505 Lighthouse Way · Sanibel, FL 33957

$1,687,000

4 bd · 3.0 ba · 2,491 sqft · SingleFamily public records · 103 Days on market

Built 1965 0.31 ac lot Est $1410k · 20% over $42/mo HOA

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Why this score? — see what drove the D grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +20.4/30.0
• DSCR +6.5/10.0
• 1% rule +4.5/10.0
• Schools +4.1/10.0
• Livability +3.4/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• ARV discount +0.0/15.0
• Appreciation +0.0/10.0

Listing remarks

Rare opportunity offered on Lighthouse Way.  One of Sanibel’s most premier East End streets, this property presents an opportunity to create a custom waterfront residence in a location where finished homes consistently command top-tier value. Just minutes to the Gulf with deep-water, direct-access boating, the property features a seawall, generous dock area, a 16,000-lb boat lift, and two additional davits.  A boater’s dream setup seldom available on the East End. The home offers all-concrete block construction on both the first and second floors, providing a solid structural base for future plans.  A new $90,000 commercial-grade standing-seam metal roof and fasci

Key facts

• Boat lift
• Seawall
• Waterfront residence

Tags

• WATERFRONT RESIDENCE
• SEAWALL
• DOCK AREA
• BOAT LIFT
• ADDITIONAL DAVITS
• POOL AND SPA FOOTPRINT

Property features AI

Finance

• Other: Private in-ground pool and spa (pool/spa combo) with pool equipment; Waterfront with canal access, navigable water, and seawall; Lot is rectangular on a cul-de-sac with dimensions 100 x 130 x 100 x 130 and southern exposure
• HOA & community: Homeowners association with annual fee of $500; Association covers legal/accounting, reserve fund, and road maintenance; Association amenities include beach rights, beach access, boat dock, and boat ramp; Community features: boat facilities, non-gated

Exterior

• Parking: Attached 2-car garage; Driveway; Paved parking
• Utilities: Public water; Public sewer; Cable available
• Home design: 2-story property; North-facing
• Construction: Block, concrete, and stucco construction; Metal roof; Built on foundation (known damage noted)
• Exterior features: Open patio and porch; Patio and porch; Outdoor kitchen; Automatic sprinklers; Sprinkler/irrigation; Paved road

Interior

• Bathrooms: 3 full bathrooms; 1 half bathroom
• Heating & cooling: Central heating (electric); Central air conditioning (electric)
• Interior features: Entrance foyer; High ceilings; Cable TV available; French doors/atrium doors; Casement windows; Fireplace; Unfurnished; Florida room

What this means for you Summary

Snapshot

• This is a 4-bed/3.0-bath single-family listed at $1.69M.

Deal economics

• At list price, monthly cash flow is $2k ($21k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.61M (4.5% below list).
• Recommended offer: $1.54M (9.0% below list) — sets the bar for market timing.
• Cap rate 7.9% vs local median 3.8% in Sanibel — 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.

Location & tenants

• Location reads 67/100 on livability (#541 in FL) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+; Watch: housing D+, amenities F, commute F.
• Lee (suburban): math 47% / reading 50% proficiency, ranked #42 of 73 in FL (top 58%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: The Sanibel School (math 92% / reading 92%, grade A+, #5 of 2,144 statewide, top 0%, 289 students, 12% FRL); South Fort Myers High School (math 23% / reading 30%, grade F, #489 of 667 statewide, top 74%, 1,917 students, 50% FRL) — zoned schools average 31% FRL vs 57% district-wide (26 pts lower); this property's tenant base skews higher-income than the district average.
• Market conditions: 526 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals at typical pace (median 26d on market — plan ~3-4 weeks tenant-placement turnaround); 15,411 units permitted in Lee County in 2024 (4,686 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $12k of loan paydown is wiped out by about $51k of value loss. Plan a longer hold.
• Lee County population projected at +44% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

Negotiation context

• It's been on market 103 days — a 9% lower offer ($1.54M) is reasonable based on typical stale-listing flexibility.
• Current owner paid $680k; list at $1.69M implies a 148% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: flood insurance adds $427/mo.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance); 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.

Recommended offer $1,535,170 (9.0% below list)

Questions for the listing agent

1. It's been on market 103 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
2. Built in 1965 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
4. What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
5. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
6. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
7. Schools are A-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?
8. 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?
9. 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.
10. What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.
11. How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.

Investment metrics

• 1% rule: 0.95% ✗
• Cap rate: 7.86%
• Cash-on-cash: 5.60%
• DSCR: 1.25
• GRM: 8.7

CMA / ARV

• ARV (on-the-fly): $1,409,906
• Comps found: 3

Show comp detail 3 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
355 E Gulf Dr	0.25mi	3/2.0 (-1)	2,634 (+6%)	5mo	$1,035,000	$393	66
284 Ferry Landing Dr	0.38mi	3/2.5 (-1)	2,148 (-14%)	3mo	$1,215,000	$566	50
739 Anchor Dr	0.58mi	3/2.0 (-1)	2,209 (-11%)	0mo	$1,600,000	$724	45

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: -9.3%
• Equity multiple: 0.66×
• Total profit: $-160,452
• Equity at exit: $251,537

10-year hold

• IRR: 0.2%
• Equity multiple: 1.01×
• Total profit: $5,137
• Equity at exit: $145,861

Cash invested: $472,360 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 87 Strongly Landlord-Friendly
• State Florida: 87 Strongly Landlord-Friendly · R+3
• County: — inherits STATE
• City: — inherits STATE

3-day pay-or-quit; preempts local rent control; landlord-friendly statutes. Court speed varies by county.

Methodology + full state rankings →

ZIP-level market 33957

• Home prices YoY: -15.7%
• Active inventory: 526
• Price-to-rent: 8.7×

Monthly cashflow live

• Estimated rent: $16,104 medium
• Mortgage (P&I): −$8,847
• Tax from tax record: −$928 /mo · $11,135/yr
• Insurance: −$703
• Flood insurance flood zone: −$427 /mo · $5,118/yr
• HOA: −$42
• Vacancy / Maint / Mgmt: −$3,382
• Net cashflow: $1,776

Break-even live

Break-even rent $13,856

Max offer price $1,687,000

Occupancy floor 84%

Sensitivity live

Price	-10% $2,731	-5% $2,253	+0% $1,776	+5% $1,298	+10% $821
Rent	-10% $504	-5% $1,140	+0% $1,776	+5% $2,412	+10% $3,048
Rate	-1.0pp $2,625	-0.5pp $2,205	base $1,776	+0.5pp $1,339	+1.0pp $894

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $421,750
• Closing costs: $50,610
• Reserves months: —
• Total cash needed: —

Rent comps 3 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
424 Lagoon Dr Sanibel, FL	3.0	2.0	1704	$18,200	$10.68	25d	1	0.19mi
1111 Schooner Pl Sanibel, FL	4.0	3.0	3073	$19,000	$6.18	25d	1	0.25mi
702 Anchor Dr Sanibel, FL	4.0	3.0	3100	$6,000	$1.94	25d	1	0.48mi

HOA detail

• Monthly dues: $42 · $504/yr
• Likely covers: water

Listing history 4 events

1. 2026-05-18
   status Pending
2. 2026-02-04
   listed $1,687,000 Active
3. 1999-09-16
   soldstatus $680,000
4. 1990-08-16
   soldstatus $550,000

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast FL · Resets to sale price

• Current annual tax: $11,135 · $928/mo
• Projected year-2 tax: $14,002 · $1,167/mo
• Expected delta: +$2,867/yr (+$239/mo · 25.7%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 10/10 Extreme FEMA zone AE · 99% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 10/10 Extreme 7 d/yr ≥113°F today · 26 d/yr by 30 yrs out
• 💨 Wind 10/10 Extreme 99% chance of damaging wind over 30 yrs
• 🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 1 by 30 yrs out

Taxation est. · year 1

• Rental income: $193,247
• − Mortgage interest: −$94,498
• − Property taxes: −$11,135
• − Insurance: −$13,554
• − Repairs & maintenance: −$15,460
• − Management: −$15,460
• − HOA: −$504
• − Depreciation: −$49,076
• Taxable loss: −$6,439
• Est. tax savings @ 24.0%: +$1,545
• After-tax cash flow: $22,857/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Lee
• NCES district ID: 1201080
• Math proficiency: 47% ▼ -11.00%
• Reading proficiency: 50% ▼ -4.00%
• Median HH income: $49,518
• Composite: 41.49/100
• National rank: #3458
• State rank: #42 of 73 in FL

Livability — Sanibel

• Score: 67/100
• State rank: #541
• US rank: #10166

Category grades

Amenities F Commute F Cost of living F Crime A+ Employment A+ Housing D+ Health & safety D- User ratings A+

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Sanibel, FL
• City population: 6,402
• Population (ZIP): 6,402

Population outlook (Lee County) Hauer SSP2

• Today (2025): 871,946 people
• By 2030: 955,468 · +9.6%
• By 2040: 1,113,587 · +27.7%
• By 2050: 1,256,891 · +44.1%
• By 2075: 1,560,270 · +78.9%
• By 2100: 1,726,848 · +98.0%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (95%)
• Race & ethnicity: White 95% Two or more races 2% Asian 1%
• Common ancestry: Italian 4% Romanian 4% Slovak 2%
• Foreign-born: 5% · Canada, China
• Languages at home: 96% English-only · German/W. Germanic 1% Spanish 1% French/Haitian/Cajun 1%

Political lean MEDSL · Lee

• 2024 margin: Strong R (+28.4) · D 35.5% · R 63.9%
• 2008→2024 swing: -18.0pp toward R · 2008: -10.4pp · 2024: -28.4pp
• All cycles: 2024: R+28.4 2020: R+19.2 2016: R+20.4 2012: R+16.6 2008: R+10.4

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -93.08%
• Current HPI: 501.0
• Rent YoY: —
• Metro: —
• State GDP YoY: ▲ 3.28%
• F500 in state: 36

Industry mix (Fortune 500 HQ in FL)

Industry	F500 HQs	Revenue
▸Industrial Technology	2	$29B
▸Insurance	2	$17B
▸Retail	1	$60B
▸Technology Distribution	1	$58B
▸Homebuilding	1	$35B
▸Technology Manufacturing	1	$35B

Price history

+206.7% since first listed

4 events — show timeline

• 2026-05-18 Pending — FORTMLS
• 2026-02-04 Listed $1,687,000 FORTMLS
• 1999-09-16 Sold (Public Records) $680,000 Public Records
• 1990-08-16 Sold (Public Records) $550,000 Public Records

Property tax history

+0.8%/yr

Latest (2025): $11,135 · +1.9% YoY. Source: county tax records.