220 W Indies Rd

Tavernier, FL 33070

$714,900D-

4 bd · 2.0 ba · 1,541 sqft · Built 1982 · MultiFamily · Active · 28 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,834/mo
• Mortgage (P&I): −$3,749
• Tax + insurance: −$1,172
• HOA: −$0
• Vac / Maint / Mgmt: −$1,225
• Net cashflow: $-312/mo
• Annual: $-3,748/yr
• Cap rate: 6.48%
• Cash-on-cash: 0.68%
• DSCR: 1.03
• 1% rule: 0.82%
• Cash to close: $200,172

Investor read

• This is a 2 × 2-bed/1.0-bath units multifamily listed at $715k.
• At list price, monthly cash flow is $-312 ($-4k/yr) — negative. Per door: $-156/mo.
• To cash-flow at today's rent, offer at most $660k (7.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $583k (18.4% below list).
• It's been on market 28 days — a 2% lower offer ($704k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $583k (18.4% below list) — sets the bar for 1% rule.
• In year one you build about $8k of equity ($5k loan paydown + $3k appreciation (0.5% local appreciation)).
• Location reads 60/100 on livability (#807 in FL) — a middle-class / working-renter tenant base. Strengths: crime A+, housing B; Watch: amenities F, commute F, employment D-.
• Monroe (town): math 50% / reading 55% proficiency, ranked #23 of 73 in FL (top 32%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Watch-outs: flood insurance adds $427/mo.
• Market conditions: 142 active listings in the ZIP; solid renter incomes; 332 units permitted in Monroe County in 2024 (42 in 5+ unit buildings).
• Monroe County population projected at +28% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 3 sale attempts since 2y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $100; list at $715k implies a 714800% gain — meaningful room to come down on a strong offer.
• By year 5, paydown + projected appreciation supports a ~$41k 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 — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.5% vs local median 1.1% in Tavernier — 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.
• At $5,834/mo this rent would consume 93% of the median local household income ($75k/yr) (locally 204% 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?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• 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?
• 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.