5811 Atlantic Blvd #229

Jacksonville, FL 32207

$99,000D

2 bd · 2.0 ba · 1,018 sqft · Built 1970 · Condo · Active · 197 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,357/mo
• Mortgage (P&I): −$519
• Tax + insurance: −$214
• HOA: −$401
• Vac / Maint / Mgmt: −$285
• Net cashflow: $-62/mo
• Annual: $-745/yr
• Cap rate: 5.54%
• Cash-on-cash: -2.69%
• DSCR: 0.88
• 1% rule: 1.37%
• Cash to close: $27,720

Investor read

• This is a 2-bed/2.0-bath condo listed at $99k.
• At list price, monthly cash flow is $-62 ($-745/yr) — negative.
• To cash-flow at today's rent, offer at most $88k (11.1% below list).
• Meets the 1% rule at list price ($1k rent vs $99k).
• It's been on market 197 days — a 12% lower offer ($87k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $87k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $684 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 83/100 on livability (#50 in FL, #911 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, housing A+.
• Duval (urban): math 46% / reading 45% proficiency, ranked #48 of 73 in FL (top 66%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Love Grove Elementary School (math 37% / reading 32%, grade F, #1,709 of 2,144 statewide, top 81%, 381 students, 54% FRL); Arlington Middle School (math 23% / reading 21%, grade F, #549 of 571 statewide, top 97%, 798 students, 74% FRL); Englewood High School (math 21% / reading 21%, grade F, #551 of 667 statewide, top 83%, 1,741 students, 58% FRL).
• Zoned-school proficiency averages 26% at this address vs 46% district-wide (-20 pts) — the specific schools serving this property underperform the Duval average; the district grade overstates school quality for this exact location.
• Watch-outs: HOA is 30% of rent.
• Market conditions: Rents soft (-0.2%/yr); 226 active listings in the ZIP; 31 comparable units currently listed for rent nearby; rentals leasing fast (median 13d on market — plan ~1-2 weeks tenant-placement turnaround); 6,503 units permitted in Duval County in 2024 (1,131 in 5+ unit buildings).
• Duval County population projected at +19% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 5 sale attempts since 13y ago; this cycle's ask has dropped $46k (32%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $81k; 22% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Climate carrying-cost: severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 6→16/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.5% vs local median 3.9% in Jacksonville — 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.

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 197 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1970 — 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 B-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?