934 SW 3rd St

Miami, FL 33130

$1,895,000F

2 bd · 1.0 ba · 1,068 sqft · Built 1980 · MultiFamily · Active · 16 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,825/mo
• Mortgage (P&I): −$9,938
• Tax + insurance: −$1,979
• HOA: −$0
• Vac / Maint / Mgmt: −$1,013
• Net cashflow: $-8,105/mo
• Annual: $-97,259/yr
• Cap rate: 1.43%
• Cash-on-cash: -17.37%
• DSCR: 0.23
• 1% rule: 0.25%
• Cash to close: $530,600

Investor read

• This is a 2-bed/1.0-bath multifamily listed at $1.90M.
• At list price, monthly cash flow is $-8k ($-97k/yr) — negative.
• To cash-flow at today's rent, offer at most $463k (75.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $483k (74.5% below list).
• It's been on market 16 days — a 2% lower offer ($1.87M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $463k (75.6% below list) — sets the bar for cash-flow.
• Local home prices are declining (-1.8%/yr); year-one equity from $13k of loan paydown is wiped out by about $34k of value loss. Plan a longer hold.
• Location reads 78/100 on livability (#177 in FL, #2,724 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, health & safety A+; Watch: employment C-, crime F, cost of living F.
• Miami-Dade (suburban): math 45% / reading 54% proficiency, ranked #40 of 73 in FL (top 55%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 64% free/reduced lunch — lower-income household profile, screen leases tightly.
• Watch-outs: flood insurance adds $427/mo.
• Market conditions: Rents soft (-0.5%/yr); 639 active listings in the ZIP; 10,051 units permitted in Miami-Dade County in 2024 (7,758 in 5+ unit buildings).
• Miami-Dade County population projected at +28% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Current owner paid $40k; list at $1.90M implies a 4638% 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→31/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 1.4% vs local median 1.9% in Miami — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.
• At $4,825/mo this rent would consume 95% of the median local household income ($61k/yr) (locally 5231% 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?
• 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.
• Schools are B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.