2860 S Ocean Blvd #311

Palm Beach, FL 33480

$477,000F

1 bd · 1.5 ba · 1,180 sqft · Built 1971 · Condo · Active · 159 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,539/mo
• Mortgage (P&I): −$2,501
• Tax + insurance: −$1,156
• HOA: −$1,626
• Vac / Maint / Mgmt: −$743
• Net cashflow: $-2,487/mo
• Annual: $-29,847/yr
• Cap rate: 1.11%
• Cash-on-cash: -18.51%
• DSCR: 0.18
• 1% rule: 0.74%
• Cash to close: $133,560

Investor read

• This is a 1-bed/1.5-bath condo listed at $477k.
• At list price, monthly cash flow is $-2k ($-30k/yr) — negative.
• To cash-flow at today's rent, offer at most $325k (31.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $354k (25.8% below list).
• It's been on market 159 days — a 12% lower offer ($420k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $325k (31.9% below list) — sets the bar for cash-flow.
• In year one you build about $28k of equity ($3k loan paydown + $24k appreciation (5.1% local appreciation)).
• Location reads 68/100 on livability (#530 in FL) — a middle-class / working-renter tenant base. Strengths: employment A+, crime A-; Watch: amenities F, commute F, cost of living F.
• Zoned schools: Palm Beach Public School (math 67% / reading 72%, grade A-, #364 of 2,144 statewide, top 19%, 375 students, 35% FRL); Lake Worth Community Middle (math 17% / reading 23%, grade F, #558 of 571 statewide, top 98%, 1,249 students, 75% FRL); Forest Hill Community High School (math 20% / reading 41%, grade F, #434 of 667 statewide, top 66%, 2,407 students, 66% FRL).
• Watch-outs: flood insurance adds $427/mo; HOA is 46% of rent.
• Market conditions: Rents rising (+3.9%/yr); 447 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals at typical pace (median 26d on market — plan ~3-4 weeks tenant-placement turnaround); high-income renter base; 3,974 units permitted in Palm Beach County in 2024 (1,012 in 5+ unit buildings).
• Palm Beach County population projected at +30% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 16 sale attempts since 26y ago; this cycle's ask is 13646% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $270k; list at $477k implies a 77% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$44k 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; extreme-heat days projected 7→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

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 159 days. Have you received any prior offers? Is the seller open to a 32% concession, seller financing, or rate buy-down credit?
• Built in 1971 — 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?
• 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.