2 bd · 1.0 ba ·
865 sqft ·
Built 1985
· SingleFamily
· Active
· 32 DOM
Cashflow @ list (25.0% down · 7.5%)
Estimated rent
$1,975/mo
Mortgage (P&I)
−$839
Tax + insurance
−$142
HOA
−$0
Vac / Maint / Mgmt
−$415
Net cashflow
$579/mo
Annual
$6,950/yr
Cap rate
10.64%
Cash-on-cash
15.51%
DSCR
1.69
1% rule
1.23%
Cash to close
$44,800
Investor read
This is a 2-bed/1.0-bath single-family listed at $160k.
At list price, monthly cash flow is $579 ($7k/yr) — positive.
The deal already cash-flows at list — no discount required.
Meets the 1% rule at list price ($2k rent vs $160k).
It's been on market 32 days — a 3% lower offer ($155k) is reasonable based on typical stale-listing flexibility.
Recommended offer: $155k (3.0% below list) — sets the bar for market timing.
Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
Location reads 81/100 on livability (#89 in FL, #1,421 nationally) — a professional / high-income tenant draw. Strengths: housing A+, crime A, health & safety A; Watch: amenities D-.
Indian River (other): math 48% / reading 52% proficiency, ranked #35 of 73 in FL (top 48%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
Zoned schools: Sebastian Elementary School (math 37% / reading 42%, grade F, #1,513 of 2,144 statewide, top 73%, 329 students, 72% FRL); Sebastian River Middle School (math 46% / reading 44%, grade D, #310 of 571 statewide, top 56%, 862 students, 65% FRL); Sebastian River High School (math 29% / reading 45%, grade F, #340 of 667 statewide, top 52%, 1,843 students, 52% FRL).
Market conditions: Rents rising fast (+6.2%/yr); 411 active listings in the ZIP; 8 comparable units currently listed for rent nearby; rentals at typical pace (median 23d on market — plan ~3-4 weeks tenant-placement turnaround); 564 units permitted in Indian River County in 2024 (281 in 5+ unit buildings).
Indian River County population projected at +18% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
Current owner paid $45k; list at $160k implies a 256% gain — meaningful room to come down on a strong offer.
At projected returns (-3.0% appreciation + 6.2% rent growth), your $45k cash investment doubles in ~7 years — after that, you're playing with house money.
Climate carrying-cost: severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 7→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
Cap rate 10.6% vs local median 4.4% in Sebastian — 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.
This rent runs 35% of the median local income ($67k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.
Questions for listing agent
It's been on market 32 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
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?
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.
What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.
How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.
CashFlowRE · CFR-ED7BH410RGR6MH
· Data 3 weeks agocashflowre.app · 2026-05-29