6611 SW 72nd St #38

South Miami, FL 33143

$899,000D

3 bd · 2.5 ba · 2,200 sqft · Built 1977 · Townhouse · Pending · 105 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $7,658/mo
• Mortgage (P&I): −$4,714
• Tax + insurance: −$1,498
• HOA: −$0
• Vac / Maint / Mgmt: −$1,608
• Net cashflow: $-163/mo
• Annual: $-1,960/yr
• Cap rate: 6.07%
• Cash-on-cash: -0.78%
• DSCR: 0.97
• 1% rule: 0.85%
• Cash to close: $251,720

Investor read

• This is a 3-bed/2.5-bath townhouse listed at $899k. Condition is rated excellent.
• At list price, monthly cash flow is $-163 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $875k (2.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $766k (14.8% below list).
• It's been on market 105 days — a 9% lower offer ($818k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $766k (14.8% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $6k of loan paydown is wiped out by about $27k of value loss. Plan a longer hold.
• Location reads 80/100 on livability (#118 in FL, #1,791 nationally) — a professional / high-income tenant draw. Strengths: commute A+, health & safety A+, amenities B+; Watch: crime D-, 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.
• Zoned schools: Ludlam Elementary School (math 47% / reading 52%, grade D, #1,088 of 2,144 statewide, top 53%, 269 students, 56% FRL); South Miami Middle School (math 59% / reading 67%, grade B+, #111 of 571 statewide, top 20%, 725 students, 44% FRL); South Miami Senior High School (math 19% / reading 35%, grade F, #478 of 667 statewide, top 73%, 1,507 students, 59% FRL).
• Market conditions: Rents rising fast (+4.9%/yr); 268 active listings in the ZIP; 22 comparable units currently listed for rent nearby; rentals at typical pace (median 23d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 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.
• Climate carrying-cost: severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 7→29/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• At $7,658/mo this rent would consume 111% of the median local household income ($83k/yr) (locally 1760% 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 105 days. Have you received any prior offers? Is the seller open to a 15% concession, seller financing, or rate buy-down credit?
• Built in 1977 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• Schools are A-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 D 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?