3615 Higel Ave

Sarasota, FL 34242

$650,000B-

3 bd · 2.0 ba · 1,550 sqft · Built 1951 · MultiFamily · Active · 165 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $8,425/mo
• Mortgage (P&I): −$3,409
• Tax + insurance: −$2,329
• HOA: −$0
• Vac / Maint / Mgmt: −$1,769
• Net cashflow: $918/mo
• Annual: $11,011/yr
• Cap rate: 8.77%
• Cash-on-cash: 8.86%
• DSCR: 1.39
• 1% rule: 1.30%
• Cash to close: $182,000

Investor read

• This is a 2 × 2-bed/2.0-bath units multifamily listed at $650k.
• At list price, monthly cash flow is $918 ($11k/yr) — positive. Per door: $459/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($8k rent vs $650k).
• It's been on market 165 days — a 12% lower offer ($572k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $572k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-0.7%/yr); year-one equity from $4k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 80/100 on livability (#121 in FL, #1,854 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, health & safety A+, commute A; Watch: crime F.
• Sarasota (urban): math 63% / reading 63% proficiency, ranked #7 of 73 in FL (top 10%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Watch-outs: property tax is 3.0% of price; flood insurance adds $427/mo; built in 1951 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 523 active listings in the ZIP; high-income renter base; 7,466 units permitted in Sarasota County in 2024 (2,138 in 5+ unit buildings).
• Sarasota County population projected at +20% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 22 sale attempts since 21y ago; this cycle's ask has dropped $340k (34%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (-0.7% appreciation + 3.0% rent growth), your $182k cash investment doubles in ~10 years — after that, you're playing with house money.
• 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 7→29/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• At $8,425/mo this rent would consume 87% of the median local household income ($116k/yr) (locally 147% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 165 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• 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 1951 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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.