4010 S Ocean Dr Unit R2104

Hollywood, FL 33019

$705,000F

3 bd · 2.0 ba · 1,129 sqft · Built 2019 · Condo · Active · 171 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $6,316/mo
• Mortgage (P&I): −$3,697
• Tax + insurance: −$1,605
• HOA: −$1,954
• Vac / Maint / Mgmt: −$1,326
• Net cashflow: $-2,267/mo
• Annual: $-27,205/yr
• Cap rate: 2.43%
• Cash-on-cash: -13.78%
• DSCR: 0.39
• 1% rule: 0.90%
• Cash to close: $197,400

Investor read

• This is a 3-bed/2.0-bath condo listed at $705k. Condition is rated excellent.
• At list price, monthly cash flow is $-2k ($-27k/yr) — negative.
• To cash-flow at today's rent, offer at most $315k (55.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $632k (10.4% below list).
• It's been on market 171 days — a 12% lower offer ($620k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $315k (55.4% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $21k of value loss. Plan a longer hold.
• Location reads 76/100 on livability (#232 in FL, #3,548 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, housing A+, crime B+; Watch: amenities D.
• Broward (suburban): math 42% / reading 53% proficiency, ranked #46 of 73 in FL (top 63%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Hollywood Central Elementary School (math 22% / reading 32%, grade F, #1,969 of 2,144 statewide, top 94%, 351 students, 68% FRL); Olsen Middle School (math 18% / reading 24%, grade F, #555 of 571 statewide, top 97%, 633 students, 73% FRL); Hallandale High School (math 10% / reading 24%, grade F, #597 of 667 statewide, top 90%, 1,104 students, 70% FRL) — zoned schools average 70% FRL vs 51% district-wide (19 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Zoned-school proficiency averages 22% at this address vs 48% district-wide (-26 pts) — the specific schools serving this property underperform the Broward average; the district grade overstates school quality for this exact location.
• Watch-outs: HOA is 31% of rent.
• Market conditions: Rents rising (+2.9%/yr); 1173 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals at typical pace (median 27d on market — plan ~3-4 weeks tenant-placement turnaround); 48% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 2,111 units permitted in Broward County in 2024 (1,265 in 5+ unit buildings).
• Broward County population projected at +34% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 2.4% vs local median 3.3% in Hollywood — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.
• At $6,316/mo this rent would consume 79% of the median local household income ($96k/yr) — 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 171 days. Have you received any prior offers? Is the seller open to a 55% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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.
• 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.