1386 NE 110th Ter

Miami Shores, FL 33161

$1,299,000F

3 bd · 2.0 ba · 1,844 sqft · Built 1995 · Land · Active · 235 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,641/mo
• Mortgage (P&I): −$6,812
• Tax + insurance: −$1,270
• HOA: −$0
• Vac / Maint / Mgmt: −$975
• Net cashflow: $-4,416/mo
• Annual: $-52,988/yr
• Cap rate: 2.61%
• Cash-on-cash: -13.16%
• DSCR: 0.41
• 1% rule: 0.36%
• Cash to close: $363,720

Investor read

• This is a 3-bed/2.0-bath land listed at $1.30M.
• At list price, monthly cash flow is $-4k ($-53k/yr) — negative.
• To cash-flow at today's rent, offer at most $519k (60.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $464k (64.3% below list).
• It's been on market 235 days — a 12% lower offer ($1.14M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $464k (64.3% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $9k of loan paydown is wiped out by about $39k of value loss. Plan a longer hold.
• Location reads 80/100 on livability (#130 in FL, #1,936 nationally) — a professional / high-income tenant draw. Strengths: schools A+, commute A+, employment A+; Watch: crime D, amenities F, cost of living F.
• Miami-Dade (suburban): math 45% / reading 54% proficiency, ranked #40 of 73 in FL (top 55%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 64% free/reduced lunch — lower-income household profile, screen leases tightly.
• Watch-outs: flood insurance adds $427/mo.
• Market conditions: Rents soft (-0.7%/yr); 338 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 10,051 units permitted in Miami-Dade County in 2024 (7,758 in 5+ unit buildings).
• Miami-Dade County population projected at +28% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 5 sale attempts since 12y ago; this cycle's ask is 158% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $55k; list at $1.30M implies a 2262% gain — meaningful room to come down on a strong offer.
• 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→28/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• At $4,641/mo this rent would consume 95% of the median local household income ($58k/yr) (locally 3226% 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 235 days. Have you received any prior offers? Is the seller open to a 64% concession, seller financing, or rate buy-down credit?
• 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.
• 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?
• 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?
• 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?