1021 NW 242nd Dr

Newberry, FL 32669

$301,990D

3 bd · 2.0 ba · 1,619 sqft · Built 2026 · SingleFamily · Pending · 65 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,647/mo
• Mortgage (P&I): −$1,584
• Tax + insurance: −$503
• HOA: −$100
• Vac / Maint / Mgmt: −$556
• Net cashflow: $-96/mo
• Annual: $-1,150/yr
• Cap rate: 5.91%
• Cash-on-cash: -1.36%
• DSCR: 0.94
• 1% rule: 0.88%
• Cash to close: $84,557

Investor read

• This is a 3-bed/2.0-bath single-family listed at $302k. Condition is rated good.
• At list price, monthly cash flow is $-96 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $288k (4.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $265k (12.3% below list).
• It's been on market 65 days — a 6% lower offer ($284k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $265k (12.3% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $9k of value loss. Plan a longer hold.
• Location reads 68/100 on livability (#524 in FL) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A-; Watch: health & safety D, amenities F, commute F.
• Alachua (urban): math 49% / reading 54% proficiency, ranked #30 of 73 in FL (top 41%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Newberry Elementary School (math 43% / reading 48%, grade D-, #1,247 of 2,144 statewide, top 59%, 661 students, 44% FRL); Oak View Middle School (math 58% / reading 59%, grade B, #148 of 571 statewide, top 26%, 964 students, 49% FRL); Newberry High School (math 35% / reading 54%, grade F, #237 of 667 statewide, top 36%, 728 students, 50% FRL) — zoned schools at 48% FRL track the district average.
• Market conditions: Rents rising (+3.6%/yr); 420 active listings in the ZIP; 2 comparable units currently listed for rent nearby; solid renter incomes; 1,774 units permitted in Alachua County in 2024 (984 in 5+ unit buildings).
• Alachua County population projected at +26% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 5.9% vs local median 4.0% in Newberry — 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.
• This rent runs 32% of the median local income ($100k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 65 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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?
• 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?
• 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.