COVINGTON Plan

Daytona Beach, FL 32124

$420,990D-

5 bd · 3.0 ba · 2,490 sqft · Built — · SingleFamily · Active · 523 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,194/mo
• Mortgage (P&I): −$2,318
• Tax + insurance: −$737
• HOA: −$0
• Vac / Maint / Mgmt: −$671
• Net cashflow: $-531/mo
• Annual: $-6,372/yr
• Cap rate: 4.85%
• Cash-on-cash: -5.15%
• DSCR: 0.77
• 1% rule: 0.72%
• Cash to close: $123,759

Investor read

• This is a 5-bed/3.0-bath single-family listed at $421k. Condition is rated good.
• At list price, monthly cash flow is $-531 ($-6k/yr) — negative.
• To cash-flow at today's rent, offer at most $365k (13.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $319k (24.1% below list).
• It's been on market 523 days — a 12% lower offer ($370k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $319k (24.1% below list) — sets the bar for 1% rule.
• Local home prices are declining (-2.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $9k of value loss. Plan a longer hold.
• Location reads 83/100 on livability (#46 in FL, #867 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, cost of living A+; Watch: employment D-.
• Volusia (suburban): math 44% / reading 49% proficiency, ranked #47 of 73 in FL (top 64%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Champion Elementary School (math 39% / reading 44%, grade F, #1,437 of 2,144 statewide, top 68%, 584 students, 70% FRL); David C. Hinson Sr. Middle School (math 52% / reading 49%, grade C, #246 of 571 statewide, top 44%, 950 students, 52% FRL); Mainland High School (math 30% / reading 37%, grade F, #400 of 667 statewide, top 61%, 1,855 students, 64% FRL).
• Market conditions: Rents rising fast (+5.5%/yr); 462 active listings in the ZIP; 17 comparable units currently listed for rent nearby; rentals leasing fast (median 7d on market — plan ~1-2 weeks tenant-placement turnaround); solid renter incomes; 3,402 units permitted in Volusia County in 2024 (681 in 5+ unit buildings).
• Volusia County population projected at +19% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 4.9% vs local median 3.7% in Daytona 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.
• This rent runs 41% of the median local income ($93k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 523 days. Have you received any prior offers? Is the seller open to a 24% concession, seller financing, or rate buy-down credit?
• 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 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?
• 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?
• 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.