4 bd · 4.0 ba ·
2,442 sqft ·
Built 2009
· MultiFamily
· Active
· 106 DOM
Cashflow @ list (25.0% down · 7.5%)
Estimated rent
$3,557/mo
Mortgage (P&I)
−$2,229
Tax + insurance
−$596
HOA
−$0
Vac / Maint / Mgmt
−$747
Net cashflow
$-15/mo
Annual
$-176/yr
Cap rate
6.25%
Cash-on-cash
-0.15%
DSCR
0.99
1% rule
0.84%
Cash to close
$119,000
Investor read
This is a 2 × 3-bed/2.0-bath units multifamily listed at $425k.
At list price, monthly cash flow is $-15 ($-176/yr) — negative. Per door: $-7/mo.
To cash-flow at today's rent, offer at most $422k (0.6% below list).
To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $356k (16.3% below list).
It's been on market 106 days — a 9% lower offer ($387k) is reasonable based on typical stale-listing flexibility.
Recommended offer: $356k (16.3% below list) — sets the bar for 1% rule.
In year one you build about $45k of equity ($3k loan paydown + $42k appreciation (10.0% local appreciation)).
Location reads 59/100 on livability (#826 in FL) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: crime C-, employment D+, schools D-.
Lee (suburban): math 47% / reading 50% proficiency, ranked #42 of 73 in FL (top 58%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
Market conditions: Rents falling (-4.7%/yr); 2460 active listings in the ZIP; 23 comparable units currently listed for rent nearby; rentals at typical pace (median 22d on market — plan ~3-4 weeks tenant-placement turnaround); 15,411 units permitted in Lee County in 2024 (4,686 in 5+ unit buildings).
Lee County population projected at +44% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
Current owner paid $113k; list at $425k implies a 276% gain — meaningful room to come down on a strong offer.
At projected returns (10.0% appreciation + 0.0% rent growth), your $119k cash investment doubles in ~3 years — after that, you're playing with house money.
By year 2, paydown + projected appreciation supports a ~$73k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
Climate carrying-cost: severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 7→27/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
Cap rate 6.3% vs local median 4.7% in Lehigh Acres — 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 $3,557/mo this rent would consume 59% of the median local household income ($72k/yr) (locally 434% 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 106 days. Have you received any prior offers? Is the seller open to a 16% 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?
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 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?
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?
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· Data 1 week agocashflowre.app · 2026-05-29