1224 2nd St · Key West, FL 33040

$1,700,000

4 bd · 4.0 ba · 3,000 sqft · MultiFamily public records · 49 Days on market

Built 1950 7,000 sqft lot

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Why this score? — see what drove the C- grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +19.1/30.0
• ARV discount +7.5/15.0
• DSCR +6.0/10.0
• Schools +4.6/10.0
• 1% rule +4.1/10.0
• Livability +4.1/5.0
• Rent growth +3.6/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Multi-family units

County records classify this as Multi-Family (2-4 Unit). Listing-text estimate: 4 units. confirmed

Listing remarks

Strong value-add multi-family fourplex investment opportunity with major improvements already completed. The heavy lifting has been done, including a new roof, brand-new windows, and updated concrete throughout, setting the stage for the next owner to bring the project to completion. Once finished and delivered furnished, the property has the potential to generate over $200,000 in annual income across all four units. Additional upside includes the option to condo-convert, with projected rental income of approximately $6,000/month for the lower units and $7,000/month for the upper. An ideal opportunity for an investor looking to step into a project with reduced risk, immediate upside, and st

Key facts

• Updated concrete
• Brand new windows
• New roof

Tags

• NEW ROOF
• BRAND NEW WINDOWS
• UPDATED CONCRETE
• INCOME PRODUCING ASSET

Property features AI

Finance

• HOA & community: No association fees; No HOA services included; No first right of refusal

Exterior

• Utilities: Public sewer hookup (buyer to verify utilities)
• Home design: Other building style; Built in 1950; Metal roof; Combo construction
• Construction: Combo construction; Metal roof; Built in 1950
• Exterior features: No waterfront; No boat dockage; Bay/Gulf side location; Less than 1/4 acre lot; Property in FEMA flood zone AE; Pets allowed; Rentals allowed with restrictions; Deed restrictions unknown

Interior

• Kitchen: Oven
• Bathrooms: 4 full bathrooms
• Interior features: Oven

What this means for you Summary

Snapshot

• This is a 4 × 4-bed/4.0-bath units multifamily listed at $1.70M.

Deal economics

• At list price, monthly cash flow is $1k ($16k/yr) — positive. Per door: $342/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.55M (8.7% below list).
• Recommended offer: $1.55M (8.7% below list) — sets the bar for 1% rule.
• Cap rate 7.6% vs local median 0.8% in Key West — 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.

Location & tenants

• Location reads 82/100 on livability (#65 in FL, #1,123 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, employment A+; Watch: crime D+, cost of living F.
• Monroe (town): math 50% / reading 55% proficiency, ranked #23 of 73 in FL (top 32%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: Rents rising fast (+4.5%/yr); 496 active listings in the ZIP; solid renter incomes; 332 units permitted in Monroe County in 2024 (42 in 5+ unit buildings).
• At $15,523/mo this rent would consume 215% of the median local household income ($87k/yr) (locally 2502% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $12k of loan paydown is wiped out by about $51k of value loss. Plan a longer hold.
• Monroe County population projected at +28% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

Negotiation context

• It's been on market 49 days — a 3% lower offer ($1.65M) is reasonable based on typical stale-listing flexibility.
• Current owner paid $1.00M; list at $1.70M implies a 70% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: flood insurance adds $427/mo; built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance); severe wind risk, 99% chance of damaging wind over 30y — expect insurance premiums to compound above CPI over the hold.

Recommended offer $1,552,300 (8.7% below list)

Questions for the listing agent

1. It's been on market 49 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
2. Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
3. What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
4. Built in 1950 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
5. What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
6. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
7. 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?
8. Crime grade is D 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?
9. 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.
10. 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.
11. 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.

Investment metrics

• 1% rule: 0.91% ✗
• Cap rate: 7.56%
• Cash-on-cash: 4.53%
• DSCR: 1.20
• GRM: 9.1

CMA / ARV

No comps found within radius.

Projected returns pro-forma

-3.0% appreciation · 4.52% rent growth · sell at horizon

5-year hold

• IRR: -9.3%
• Equity multiple: 0.65×
• Total profit: $-164,410
• Equity at exit: $253,476

10-year hold

• IRR: 1.9%
• Equity multiple: 1.15×
• Total profit: $70,013
• Equity at exit: $146,985

Cash invested: $476,000 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 87 Strongly Landlord-Friendly
• State Florida: 87 Strongly Landlord-Friendly · R+3
• County: — inherits STATE
• City: — inherits STATE

3-day pay-or-quit; preempts local rent control; landlord-friendly statutes. Court speed varies by county.

Methodology + full state rankings →

ZIP-level market 33040

• Rents YoY: 4.5%
• Active inventory: 496
• Price-to-rent: 36.5×

Monthly cashflow live

• Estimated rent: $15,523 medium
• Mortgage (P&I): −$8,915
• Tax from tax record: −$843 /mo · $10,120/yr
• Insurance: −$708
• Flood insurance flood zone: −$427 /mo · $5,118/yr
• HOA: −$0
• Vacancy / Maint / Mgmt: −$3,260
• Net cashflow: $1,370

Break-even live

Break-even rent $13,789

Max offer price $1,700,000

Occupancy floor 86%

4-unit breakdown (identical units grouped — click to expand)

Units	Beds	Baths	Est. rent
▸ 4× units	4	4	$15,524
Total (4 units)			$15,523

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $425,000
• Closing costs: $51,000
• Reserves months: —
• Total cash needed: —

Listing history 20 events

1. 2026-06-19
   days on market $1,700,000 Active 49 DOM
2. 2026-06-18
   days on market $1,700,000 Active 48 DOM
3. 2026-06-17
   days on market $1,700,000 Active 47 DOM
4. 2026-06-16
   days on market $1,700,000 Active 46 DOM
5. 2026-06-15
   days on market $1,700,000 Active 45 DOM
6. 2026-06-14
   days on market $1,700,000 Active 43 DOM
7. 2026-06-13
   days on market $1,700,000 Active 42 DOM
8. 2026-06-10
   days on market $1,700,000 Active 40 DOM
9. 2026-06-09
   days on market $1,700,000 Active 39 DOM
10. 2026-06-08
    days on market $1,700,000 Active 38 DOM
11. 2026-06-07
    days on market $1,700,000 Active 37 DOM
12. 2026-06-05
    days on market $1,700,000 Active 34 DOM
13. 2026-06-03
    days on market $1,700,000 Active 33 DOM
14. 2026-06-02
    days on market $1,700,000 Active 32 DOM
15. 2026-06-01
    days on market $1,700,000 Active 31 DOM
16. 2026-05-31
    days on market $1,700,000 Active 30 DOM
17. 2026-05-30
    days on market $1,700,000 Active 29 DOM
18. 2026-05-01
    listed $1,700,000 Active
19. 2022-04-18
    soldstatus $1,000,000
20. 1974-02-01
    soldstatus $28,000

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast FL · Resets to sale price

• Current annual tax: $10,120 · $843/mo
• Projected year-2 tax: $14,110 · $1,176/mo
• Expected delta: +$3,990/yr (+$333/mo · 39.4%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 10/10 Extreme FEMA zone AE · 99% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 💨 Wind 10/10 Extreme 99% chance of damaging wind over 30 yrs
• 🫁 Air quality 1/10 Low 0 unhealthy d/yr today · 0 by 30 yrs out

Taxation est. · year 1

• Rental income: $186,276
• − Mortgage interest: −$95,226
• − Property taxes: −$10,120
• − Insurance: −$13,618
• − Repairs & maintenance: −$14,902
• − Management: −$14,902
• − Depreciation: −$49,455
• Taxable loss: −$11,947
• Est. tax savings @ 24.0%: +$2,867
• After-tax cash flow: $19,307/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Monroe
• NCES district ID: 1201320
• Math proficiency: 50% ▼ -14.00%
• Reading proficiency: 55% ▼ -6.00%
• Median HH income: $56,955
• Composite: 45.51/100
• National rank: #2608
• State rank: #23 of 73 in FL

Livability — Key West

• Score: 82/100
• State rank: #65
• US rank: #1123

Category grades

Amenities A+ Commute A+ Cost of living F Crime D+ Employment A+ Housing B Health & safety A+ User ratings A+

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Key West, FL
• County: Monroe County · 66,185 people
• City population: 35,429
• Metro: Key West, FL
• Population (ZIP): 35,429
• Household income: $86,586
• Rent vs Own: 49.8% rent · 50.2% own
• Severe rent burden: 2502.0

Population outlook (Monroe County) Hauer SSP2

• Today (2025): 90,706 people
• By 2030: 96,308 · +6.2%
• By 2040: 106,565 · +17.5%
• By 2050: 116,500 · +28.4%
• By 2075: 141,423 · +55.9%
• By 2100: 151,947 · +67.5%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Diverse neighborhood (Simpson 0.61)
• Race & ethnicity: White 56% Hispanic / Latino 26% Two or more races 16% Black 12% Asian 2%
• Hispanic origin (detail): Mexican 2% Puerto Rican 2% Cuban 14%
• Common ancestry: Hispanic 6% Romanian 2% Scotch-Irish 2%
• Foreign-born: 22% · Canada, Dominican Republic
• Languages at home: 76% English-only · Spanish 17% French/Haitian/Cajun 2% Russian/Polish/Slavic 2%

Political lean MEDSL · Monroe

• 2024 margin: R (+18.3) · D 40.5% · R 58.8%
• 2008→2024 swing: -23.2pp toward R · 2008: 4.9pp · 2024: -18.3pp
• All cycles: 2024: R+18.3 2020: R+7.9 2016: R+6.9 2012: D+0.4 2008: D+4.9

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -814.48%
• Current HPI: 168.5706
• Rent YoY: ▲ 4.52%
• Metro: Key West, FL
• State GDP YoY: ▲ 3.28%
• F500 in state: 36

Industry mix (Fortune 500 HQ in FL)

Industry	F500 HQs	Revenue
▸Industrial Technology	2	$29B
▸Insurance	2	$17B
▸Retail	1	$60B
▸Technology Distribution	1	$58B
▸Homebuilding	1	$35B
▸Technology Manufacturing	1	$35B

Price history

+5971.4% since first listed

3 events — show timeline

• 2026-05-01 Listed $1,700,000 FLKMLS
• 2022-04-18 Sold (Public Records) $1,000,000 Public Records
• 1974-02-01 Sold (Public Records) $28,000 Public Records

Property tax history

+5.2%/yr

Latest (2025): $10,120 · +5.9% YoY. Source: county tax records.