11485 2nd St E

Treasure Island, FL 33706

$950,000D-

20 bd · 4.0 ba · 2,736 sqft · Built 1957 · MultiFamily · Pending · 384 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $7,418/mo
• Mortgage (P&I): −$4,982
• Tax + insurance: −$1,809
• HOA: −$0
• Vac / Maint / Mgmt: −$1,558
• Net cashflow: $-931/mo
• Annual: $-11,166/yr
• Cap rate: 5.66%
• Cash-on-cash: -2.27%
• DSCR: 0.90
• 1% rule: 0.78%
• Cash to close: $266,000

Investor read

• This is a 3×1bd/1.0ba + 1×2bd/1.0ba units multifamily listed at $950k.
• At list price, monthly cash flow is $-931 ($-11k/yr) — negative. Per door: $-233/mo.
• To cash-flow at today's rent, offer at most $786k (17.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $742k (21.9% below list).
• It's been on market 384 days — a 12% lower offer ($836k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $742k (21.9% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $7k of loan paydown is wiped out by about $28k of value loss. Plan a longer hold.
• Location reads 76/100 on livability (#215 in FL, #3,355 nationally) — a middle-class / working-renter tenant base. Strengths: health & safety A+, commute A, employment B+; Watch: schools D+, amenities F, cost of living F.
• Pinellas (suburban): math 51% / reading 51% proficiency, ranked #31 of 73 in FL (top 42%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Watch-outs: flood insurance adds $427/mo; built in 1957 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents soft (-0.3%/yr); 610 active listings in the ZIP; solid renter incomes; 2,676 units permitted in Pinellas County in 2024 (1,422 in 5+ unit buildings).
• Pinellas County population projected at +14% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 7 sale attempts since 15y ago; this cycle's ask has dropped $330k (26%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $212k; list at $950k implies a 348% gain — meaningful room to come down on a strong offer.
• 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 8→28/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.7% vs local median 0.7% in Treasure Island — 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 $7,418/mo this rent would consume 85% of the median local household income ($104k/yr) (locally 552% 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 384 days. Have you received any prior offers? Is the seller open to a 22% 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?
• Built in 1957 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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.