1220 Morningside Pl

Sanibel, FL 33957

$2,999,000F

2 bd · 2.0 ba · 988 sqft · Built 1958 · MultiFamily · Active · 228 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $6,125/mo
• Mortgage (P&I): −$15,727
• Tax + insurance: −$3,286
• HOA: −$0
• Vac / Maint / Mgmt: −$1,286
• Net cashflow: $-14,174/mo
• Annual: $-170,090/yr
• Cap rate: 0.79%
• Cash-on-cash: -19.65%
• DSCR: 0.13
• 1% rule: 0.20%
• Cash to close: $839,720

Investor read

• This is a 2 × 3-bed/2.5-bath units multifamily listed at $3.00M.
• At list price, monthly cash flow is $-14k ($-170k/yr) — negative. Per door: $-7k/mo.
• To cash-flow at today's rent, offer at most $495k (83.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $612k (79.6% below list).
• It's been on market 228 days — a 12% lower offer ($2.64M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $495k (83.5% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $21k of loan paydown is wiped out by about $90k of value loss. Plan a longer hold.
• Location reads 67/100 on livability (#541 in FL) — a middle-class / working-renter tenant base. Strengths: schools A+, crime A+, employment A+; Watch: housing D+, amenities F, commute F.
• Lee (suburban): math 47% / reading 50% proficiency, ranked #42 of 73 in FL (top 58%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: flood insurance adds $427/mo; built in 1958 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 526 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 15,411 units permitted in Lee County in 2024 (4,686 in 5+ unit buildings).
• Lee County population projected at +44% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 3 sale attempts since 11y 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 $1.80M; list at $3.00M implies a 67% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance); severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 7→27/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 0.8% vs local median 3.8% in Sanibel — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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 228 days. Have you received any prior offers? Is the seller open to a 83% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1958 — 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?
• 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.