208 SW 1st Ct

Pompano Beach, FL 33060

$643,000D

6 bd · 3.9 ba · 2,028 sqft · Built 1980 · MultiFamily · Active · 120 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $6,095/mo
• Mortgage (P&I): −$3,372
• Tax + insurance: −$1,664
• HOA: −$0
• Vac / Maint / Mgmt: −$1,280
• Net cashflow: $-221/mo
• Annual: $-2,649/yr
• Cap rate: 5.88%
• Cash-on-cash: -1.47%
• DSCR: 0.93
• 1% rule: 0.95%
• Cash to close: $180,040

Investor read

• This is a 3 × 2-bed/1.3-bath units multifamily listed at $643k.
• At list price, monthly cash flow is $-221 ($-3k/yr) — negative. Per door: $-74/mo.
• To cash-flow at today's rent, offer at most $604k (6.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $610k (5.2% below list).
• It's been on market 120 days — a 9% lower offer ($585k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $585k (9.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $19k of value loss. Plan a longer hold.
• Location reads 74/100 on livability (#284 in FL, #4,541 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, housing A+, cost of living B+; Watch: schools D+, employment D+, amenities F.
• Broward (suburban): math 42% / reading 53% proficiency, ranked #46 of 73 in FL (top 63%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: property tax is 2.6% of price.
• Market conditions: Rents rising (+2.1%/yr); 340 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 2,111 units permitted in Broward County in 2024 (1,265 in 5+ unit buildings).
• Broward County population projected at +34% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts since 13y ago; this cycle's ask has dropped $57k (8%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $320k; list at $643k implies a 101% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 7→27/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.9% vs local median 3.1% in Pompano 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.
• At $6,095/mo this rent would consume 113% of the median local household income ($65k/yr) (locally 2870% 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 120 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• 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?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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 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?