721 N Osprey Ave

Sarasota, FL 34236

$639,800D

4 bd · 2.0 ba · 1,484 sqft · Built 1973 · MultiFamily · Active · 239 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,741/mo
• Mortgage (P&I): −$3,355
• Tax + insurance: −$810
• HOA: −$0
• Vac / Maint / Mgmt: −$996
• Net cashflow: $-420/mo
• Annual: $-5,035/yr
• Cap rate: 5.51%
• Cash-on-cash: -2.81%
• DSCR: 0.87
• 1% rule: 0.74%
• Cash to close: $179,144

Investor read

• This is a 2 × 2-bed/1.0-bath units multifamily listed at $640k.
• At list price, monthly cash flow is $-420 ($-5k/yr) — negative. Per door: $-210/mo.
• To cash-flow at today's rent, offer at most $566k (11.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $474k (25.9% below list).
• It's been on market 239 days — a 12% lower offer ($563k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $474k (25.9% below list) — sets the bar for 1% rule.
• In year one you build about $17k of equity ($4k loan paydown + $12k appreciation (1.9% local appreciation)).
• Location reads 80/100 on livability (#121 in FL, #1,854 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, health & safety A+, commute A; Watch: crime F.
• Sarasota (urban): math 63% / reading 63% proficiency, ranked #7 of 73 in FL (top 10%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: Rents falling (-5.1%/yr); 731 active listings in the ZIP; solid renter incomes; 7,466 units permitted in Sarasota County in 2024 (2,138 in 5+ unit buildings).
• Sarasota County population projected at +20% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts; this cycle's ask is 33574% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $350k; list at $640k implies a 83% gain — meaningful room to come down on a strong offer.
• By year 3, paydown + projected appreciation supports a ~$42k 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→31/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• At $4,741/mo this rent would consume 59% of the median local household income ($96k/yr) (locally 927% 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 239 days. Have you received any prior offers? Is the seller open to a 26% 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 1973 — 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?