53 N Sewalls Point Rd

Sewall's Point, FL 34996

$939,900D

5 bd · 4.0 ba · 2,429 sqft · Built 1976 · SingleFamily · Active · 60 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,027/mo
• Mortgage (P&I): −$4,929
• Tax + insurance: −$1,183
• HOA: −$0
• Vac / Maint / Mgmt: −$846
• Net cashflow: $-2,930/mo
• Annual: $-35,164/yr
• Cap rate: 2.64%
• Cash-on-cash: -13.06%
• DSCR: 0.42
• 1% rule: 0.43%
• Cash to close: $263,172

Investor read

• This is a 5-bed/4.0-bath single-family listed at $940k.
• At list price, monthly cash flow is $-3k ($-35k/yr) — negative.
• To cash-flow at today's rent, offer at most $422k (55.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $403k (57.2% below list).
• It's been on market 60 days — a 3% lower offer ($912k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $403k (57.2% below list) — sets the bar for 1% rule.
• In year one you build about $100k of equity ($6k loan paydown + $94k appreciation (10.0% local appreciation)).
• Location reads: area grade D — affects rentability + tenant quality, not the cash-flow math above.
• Martin (suburban): math 52% / reading 53% proficiency, ranked #24 of 73 in FL (top 33%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: 252 active listings in the ZIP; 1 comparable units currently listed for rent nearby; solid renter incomes; 737 units permitted in Martin County in 2024 (167 in 5+ unit buildings).
• Martin County population projected at +19% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 4 sale attempts since 10y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $330k; list at $940k implies a 185% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$162k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe flood risk; severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 7→24/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 2.6% vs local median 0.7% in Sewall's Point — 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 $4,027/mo this rent would consume 58% of the median local household income ($84k/yr) (locally 247% 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 60 days. Have you received any prior offers? Is the seller open to a 57% concession, seller financing, or rate buy-down credit?
• Built in 1976 — 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.
• 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.