480 5th St S #202

Naples, FL 34102

$625,000D

1 bd · 1.0 ba · 536 sqft · Built 1965 · Condo · Active · 33 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,822/mo
• Mortgage (P&I): −$3,278
• Tax + insurance: −$664
• HOA: −$833
• Vac / Maint / Mgmt: −$1,013
• Net cashflow: $-966/mo
• Annual: $-11,589/yr
• Cap rate: 4.57%
• Cash-on-cash: -6.17%
• DSCR: 0.73
• 1% rule: 0.77%
• Cash to close: $175,000

Investor read

• This is a 1-bed/1.0-bath condo listed at $625k.
• At list price, monthly cash flow is $-966 ($-12k/yr) — negative.
• To cash-flow at today's rent, offer at most $454k (27.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $482k (22.8% below list).
• It's been on market 33 days — a 3% lower offer ($606k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $454k (27.3% below list) — sets the bar for cash-flow.
• In year one you build about $30k of equity ($4k loan paydown + $26k appreciation (4.1% local appreciation)).
• Location reads 80/100 on livability (#126 in FL, #1,903 nationally) — a professional / high-income tenant draw. Strengths: crime A+, amenities A+, employment A+; Watch: commute D+, cost of living F.
• Collier (suburban): math 60% / reading 56% proficiency, ranked #16 of 73 in FL (top 22%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: Rents rising fast (+8.8%/yr); 614 active listings in the ZIP; 22 comparable units currently listed for rent nearby; rentals at typical pace (median 24d on market — plan ~3-4 weeks tenant-placement turnaround); high-income renter base; 3,520 units permitted in Collier County in 2024 (959 in 5+ unit buildings).
• Collier County population projected at +30% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 6 sale attempts since 2y ago; this cycle's ask is 10317% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $300k; list at $625k implies a 108% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$48k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe flood risk; severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 7→27/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• This rent runs 44% of the median local income ($131k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 33 days. Have you received any prior offers? Is the seller open to a 27% concession, seller financing, or rate buy-down credit?
• Built in 1965 — 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?
• 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?