
• Market conditions: Rents soft (-0.2%/yr); 1226 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals lingering (median 63d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 65% of comp listings sitting > 30 days — soft ceiling on asking rent; 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.
• 9 sale attempts since 5y 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.
• Climate carrying-cost: severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 6→16/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 2.8% vs local median 0.8% in Daytona Beach Shores — 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 $2,444/mo this rent would consume 48% of the median local household income ($61k/yr) — 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 121 days. Have you received any prior offers? Is the seller open to a 42% concession, seller financing, or rate buy-down credit?
• Built in 1977 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• 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?