901 Pennsylvania Ave

Miami Beach, FL 33139

$3,450,000B

None bd · None ba · — sqft · Built 1948 · MultiFamily · Active · 69 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $102,634/mo
• Mortgage (P&I): −$18,092
• Tax + insurance: −$5,750
• HOA: −$0
• Vac / Maint / Mgmt: −$21,553
• Net cashflow: $57,239/mo
• Annual: $686,864/yr
• Cap rate: 26.20%
• Cash-on-cash: 71.10%
• DSCR: 4.16
• 1% rule: 2.97%
• Cash to close: $966,000

Investor read

• This is a multifamily listed at $3.45M.
• At list price, monthly cash flow is $57k ($687k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($103k rent vs $3.45M).
• It's been on market 69 days — a 6% lower offer ($3.24M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $3.24M (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-2.2%/yr); year-one equity from $24k of loan paydown is wiped out by about $75k of value loss. Plan a longer hold.
• Location reads 80/100 on livability (#108 in FL, #1,672 nationally) — a professional / high-income tenant draw. Strengths: crime A+, commute A+, health & safety A+; Watch: housing C-, amenities D-, cost of living F.
• Miami-Dade (suburban): math 45% / reading 54% proficiency, ranked #40 of 73 in FL (top 55%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 64% free/reduced lunch — lower-income household profile, screen leases tightly.
• Watch-outs: built in 1948 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents soft (-0.4%/yr); 1208 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals at typical pace (median 22d on market — plan ~3-4 weeks tenant-placement turnaround); 10,051 units permitted in Miami-Dade County in 2024 (7,758 in 5+ unit buildings).
• Miami-Dade County population projected at +28% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 4 sale attempts since 8y ago; this cycle's ask is 192101% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• At projected returns (-2.2% appreciation + 0.0% rent growth), your $966k cash investment doubles in ~2 years — after that, you're playing with house money.
• Cap rate 26.2% vs local median 1.5% in Miami 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.
• At $102,634/mo this rent would consume 1765% of the median local household income ($70k/yr) (locally 4052% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 69 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Built in 1948 — 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 A-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?
• 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.
• 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.
• 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.