412 NE 4th Ave

Hallandale Beach, FL 33009

$1,275,000F

16 bd · 16.0 ba · 2,151 sqft · Built 1989 · MultiFamily · Active · 135 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $8,045/mo
• Mortgage (P&I): −$6,686
• Tax + insurance: −$2,191
• HOA: −$0
• Vac / Maint / Mgmt: −$1,689
• Net cashflow: $-2,522/mo
• Annual: $-30,266/yr
• Cap rate: 3.98%
• Cash-on-cash: -8.25%
• DSCR: 0.63
• 1% rule: 0.63%
• Cash to close: $357,000

Investor read

• This is a 4 × 1-bed/1.0-bath units multifamily listed at $1.27M.
• At list price, monthly cash flow is $-3k ($-30k/yr) — negative. Per door: $-631/mo.
• To cash-flow at today's rent, offer at most $910k (28.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $804k (36.9% below list).
• It's been on market 135 days — a 12% lower offer ($1.12M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $804k (36.9% 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 $38k of value loss. Plan a longer hold.
• Location reads 81/100 on livability (#86 in FL, #1,400 nationally) — a professional / high-income tenant draw. Strengths: commute A+, health & safety A+, crime B+; Watch: schools C-, employment D-.
• Broward (suburban): math 42% / reading 53% proficiency, ranked #46 of 73 in FL (top 63%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: Rents flat; 1373 active listings in the ZIP; 2,111 units permitted in Broward County in 2024 (1,265 in 5+ unit buildings).
• Broward County population projected at +34% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts since 2y ago; this cycle's ask has dropped $225k (15%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $875k; 46% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Climate carrying-cost: major flood risk; 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 4.0% vs local median 5.2% in Hallandale Beach — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.
• At $8,045/mo this rent would consume 185% of the median local household income ($52k/yr) (locally 3293% 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 135 days. Have you received any prior offers? Is the seller open to a 37% 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'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.
• 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?