721 Foster Ave

Winter Garden, FL 34787

$699,000D

5 bd · 3.0 ba · 2,197 sqft · Built 1960 · MultiFamily · Active · 104 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,789/mo
• Mortgage (P&I): −$3,666
• Tax + insurance: −$920
• HOA: −$0
• Vac / Maint / Mgmt: −$1,216
• Net cashflow: $-13/mo
• Annual: $-153/yr
• Cap rate: 6.27%
• Cash-on-cash: -0.08%
• DSCR: 1.00
• 1% rule: 0.83%
• Cash to close: $195,720

Investor read

• This is a 3 × 2-bed/1.0-bath units multifamily listed at $699k.
• At list price, monthly cash flow is $-13 ($-153/yr) — negative. Per door: $-4/mo.
• To cash-flow at today's rent, offer at most $697k (0.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $579k (17.2% below list).
• It's been on market 104 days — a 9% lower offer ($636k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $579k (17.2% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $21k of value loss. Plan a longer hold.
• Location reads 84/100 on livability (#41 in FL, #804 nationally) — a professional / high-income tenant draw. Strengths: crime A+, housing A+, health & safety A+; Watch: cost of living C-, amenities F.
• Orange (suburban): math 46% / reading 51% proficiency, ranked #43 of 73 in FL (top 59%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: Rents rising (+1.1%/yr); 1581 active listings in the ZIP; 1 comparable units currently listed for rent nearby; high-income renter base; 8,053 units permitted in Orange County in 2024 (3,133 in 5+ unit buildings).
• Orange County population projected at +52% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 8 sale attempts since 21y ago; this cycle's ask has dropped $51k (7%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $272k; list at $699k implies a 157% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 7→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.3% vs local median 2.9% in Winter Garden — 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 $5,789/mo this rent would consume 58% of the median local household income ($120k/yr) (locally 2682% 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 104 days. Have you received any prior offers? Is the seller open to a 17% 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 1960 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?