525 Capri K

Delray Beach, FL 33484

$65,900B+

2 bd · 2.0 ba · 910 sqft · Built 1978 · Townhouse · Active · 81 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,006/mo
• Mortgage (P&I): −$346
• Tax + insurance: −$173
• HOA: −$771
• Vac / Maint / Mgmt: −$421
• Net cashflow: $295/mo
• Annual: $3,541/yr
• Cap rate: 11.67%
• Cash-on-cash: 19.19%
• DSCR: 1.85
• 1% rule: 3.04%
• Cash to close: $18,452

Investor read

• This is a 2-bed/2.0-bath townhouse listed at $66k. Condition is rated fair.
• At list price, monthly cash flow is $295 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $66k).
• It's been on market 81 days — a 6% lower offer ($62k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $62k (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $456 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 77/100 on livability (#202 in FL, #3,160 nationally) — a middle-class / working-renter tenant base. Strengths: housing A+, health & safety A+, commute A-; Watch: cost of living C-, crime D-, amenities F.
• Palm Beach (suburban): math 46% / reading 53% proficiency, ranked #34 of 73 in FL (top 47%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Orchard View Elementary School (math 48% / reading 47%, grade D, #1,182 of 2,144 statewide, top 55%, 596 students, 76% FRL); Carver Middle School (math 22% / reading 34%, grade F, #486 of 571 statewide, top 86%, 732 students, 73% FRL); Spanish River Community High School (math 64% / reading 74%, grade B, #63 of 667 statewide, top 10%, 2,578 students, 25% FRL).
• Watch-outs: property tax is 2.7% of price; HOA is 38% of rent.
• Market conditions: Rents rising fast (+4.3%/yr); 659 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals lingering (median 64d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 75% of comp listings sitting > 30 days — soft ceiling on asking rent; 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.
• 3 sale attempts since 20y ago; this cycle's ask has dropped $13k (17%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $53k; 24% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (-3.0% appreciation + 4.3% rent growth), your $18k cash investment doubles in ~6 years — after that, you're playing with house money.
• Climate carrying-cost: severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 7→26/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 11.7% vs local median 4.2% in Delray Beach — 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.

Questions for listing agent

• It's been on market 81 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1978 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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 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?

Repairs flagged (vision-AI assessment)

• Minor: Peeling paint on exterior walls — The peeling paint is a cosmetic issue that can be easily fixed with a fresh coat of paint.
• Minor: Minor scuffs and marks on flooring — These can be easily fixed with a thorough cleaning and possibly some touch-up paint.
• Minor: Peeling paint on interior walls — The peeling paint is a cosmetic issue that can be easily fixed with a fresh coat of paint.
• Minor: Signs of wear in bathroom tile — The signs of wear can be easily fixed with a fresh coat of grout and possibly some touch-up paint.
• Minor: Minor issues with electrical wiring and plumbing — These issues can be easily fixed with a professional inspection and repair if necessary.