726/720 N Pennsylvania Ave

Winter Park, FL 32789

$1,185,999D-

3 bd · 2.0 ba · 1,167 sqft · Built 2015 · MultiFamily · Active · 53 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $8,030/mo
• Mortgage (P&I): −$6,220
• Tax + insurance: −$925
• HOA: −$0
• Vac / Maint / Mgmt: −$1,686
• Net cashflow: $-801/mo
• Annual: $-9,610/yr
• Cap rate: 5.48%
• Cash-on-cash: -2.89%
• DSCR: 0.87
• 1% rule: 0.68%
• Cash to close: $332,080

Investor read

• This is a 4 × 3-bed/2.0-bath units multifamily listed at $1.19M.
• At list price, monthly cash flow is $-801 ($-10k/yr) — negative. Per door: $-200/mo.
• To cash-flow at today's rent, offer at most $1.04M (11.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $803k (32.3% below list).
• It's been on market 53 days — a 3% lower offer ($1.15M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $803k (32.3% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $8k of loan paydown is wiped out by about $36k of value loss. Plan a longer hold.
• Location reads 83/100 on livability (#44 in FL, #852 nationally) — a professional / high-income tenant draw. Strengths: commute A+, employment A+, health & safety A+; Watch: cost of living F.
• Orange (suburban): math 46% / reading 51% proficiency, ranked #43 of 73 in FL (top 59%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Lakemont Elementary (math 57% / reading 60%, grade B-, #735 of 2,144 statewide, top 35%, 611 students, 43% FRL); Winter Park High (math 42% / reading 64%, grade C-, #148 of 667 statewide, top 23%, 3,369 students, 37% FRL) — zoned schools average 40% FRL vs 56% district-wide (17 pts lower); this property's tenant base skews higher-income than the district average.
• Market conditions: Rents rising (+1.2%/yr); 339 active listings in the ZIP; 22 comparable units currently listed for rent nearby; rentals at typical pace (median 18d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 8,053 units permitted in Orange County in 2024 (3,133 in 5+ unit buildings).
• Orange County population projected at +52% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 19 sale attempts since 8y 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 7→22/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.5% vs local median 1.8% in Winter Park — 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 $8,030/mo this rent would consume 90% of the median local household income ($107k/yr) (locally 1178% 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 53 days. Have you received any prior offers? Is the seller open to a 32% 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?
• 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.