9090 Salem Rd

Saint Cloud, FL 34773

$185,000A-

5 bd · 2.0 ba · 2,356 sqft · Built 2003 · Manufactured · Pending · 24 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,940/mo
• Mortgage (P&I): −$970
• Tax + insurance: −$539
• HOA: −$0
• Vac / Maint / Mgmt: −$617
• Net cashflow: $813/mo
• Annual: $9,757/yr
• Cap rate: 11.57%
• Cash-on-cash: 18.84%
• DSCR: 1.84
• 1% rule: 1.59%
• Cash to close: $51,800

Investor read

• This is a 5-bed/2.0-bath manufactured listed at $185k.
• At list price, monthly cash flow is $813 ($10k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $185k).
• It's been on market 24 days — a 2% lower offer ($182k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $182k (1.5% below list) — sets the bar for market timing.
• In year one you build about $416 of equity ($1k loan paydown + $-863 appreciation (-0.5% local appreciation)).
• Location reads: area grade A — affects rentability + tenant quality, not the cash-flow math above.
• Osceola (suburban): math 39% / reading 45% proficiency, ranked #60 of 73 in FL (top 82%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 60% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Harmony Community School (math 70% / reading 64%, grade B+, #450 of 2,144 statewide, top 22%, 1,012 students, 38% FRL) — zoned schools average 38% FRL vs 60% district-wide (22 pts lower); this property's tenant base skews higher-income than the district average.
• Zoned-school proficiency averages 67% at this address vs 42% district-wide (+25 pts) — the actual schools serving this property are materially stronger than the Osceola average implies; a family-tenant draw the district grade alone would hide.
• Watch-outs: property tax is 3.0% of price.
• Market conditions: Rents rising (+1.8%/yr); 383 active listings in the ZIP; solid renter incomes; 8,813 units permitted in Osceola County in 2024 (3,072 in 5+ unit buildings).
• Osceola County population projected at +73% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 13 sale attempts since 21y ago; this cycle's ask has dropped $70k (27%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (-0.5% appreciation + 1.8% rent growth), your $52k cash investment doubles in ~5 years — after that, you're playing with house money.
• Climate carrying-cost: severe wind risk, 99% chance of damaging wind over 30y; major wildfire risk; extreme-heat days projected 7→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• This rent runs 44% of the median local income ($81k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.
• 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.
• 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.