722 1st St

Indian Rocks Beach, FL 33785

$1,097,500D

6 bd · 3.0 ba · 2,400 sqft · Built 1974 · MultiFamily · Pending · 40 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $8,513/mo
• Mortgage (P&I): −$5,755
• Tax + insurance: −$1,708
• HOA: −$0
• Vac / Maint / Mgmt: −$1,788
• Net cashflow: $-738/mo
• Annual: $-8,854/yr
• Cap rate: 5.95%
• Cash-on-cash: -1.22%
• DSCR: 0.95
• 1% rule: 0.78%
• Cash to close: $307,300

Investor read

• This is a 3 × 2-bed/1.0-bath units multifamily listed at $1.10M.
• At list price, monthly cash flow is $-738 ($-9k/yr) — negative. Per door: $-246/mo.
• To cash-flow at today's rent, offer at most $967k (11.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $851k (22.4% below list).
• It's been on market 40 days — a 3% lower offer ($1.06M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $851k (22.4% below list) — sets the bar for 1% rule.
• In year one you build about $20k of equity ($8k loan paydown + $12k appreciation (1.1% local appreciation)).
• Location reads 73/100 on livability (#315 in FL) — a middle-class / working-renter tenant base. Strengths: health & safety A+, commute A, crime A-; Watch: amenities F, cost of living F.
• Pinellas (suburban): math 51% / reading 51% proficiency, ranked #31 of 73 in FL (top 42%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Anona Elementary School (math 80% / reading 67%, grade A, #260 of 2,144 statewide, top 13%, 473 students, 45% FRL); Seminole Middle School (math 55% / reading 53%, grade B-, #196 of 571 statewide, top 36%, 824 students, 49% FRL); Richard O Jacobson Technical High School At Seminole (math 52% / reading 53%, grade C-, #154 of 667 statewide, top 24%, 578 students, 45% FRL) — zoned schools at 46% FRL track the district average.
• Watch-outs: flood insurance adds $427/mo.
• Market conditions: 246 active listings in the ZIP; 1 comparable units currently listed for rent nearby; solid renter incomes; 2,676 units permitted in Pinellas County in 2024 (1,422 in 5+ unit buildings).
• Pinellas County population projected at +14% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Current owner paid $550k; list at $1.10M implies a 100% gain — meaningful room to come down on a strong offer.
• By year 4, paydown + projected appreciation supports a ~$71k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• 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→27/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.0% vs local median 1.1% in Indian Rocks Beach — 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 $8,513/mo this rent would consume 101% of the median local household income ($101k/yr) (locally 130% 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 40 days. Have you received any prior offers? Is the seller open to a 22% 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?
• Built in 1974 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?