2255 SE 5th St · Pompano Beach, FL 33062

$1,995,000

10 bd · 10.0 ba · 5,528 sqft · MultiFamily public records · 10 Days on market

Built 1970

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Why this score? — see what drove the C- 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 +20.3/30.0
• ARV discount +7.5/15.0
• DSCR +6.4/10.0
• 1% rule +5.7/10.0
• Schools +4.1/10.0
• Livability +3.7/5.0
• Condition / age +2.5/5.0
• Rent growth +2.4/5.0
• Appreciation +0.0/10.0

Multi-family units

County records classify this as Multi-Family (5+ Unit). Listing-text estimate: 10 units. confirmed

5+ unit building — per-unit beds/baths from public records are typically unavailable; the breakdown below (if shown) is an estimate from the listing text.

Listing remarks

Fausto Commercial is pleased to present 2255 SE 5th Street, a 10-unit multifamily investment opportunity in the highly desirable Southeast Pompano Beach submarket. Located east of Federal Highway and minutes from the beach, Pompano Beach Pier, dining, entertainment, and retail destinations, the property benefits from strong rental demand and excellent accessibility. The property consists of 10 renovated one-bedroom, one-bathroom units within a well-maintained concrete building totaling approximately 5,880 SF. Units feature updated interiors and central air conditioning, and residents have access to an on-site coin laundry facility. The asset currently generates $209,880 in gross annual inco

Key facts

• Pompano beach pier
• Updated interiors
• 11 parking spots

Tags

• MINUTES FROM THE BEACH
• POMPANO BEACH PIER
• ON-SITE COIN LAUNDRY FACILITY
• RENOVATED ONE-BEDROOM UNITS
• UPDATED INTERIORS
• CENTRAL AIR CONDITIONING

Property features AI

Finance

• Financial info: Total actual rent reported at $209,880; Operating expenses reported at $64,525; Example unit actual rent listed at $17,490; Multifamily income/expense information provided

Exterior

• Parking: Total of 11 parking spaces; Parking spaces associated with units
• Utilities: Cable available; Public sewer
• Home design: 2-story building; Block construction; Effective year built reported
• Construction: Block construction
• Exterior features: Less than quarter-acre lot; Zoned RM-20

Interior

• Bedrooms: Ten 1-bedroom units
• Flooring: Tile
• Bathrooms: Each 1-bedroom unit includes one full bathroom
• Heating & cooling: Central heating; Central air conditioning
• Interior features: Tile flooring

What this means for you Summary

Snapshot

• This is a 10 × 1-bed/1.0-bath units multifamily listed at $2.00M.

Deal economics

• At list price, monthly cash flow is $3k ($30k/yr) — positive. Per door: $254/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($21k rent vs $2.00M).
• Cap rate 7.8% vs local median 3.1% in Pompano Beach — 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 74/100 on livability (#284 in FL, #4,541 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, housing A+, cost of living B+; Watch: schools D+, employment D+, amenities F.
• Broward (suburban): math 42% / reading 53% proficiency, ranked #46 of 73 in FL (top 63%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: Rents soft (-0.4%/yr); 843 active listings in the ZIP; solid renter incomes; 2,111 units permitted in Broward County in 2024 (1,265 in 5+ unit buildings).
• At $21,389/mo this rent would consume 307% of the median local household income ($84k/yr) (locally 1298% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $14k of loan paydown is wiped out by about $60k of value loss. Plan a longer hold.
• Broward County population projected at +34% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

Negotiation context

• Only 10 days on market — expect competitive offers; lowballing is unlikely to land.
• 2 sale attempts since 9y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $1.48M; 35% above their basis — modest negotiation headroom, anchor on the comps not their cost.

Risks & watch-outs

• Climate carrying-cost: 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 $1,995,000

Questions for the listing agent

1. Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
2. What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
3. Built in 1970 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
6. 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.
7. 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.
8. How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

• 1% rule: 1.07% ✓
• Cap rate: 7.82%
• Cash-on-cash: 5.46%
• DSCR: 1.24
• GRM: 7.8

CMA / ARV

No comps found within radius.

Projected returns pro-forma

-3.0% appreciation · 0.0% rent growth · sell at horizon

5-year hold

• IRR: -11.4%
• Equity multiple: 0.60×
• Total profit: $-223,490
• Equity at exit: $297,461

10-year hold

• IRR: -7.4%
• Equity multiple: 0.60×
• Total profit: $-225,785
• Equity at exit: $172,491

Cash invested: $558,600 (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 33062

• Rents YoY: -0.4%
• Active inventory: 843
• Price-to-rent: 77.7×

Monthly cashflow live

• Estimated rent: $21,389 high
• Mortgage (P&I): −$10,462
• Tax from tax record: −$3,064 /mo · $36,765/yr
• Insurance: −$831
• HOA: −$0
• Vacancy / Maint / Mgmt: −$4,492
• Net cashflow: $2,540

Break-even live

Break-even rent $18,173

Max offer price $1,995,000

Occupancy floor 83%

10-unit breakdown (identical units grouped — click to expand)

Units	Beds	Baths	Est. rent
▸ 10× units	1	1	$21,390
Total (10 units)			$21,389

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: $498,750
• Closing costs: $59,850
• Reserves months: —
• Total cash needed: —

Listing history 7 events

1. 2026-06-16
   days on market $1,995,000 Active 10 DOM
2. 2026-06-15
   days on market $1,995,000 Active 9 DOM
3. 2026-06-13
   days on market $1,995,000 Active 7 DOM
4. 2026-06-09
   days on market $1,995,000 Active 3 DOM
5. 2026-06-08
   days on market $1,995,000 Active 2 DOM
6. 2026-06-07
   remarks 699-char remark
7. 2026-06-07
   listed $1,995,000 Active 1 DOM

ⓘ 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: $36,765 · $3,064/mo
• Projected year-2 tax: $36,765 · $3,064/mo
• Expected delta: $0/yr ($0/mo · 0.0%)

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

Climate risk First Street

• 🌊 Flood 4/10 Moderate FEMA zone X (shaded) · 21% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 10/10 Extreme 7 d/yr ≥106°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 · 2 by 30 yrs out

Taxation est. · year 1

• Rental income: $256,668
• − Mortgage interest: −$111,751
• − Property taxes: −$36,765
• − Insurance: −$9,975
• − Repairs & maintenance: −$20,533
• − Management: −$20,533
• − Depreciation: −$58,036
• Taxable loss: −$926
• Est. tax savings @ 24.0%: +$222
• After-tax cash flow: $30,706/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: Broward
• NCES district ID: 1200180
• Math proficiency: 42% ▼ -18.00%
• Reading proficiency: 53% ▼ -5.00%
• Median HH income: $52,139
• Composite: 40.88/100
• National rank: #3621
• State rank: #46 of 73 in FL

Livability — Pompano Beach

• Score: 74/100
• State rank: #284
• US rank: #4541

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Pompano Beach, FL
• County: Broward County · 1,963,430 people
• City population: 155,861
• Metro: Miami-Fort Lauderdale-Pompano Beach, FL
• Population (ZIP): 24,920
• Household income: $83,582
• Rent vs Own: 31.1% rent · 68.9% own
• Severe rent burden: 1298.0

Population outlook (Broward County) Hauer SSP2

• Today (2025): 2,207,033 people
• By 2030: 2,360,704 · +7.0%
• By 2040: 2,661,208 · +20.6%
• By 2050: 2,946,698 · +33.5%
• By 2075: 3,602,273 · +63.2%
• By 2100: 3,970,984 · +79.9%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (76%)
• Race & ethnicity: White 76% Hispanic / Latino 16% Two or more races 12% Black 3%
• Hispanic origin (detail): Puerto Rican 4% Cuban 3%
• Common ancestry: Romanian 4% Italian 3% Scotch-Irish 2%
• Foreign-born: 22% · Canada, Jamaica, Dominican Republic
• Languages at home: 74% English-only · Spanish 14% Other Indo-European 4% Russian/Polish/Slavic 2%

Political lean MEDSL · Broward

• 2024 margin: D (+17.0) · D 58.0% · R 41.0%
• 2008→2024 swing: -17.8pp toward R · 2008: 34.7pp · 2024: 17.0pp
• All cycles: 2024: D+17.0 2020: D+29.8 2016: D+35.0 2012: D+34.9 2008: D+34.7

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -427.01%
• Current HPI: 342.9461
• Rent YoY: ▼ -0.36%
• Metro: Miami-Fort Lauderdale-Pompano Beach, FL
• 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

+1127.7% since first listed

8 events — show timeline

• 2026-06-07 Listed $1,995,000 MARMLS
• 2021-06-03 Sold (Public Records) $1,475,000 Public Records
• 2018-01-27 Listing Removed — Beaches MLS
• 2017-10-12 Listed $2,000,000 Beaches MLS
• 2011-11-08 Sold (Public Records) $575,000 Public Records
• 2004-10-11 Sold (Public Records) $850,000 Public Records
• 1999-02-09 Sold (Public Records) $335,000 Public Records
• 1974-09-01 Sold (Public Records) $162,500 Public Records

Property tax history

+9.2%/yr

Latest (2025): $36,765 · +10.5% YoY. Source: county tax records.