409 Fountainhead Cir

Kissimmee, FL 34741

$2,250,000C+

240 bd · 228.0 ba · 10,652 sqft · Built 1988 · MultiFamily · Active · 270 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $27,134/mo
• Mortgage (P&I): −$11,799
• Tax + insurance: −$3,750
• HOA: −$26
• Vac / Maint / Mgmt: −$5,698
• Net cashflow: $5,861/mo
• Annual: $70,327/yr
• Cap rate: 9.42%
• Cash-on-cash: 11.16%
• DSCR: 1.50
• 1% rule: 1.21%
• Cash to close: $630,000

Investor read

• This is a 12 × 20-bed/19.0-bath units multifamily listed at $2.25M.
• At list price, monthly cash flow is $6k ($70k/yr) — positive. Per door: $488/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($27k rent vs $2.25M).
• It's been on market 270 days — a 12% lower offer ($1.98M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.98M (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $16k of loan paydown is wiped out by about $68k of value loss. Plan a longer hold.
• Location reads 77/100 on livability (#181 in FL, #2,841 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, housing A+, health & safety A+; Watch: crime D-, employment D-.
• Osceola (suburban): math 39% / reading 45% proficiency, ranked #60 of 73 in FL (top 82%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 60% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Central Avenue Elementary School (math 28% / reading 29%, grade F, #1,943 of 2,144 statewide, top 91%, 584 students, 57% FRL); Denn John Middle School (math 28% / reading 30%, grade F, #479 of 571 statewide, top 84%, 873 students, 57% FRL); Osceola High School (math 26% / reading 32%, grade F, #456 of 667 statewide, top 68%, 2,391 students, 69% FRL) — zoned schools at 61% FRL track the district average.
• Zoned-school proficiency averages 29% at this address vs 42% district-wide (-13 pts) — the specific schools serving this property underperform the Osceola average; the district grade overstates school quality for this exact location.
• Market conditions: Rents soft (-1.4%/yr); 378 active listings in the ZIP; 8,813 units permitted in Osceola County in 2024 (3,072 in 5+ unit buildings).
• Osceola County population projected at +73% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 3 sale attempts since 18y 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→24/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 9.4% vs local median 3.5% in Kissimmee — 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 $27,134/mo this rent would consume 621% of the median local household income ($52k/yr) (locally 5248% 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 270 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?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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.
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.