18114 Gawthrop Dr #204

Lakewood Ranch, FL 34211

$279,000F

2 bd · 2.0 ba · 1,121 sqft · Built 2022 · Condo · Active · 176 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,612/mo
• Mortgage (P&I): −$1,463
• Tax + insurance: −$606
• HOA: −$1,250
• Vac / Maint / Mgmt: −$549
• Net cashflow: $-1,256/mo
• Annual: $-15,068/yr
• Cap rate: 0.89%
• Cash-on-cash: -19.29%
• DSCR: 0.14
• 1% rule: 0.94%
• Cash to close: $78,120

Investor read

• This is a 2-bed/2.0-bath condo listed at $279k. Condition is rated good.
• At list price, monthly cash flow is $-1k ($-15k/yr) — negative.
• To cash-flow at today's rent, offer at most $118k (57.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $261k (6.4% below list).
• It's been on market 176 days — a 12% lower offer ($246k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $118k (57.9% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads: area grade F — affects rentability + tenant quality, not the cash-flow math above.
• Manatee (suburban): math 54% / reading 50% proficiency, ranked #26 of 73 in FL (top 36%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: B.D. Gullett Elementary School (math 78% / reading 73%, grade A, #211 of 2,144 statewide, top 10%, 1,121 students, 20% FRL); R. Dan Nolan Middle School (math 79% / reading 72%, grade A, #38 of 571 statewide, top 7%, 760 students, 28% FRL); Lakewood Ranch High School (math 47% / reading 63%, grade C, #135 of 667 statewide, top 20%, 2,435 students, 22% FRL) — zoned schools average 23% FRL vs 51% district-wide (27 pts lower); this property's tenant base skews higher-income than the district average.
• Zoned-school proficiency averages 69% at this address vs 52% district-wide (+17 pts) — the actual schools serving this property are materially stronger than the Manatee average implies; a family-tenant draw the district grade alone would hide.
• Watch-outs: HOA is 48% of rent.
• Market conditions: Rents falling (-5.2%/yr); 1553 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals lingering (median 98d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 70% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 7,472 units permitted in Manatee County in 2024 (1,782 in 5+ unit buildings).
• Manatee County population projected at +43% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 3 sale attempts since 3y ago; this cycle's ask has dropped $16k (5%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Climate carrying-cost: severe wind risk, 99% chance of damaging wind over 30y; moderate wildfire risk; extreme-heat days projected 7→28/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 0.9% vs local median 2.9% in Lakewood Ranch — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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 176 days. Have you received any prior offers? Is the seller open to a 58% 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?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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.
• 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.