935 Ocean Shore Blvd #217

Ormond Beach, FL 32176

$305,000D-

1 bd · 1.0 ba · 924 sqft · Built 1973 · Condo · Active · 168 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,631/mo
• Mortgage (P&I): −$1,599
• Tax + insurance: −$508
• HOA: −$1,200
• Vac / Maint / Mgmt: −$553
• Net cashflow: $-1,229/mo
• Annual: $-14,749/yr
• Cap rate: 1.46%
• Cash-on-cash: -17.27%
• DSCR: 0.23
• 1% rule: 0.86%
• Cash to close: $85,400

Investor read

• This is a 1-bed/1.0-bath condo listed at $305k. Condition is rated good.
• At list price, monthly cash flow is $-1k ($-15k/yr) — negative.
• To cash-flow at today's rent, offer at most $127k (58.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $263k (13.7% below list).
• It's been on market 168 days — a 12% lower offer ($268k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $127k (58.3% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $9k of value loss. Plan a longer hold.
• Location reads 83/100 on livability (#55 in FL, #965 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, housing A+, health & safety A+; Watch: commute F.
• Volusia (suburban): math 44% / reading 49% proficiency, ranked #47 of 73 in FL (top 64%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Beachside Elementary School (math 57% / reading 52%, grade C, #892 of 2,144 statewide, top 44%, 556 students, 66% FRL); Ormond Beach Middle School (math 57% / reading 55%, grade B-, #175 of 571 statewide, top 31%, 990 students, 48% FRL); Seabreeze High School (math 31% / reading 56%, grade F, #248 of 667 statewide, top 38%, 1,654 students, 41% FRL) — zoned schools at 52% FRL track the district average.
• Watch-outs: HOA is 46% of rent.
• Market conditions: Rents rising fast (+5.2%/yr); 566 active listings in the ZIP; 33 comparable units currently listed for rent nearby; rentals lingering (median 115d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 79% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 3,402 units permitted in Volusia County in 2024 (681 in 5+ unit buildings).
• Volusia County population projected at +19% 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→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 1.5% vs local median 3.9% in Ormond Beach — 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 40% of the median local income ($78k/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 168 days. Have you received any prior offers? Is the seller open to a 58% concession, seller financing, or rate buy-down credit?
• Built in 1973 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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 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?