602 New Providence Promenade #17602

Four Corners, FL 33897

$219,000D-

3 bd · 2.0 ba · 1,227 sqft · Built 2004 · Condo · Active · 188 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,122/mo
• Mortgage (P&I): −$1,148
• Tax + insurance: −$365
• HOA: −$1,158
• Vac / Maint / Mgmt: −$446
• Net cashflow: $-995/mo
• Annual: $-11,940/yr
• Cap rate: 0.84%
• Cash-on-cash: -19.47%
• DSCR: 0.13
• 1% rule: 0.97%
• Cash to close: $61,320

Investor read

• This is a 3-bed/2.0-bath condo listed at $219k. Condition is rated good.
• At list price, monthly cash flow is $-995 ($-12k/yr) — negative.
• To cash-flow at today's rent, offer at most $75k (65.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $212k (3.1% below list).
• It's been on market 188 days — a 12% lower offer ($193k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $75k (65.7% below list) — sets the bar for cash-flow.
• In year one you build about $180 of equity ($2k loan paydown + $-1k appreciation (-0.6% local appreciation)).
• Location reads 69/100 on livability (#453 in FL) — a middle-class / working-renter tenant base. Strengths: housing A+, cost of living A-; Watch: amenities F, health & safety F.
• Polk (suburban): math 39% / reading 43% proficiency, ranked #62 of 73 in FL (top 85%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Loughman Oaks Elementary School (math 36% / reading 36%, grade F, #1,670 of 2,144 statewide, top 78%, 1,052 students, 37% FRL); Lake Alfred Polytech Academy (math 41% / reading 43%, grade D-, #340 of 571 statewide, top 61%, 645 students, 59% FRL); Davenport High School (2,333 students, 37% FRL) — zoned schools average 44% FRL vs 60% district-wide (15 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: HOA is 55% of rent.
• Market conditions: Rents soft (-2.7%/yr); 744 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals lingering (median 51d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 65% of comp listings sitting > 30 days — soft ceiling on asking rent; 10,384 units permitted in Polk County in 2024 (1,716 in 5+ unit buildings).
• Polk County population projected at +33% 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→24/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 0.8% vs local median 3.4% in Four Corners — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.
• This rent runs 36% of the median local income ($71k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 188 days. Have you received any prior offers? Is the seller open to a 66% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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 F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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?