3460 S Ocean Blvd #5100

Palm Beach, FL 33480

$645,000D-

2 bd · 2.0 ba · 1,463 sqft · Built 1973 · Condo · Active · 250 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,786/mo
• Mortgage (P&I): −$3,382
• Tax + insurance: −$812
• HOA: −$1,770
• Vac / Maint / Mgmt: −$1,215
• Net cashflow: $-1,394/mo
• Annual: $-16,726/yr
• Cap rate: 3.70%
• Cash-on-cash: -9.26%
• DSCR: 0.59
• 1% rule: 0.90%
• Cash to close: $180,600

Investor read

• This is a 2-bed/2.0-bath condo listed at $645k.
• At list price, monthly cash flow is $-1k ($-17k/yr) — negative.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $579k (10.3% below list).
• It's been on market 250 days — a 12% lower offer ($568k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $568k (12.0% below list) — sets the bar for market timing.
• In year one you build about $37k of equity ($4k loan paydown + $33k appreciation (5.1% local appreciation)).
• Location reads 68/100 on livability (#530 in FL) — a middle-class / working-renter tenant base. Strengths: schools A+, employment A+, crime A-; Watch: amenities F, commute F, cost of living F.
• Palm Beach (suburban): math 46% / reading 53% proficiency, ranked #34 of 73 in FL (top 47%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: HOA is 31% of rent.
• Market conditions: Rents rising (+3.9%/yr); 447 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals at typical pace (median 26d on market — plan ~3-4 weeks tenant-placement turnaround); high-income renter base; 3,974 units permitted in Palm Beach County in 2024 (1,012 in 5+ unit buildings).
• Palm Beach County population projected at +30% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Current owner paid $305k; list at $645k implies a 111% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$60k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major flood risk; severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 7→25/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• At $5,786/mo this rent would consume 46% of the median local household income ($151k/yr) (locally 213% 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 250 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1973 — 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.
• Schools are A-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?