539 Bay Ave · DeFuniak Springs, FL 32435

$145,000

3 bd · 2.0 ba · 2,156 sqft · SingleFamily public records · 76 Days on market

Built 1930 1.18 ac lot

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Why this score? — see what drove the B+ grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +28.8/30.0
• DSCR +10.0/10.0
• Appreciation +10.0/10.0
• ARV discount +7.5/15.0
• 1% rule +6.6/10.0
• Schools +5.2/10.0
• Livability +3.2/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0

Listing remarks MLS

Great investment opportunity in the growing community of DeFuniak Springs This a historic 1930s single-family home offers strong potential for investors looking for a renovation, rental, or resale project. Situated on 1.18 acre residential lot in an established neighborhood, it provides a solid opportunity to add value and capitalize on the area's increasing demand for affordable housing. Conveniently located near downtown DeFuniak Springs, shopping, schools, and local amenities, the property combines small-town charm with excellent investment potential. With the right vision and updates, this could become a profitable flip, long-term rental, or portfolio addition.

Key facts

• 1.18 acre lot
• Built 1930
• Listed 76 days

Tags

• HISTORIC SINGLE-FAMILY HOME
• OVER AN ACRE RESIDENTIAL LOT

Property features AI

Exterior

• Utilities: Electric service; Public water; Public sewer
• Home design: Florida Cottage style; Single-story home; Built in 1930
• Construction: Metal roof; Frame construction with wood siding; Total building area reported as 2156 sq ft
• Exterior features: Lot approximately 1.18 acres; Lot dimensions: 196 x 208.6 x 332.6 x 81.25 x 121 x 129.2; No pool indicated; Subdivision: DEFUNIAK SPRINGS TOWN OF; Zoned for single-family residential

Interior

• Kitchen: Kitchen located on the first floor
• Bedrooms: 3 bedrooms; Primary bedroom on the first floor
• Flooring: Hardwood flooring; Laminate flooring
• Bathrooms: 2 full bathrooms
• Heating & cooling: Central heating; Central air conditioning; Ceiling fans
• Interior features: Vaulted ceilings; 6 total rooms

What this means for you Summary

Snapshot

• This is a 3-bed/2.0-bath single-family listed at $145k.

Deal economics

• At list price, monthly cash flow is $486 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $145k).
• Recommended offer: $136k (6.0% below list) — sets the bar for market timing.
• Cap rate 10.3% vs local median 4.8% in DeFuniak Springs — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

Location & tenants

• Location reads 64/100 on livability (#694 in FL) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: health & safety C-, crime D, amenities F.
• Walton (rural): math 62% / reading 61% proficiency, ranked #10 of 73 in FL (top 14%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Freeport Elementary School (math 50% / reading 57%, grade C, #949 of 2,144 statewide, top 45%, 1,123 students, 55% FRL); Emerald Coast Middle School (math 70% / reading 65%, grade A-, #77 of 571 statewide, top 14%, 868 students, 24% FRL); Freeport Senior High School (math 47% / reading 62%, grade C-, #138 of 667 statewide, top 21%, 557 students, 43% FRL).
• Market conditions: 123 active listings in the ZIP; 2,883 units permitted in Walton County in 2024 (1,322 in 5+ unit buildings).

Forward outlook

• In year one you build about $16k of equity ($1k loan paydown + $14k appreciation (10.0% local appreciation)).
• Walton County population projected at +46% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $41k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 3, paydown + projected appreciation supports a ~$39k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• It's been on market 76 days — a 6% lower offer ($136k) is reasonable based on typical stale-listing flexibility.
• 5 sale attempts since 12y ago; this cycle's ask has dropped $20k (12%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $34k; list at $145k implies a 326% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1930 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $136,300 (6.0% below list)

Questions for the listing agent

1. It's been on market 76 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
2. Built in 1930 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
6. 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?
7. 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.
8. 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.
9. How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.

Investment metrics

• 1% rule: 1.16% ✓
• Cap rate: 10.31%
• Cash-on-cash: 14.35%
• DSCR: 1.64
• GRM: 7.2

CMA / ARV

• ARV (on-the-fly): $452,760
• Comps found: 2

Show comp detail 2 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
516 College Ave	0.07mi	3/2.5	2,126 (-1%)	9mo	$275,000	$129	85
215 College Ave	0.35mi	3/2.0	2,212 (+3%)	18mo	$464,250	$210	64

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

10.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 34.8%
• Equity multiple: 3.71×
• Total profit: $109,831
• Equity at exit: $130,627

10-year hold

• IRR: 30.0%
• Equity multiple: 8.36×
• Total profit: $298,970
• Equity at exit: $281,703

Cash invested: $40,600 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 87 Strongly Landlord-Friendly
• State Florida: 87 Strongly Landlord-Friendly · R+3
• County: — inherits STATE
• City: — inherits STATE

3-day pay-or-quit; preempts local rent control; landlord-friendly statutes. Court speed varies by county.

Methodology + full state rankings →

ZIP-level market 32435

• Home prices YoY: 4.0%
• Active inventory: 123
• Price-to-rent: 7.2×

Monthly cashflow live

• Estimated rent: $1,685 medium
• Mortgage (P&I): −$760
• Tax from tax record: −$25 /mo · $299/yr
• Insurance: −$60
• HOA: −$0
• Vacancy / Maint / Mgmt: −$354
• Net cashflow: $486

Break-even live

Break-even rent $1,071

Max offer price $145,000

Occupancy floor 66%

Sensitivity live

Price	-10% $568	-5% $527	+0% $486	+5% $279	+10% $229
Rent	-10% $353	-5% $419	+0% $486	+5% $552	+10% $619
Rate	-1.0pp $559	-0.5pp $523	base $486	+0.5pp $448	+1.0pp $410

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $36,250
• Closing costs: $4,350
• Reserves months: —
• Total cash needed: —

Listing history 20 events

1. 2026-06-10
   statusdays on marketlisting id $145,000 Pending 76 DOM
2. 2026-06-09
   days on market $145,000 Active 91 DOM
3. 2026-06-08
   days on market $145,000 Active 90 DOM
4. 2026-06-07
   days on market $145,000 Active 89 DOM
5. 2026-06-05
   days on market $145,000 Active 86 DOM
6. 2026-06-03
   days on market $145,000 Active 85 DOM
7. 2026-06-03
   days on market $145,000 Active 84 DOM
8. 2026-06-01
   days on market $145,000 Active 83 DOM
9. 2026-05-31
   days on market $145,000 Active 82 DOM
10. 2026-05-30
    days on market $145,000 Active 81 DOM
11. 2026-05-15
    status Active 676-char remark

    Show marketing remark (676 chars)

    Great investment opportunity in the growing community of DeFuniak Springs This a historic 1930s single-family home offers strong potential for investors looking for a renovation, rental, or resale project. Situated on 1.18 acre residential lot in an established neighborhood, it provides a solid opportunity to add value and capitalize on the area's increasing demand for affordable housing. Conveniently located near downtown DeFuniak Springs, shopping, schools, and local amenities, the property combines small-town charm with excellent investment potential. With the right vision and updates, this could become a profitable flip, long-term rental, or portfolio addition.

12. 2026-05-15
    price $145,000 676-char remark

    Show marketing remark (676 chars)

    Great investment opportunity in the growing community of DeFuniak Springs This a historic 1930s single-family home offers strong potential for investors looking for a renovation, rental, or resale project. Situated on 1.18 acre residential lot in an established neighborhood, it provides a solid opportunity to add value and capitalize on the area's increasing demand for affordable housing. Conveniently located near downtown DeFuniak Springs, shopping, schools, and local amenities, the property combines small-town charm with excellent investment potential. With the right vision and updates, this could become a profitable flip, long-term rental, or portfolio addition.

13. 2026-05-15
    status Active 676-char remark

    Show marketing remark (676 chars)

    Great investment opportunity in the growing community of DeFuniak Springs This a historic 1930s single-family home offers strong potential for investors looking for a renovation, rental, or resale project. Situated on 1.18 acre residential lot in an established neighborhood, it provides a solid opportunity to add value and capitalize on the area's increasing demand for affordable housing. Conveniently located near downtown DeFuniak Springs, shopping, schools, and local amenities, the property combines small-town charm with excellent investment potential. With the right vision and updates, this could become a profitable flip, long-term rental, or portfolio addition.

14. 2026-05-15
    price $145,000 676-char remark

    Show marketing remark (676 chars)

    Great investment opportunity in the growing community of DeFuniak Springs This a historic 1930s single-family home offers strong potential for investors looking for a renovation, rental, or resale project. Situated on 1.18 acre residential lot in an established neighborhood, it provides a solid opportunity to add value and capitalize on the area's increasing demand for affordable housing. Conveniently located near downtown DeFuniak Springs, shopping, schools, and local amenities, the property combines small-town charm with excellent investment potential. With the right vision and updates, this could become a profitable flip, long-term rental, or portfolio addition.

15. 2026-04-30
    status Pending 676-char remark

    Show marketing remark (676 chars)

    Great investment opportunity in the growing community of DeFuniak Springs This a historic 1930s single-family home offers strong potential for investors looking for a renovation, rental, or resale project. Situated on 1.18 acre residential lot in an established neighborhood, it provides a solid opportunity to add value and capitalize on the area's increasing demand for affordable housing. Conveniently located near downtown DeFuniak Springs, shopping, schools, and local amenities, the property combines small-town charm with excellent investment potential. With the right vision and updates, this could become a profitable flip, long-term rental, or portfolio addition.

16. 2026-03-07
    listed $165,000 Active 676-char remark

    Show marketing remark (676 chars)

    Great investment opportunity in the growing community of DeFuniak Springs This a historic 1930s single-family home offers strong potential for investors looking for a renovation, rental, or resale project. Situated on 1.18 acre residential lot in an established neighborhood, it provides a solid opportunity to add value and capitalize on the area's increasing demand for affordable housing. Conveniently located near downtown DeFuniak Springs, shopping, schools, and local amenities, the property combines small-town charm with excellent investment potential. With the right vision and updates, this could become a profitable flip, long-term rental, or portfolio addition.

17. 2026-03-07
    listed $165,000 Active 676-char remark

    Show marketing remark (676 chars)

    Great investment opportunity in the growing community of DeFuniak Springs This a historic 1930s single-family home offers strong potential for investors looking for a renovation, rental, or resale project. Situated on 1.18 acre residential lot in an established neighborhood, it provides a solid opportunity to add value and capitalize on the area's increasing demand for affordable housing. Conveniently located near downtown DeFuniak Springs, shopping, schools, and local amenities, the property combines small-town charm with excellent investment potential. With the right vision and updates, this could become a profitable flip, long-term rental, or portfolio addition.

18. 2015-04-20
    soldstatus $34,000 709-char remark

    Show marketing remark (709 chars)

    Three bedroom, two bathroom, 1 story charmer that could use your special touch. It was built in 1930 and has 2156 square feet of potential and is situated on 1.18 acres in a very convenient corner location in the city limits. This home features original hardwood floors, a newer metal roof, a large kitchen and a unique floor plan with multiple rooms that have numerous possibilities such as living room, formal dining room, parlor or family room. The bathrooms have had some beautiful updating done but stills need your TLC. Are you looking for that affordable historical home that you could make all your own? Well here it is, you found it! Now gives us a call and make it all yours! Home is sold ''AS IS''.

19. 2015-04-20
    soldstatus $34,000 709-char remark

    Show marketing remark (709 chars)

    Three bedroom, two bathroom, 1 story charmer that could use your special touch. It was built in 1930 and has 2156 square feet of potential and is situated on 1.18 acres in a very convenient corner location in the city limits. This home features original hardwood floors, a newer metal roof, a large kitchen and a unique floor plan with multiple rooms that have numerous possibilities such as living room, formal dining room, parlor or family room. The bathrooms have had some beautiful updating done but stills need your TLC. Are you looking for that affordable historical home that you could make all your own? Well here it is, you found it! Now gives us a call and make it all yours! Home is sold ''AS IS''.

20. 2014-11-26
    listed $38,500 709-char remark

    Show marketing remark (709 chars)

    Three bedroom, two bathroom, 1 story charmer that could use your special touch. It was built in 1930 and has 2156 square feet of potential and is situated on 1.18 acres in a very convenient corner location in the city limits. This home features original hardwood floors, a newer metal roof, a large kitchen and a unique floor plan with multiple rooms that have numerous possibilities such as living room, formal dining room, parlor or family room. The bathrooms have had some beautiful updating done but stills need your TLC. Are you looking for that affordable historical home that you could make all your own? Well here it is, you found it! Now gives us a call and make it all yours! Home is sold ''AS IS''.

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast FL · Resets to sale price

• Current annual tax: $299 · $25/mo
• Projected year-2 tax: $1,204 · $100/mo
• Expected delta: +$905/yr (+$75/mo · 302.6%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Taxation est. · year 1

• Rental income: $20,223
• − Mortgage interest: −$8,122
• − Property taxes: −$299
• − Insurance: −$725
• − Repairs & maintenance: −$1,618
• − Management: −$1,618
• − Depreciation: −$4,218
• Taxable income: $3,623
• Est. tax owed @ 24.0%: −$870
• After-tax cash flow: $4,958/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Walton
• NCES district ID: 1201980
• Math proficiency: 62% ▼ -4.00%
• Reading proficiency: 61% ▼ -2.00%
• Median HH income: $46,794
• Composite: 52.03/100
• National rank: #1634
• State rank: #10 of 73 in FL

Livability — DeFuniak Springs

• Score: 64/100
• State rank: #694
• US rank: #14475

Category grades

Amenities F Commute F Cost of living A+ Crime D Employment D- Housing A+ Health & safety C- User ratings D-

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: DeFuniak Springs, FL
• City population: 19,746
• Population (ZIP): 6,359

Population outlook (Walton County) Hauer SSP2

• Today (2025): 80,014 people
• By 2030: 88,120 · +10.1%
• By 2040: 103,537 · +29.4%
• By 2050: 117,034 · +46.3%
• By 2075: 143,901 · +79.8%
• By 2100: 155,138 · +93.9%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (83%)
• Race & ethnicity: White 83% Black 6% Two or more races 6% Hispanic / Latino 4%
• Common ancestry: Slovak 5% Scottish 2% Serbian 1%
• Foreign-born: 3% · Canada
• Languages at home: 97% English-only · Spanish 2%

Political lean MEDSL · Walton

• 2024 margin: Solid R (+57.8) · D 20.7% · R 78.6%
• 2008→2024 swing: -12.0pp toward R · 2008: -45.8pp · 2024: -57.8pp
• All cycles: 2024: R+57.8 2020: R+51.7 2016: R+56.1 2012: R+52.0 2008: R+45.8

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 12.25%
• Current HPI: 314.8146
• Rent YoY: —
• Metro: —
• State GDP YoY: ▲ 3.28%
• F500 in state: 36

Industry mix (Fortune 500 HQ in FL)

Industry	F500 HQs	Revenue
▸Industrial Technology	2	$29B
▸Insurance	2	$17B
▸Retail	1	$60B
▸Technology Distribution	1	$58B
▸Homebuilding	1	$35B
▸Technology Manufacturing	1	$35B

Price history

+276.6% since first listed

10 events — show timeline

• 2026-05-15 Relisted — ECAR
• 2026-05-15 Price Changed $145,000 ECAR
• 2026-05-15 Relisted — NAMLS
• 2026-05-15 Price Changed $145,000 NAMLS
• 2026-04-30 Pending — NAMLS
• 2026-03-07 Listed $165,000 NAMLS
• 2026-03-07 Listed $165,000 ECAR
• 2015-04-20 Sold (MLS) $34,000 ECAR
• 2015-04-20 Sold (MLS) $34,000 NAMLS
• 2014-11-26 Listed $38,500 NAMLS

Property tax history

-10.9%/yr

Latest (2025): $299 · +5.6% YoY. Source: county tax records.