701 Spanish Main Dr #28

Cudjoe Key, FL 33042

$339,000D

1 bd · 1.0 ba · 388 sqft · Built 1983 · Manufactured · Active · 81 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,743/mo
• Mortgage (P&I): −$1,778
• Tax + insurance: −$819
• HOA: −$513
• Vac / Maint / Mgmt: −$576
• Net cashflow: $-943/mo
• Annual: $-11,313/yr
• Cap rate: 4.47%
• Cash-on-cash: -6.53%
• DSCR: 0.71
• 1% rule: 0.81%
• Cash to close: $94,920

Investor read

• This is a 1-bed/1.0-bath manufactured listed at $339k.
• At list price, monthly cash flow is $-943 ($-11k/yr) — negative.
• To cash-flow at today's rent, offer at most $172k (49.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $274k (19.1% below list).
• It's been on market 81 days — a 6% lower offer ($319k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $172k (49.1% below list) — sets the bar for cash-flow.
• In year one you build about $36k of equity ($2k loan paydown + $34k appreciation (10.0% local appreciation)).
• Location reads 59/100 on livability (#811 in FL) — a working-class tenant base; expect higher turnover. Strengths: crime A+, employment A+, housing B; Watch: schools D, health & safety D, amenities F.
• Monroe (town): math 50% / reading 55% proficiency, ranked #23 of 73 in FL (top 32%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Watch-outs: flood insurance adds $427/mo.
• Market conditions: 239 active listings in the ZIP; solid renter incomes; 332 units permitted in Monroe County in 2024 (42 in 5+ unit buildings).
• Monroe County population projected at +28% 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 $210k (38%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• By year 2, paydown + projected appreciation supports a ~$58k 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 — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.5% vs local median 1.5% in Cudjoe Key — 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 32% of the median local income ($103k/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 81 days. Have you received any prior offers? Is the seller open to a 49% concession, seller financing, or rate buy-down credit?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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?