Silver Springs Plan

Ocala, FL 34476

$174,900F

3 bd · 2.0 ba · 1,356 sqft · Built — · Manufactured · Active · 22 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,341/mo
• Mortgage (P&I): −$2,025
• Tax + insurance: −$644
• HOA: −$0
• Vac / Maint / Mgmt: −$282
• Net cashflow: $-1,609/mo
• Annual: $-19,310/yr
• Cap rate: 1.29%
• Cash-on-cash: -17.86%
• DSCR: 0.21
• 1% rule: 0.35%
• Cash to close: $108,109

Investor read

• This is a 3-bed/2.0-bath manufactured listed at $175k. Condition is rated excellent.
• At list price, monthly cash flow is $-2k ($-19k/yr) — negative.
• To cash-flow at today's rent, offer at most $153k (12.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $134k (23.4% below list).
• It's been on market 22 days — a 2% lower offer ($172k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $134k (23.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $12k of value loss. Plan a longer hold.
• Location reads 69/100 on livability (#476 in FL) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: crime F, amenities F, commute F.
• Marion (rural): math 42% / reading 43% proficiency, ranked #61 of 73 in FL (top 84%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 61% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Hammett Bowen Jr. Elementary School (math 56% / reading 56%, grade C+, #832 of 2,144 statewide, top 40%, 867 students, 54% FRL); Liberty Middle School (math 40% / reading 41%, grade F, #360 of 571 statewide, top 64%, 1,365 students, 54% FRL); West Port High School (math 34% / reading 52%, grade F, #255 of 667 statewide, top 39%, 2,906 students, 52% FRL).
• Watch-outs: property tax is 3.3% of price.
• Market conditions: Rents soft (-2.6%/yr); 1194 active listings in the ZIP; 9 comparable units currently listed for rent nearby; rentals lingering (median 110d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 67% of comp listings sitting > 30 days — soft ceiling on asking rent; 7,071 units permitted in Marion County in 2024 (534 in 5+ unit buildings).
• Marion County population projected at +13% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Climate carrying-cost: severe wind risk, 99% chance of damaging wind over 30y; extreme-heat days projected 5→16/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 1.3% vs local median 4.2% in Ocala — 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?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.
• 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 for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.