Future Florida Multi-Unit Investor Looking to Connect
Member since 2026 · 16 posts · 8 votes
Future Florida Multi-Unit Investor Looking to Connect
Most Popular Reply
Member since 2021 · 81 posts · 79 votes
7mo@Dineen Garcia — Your math is right. Both scenarios are negative because at 7% interest with 20% down, your breakeven cap rate is 6.38%.
Anything below that is underwater before vacancy. The $599K listing at 4.3% cap and your $429K target at 6% cap both fall short.
But there's a play here. Those units are $850/unit below market rent. Negotiate to ~$450K, invest $35K in cosmetic reno, raise rents to $2,600.
That gets you to positive cash flow now and 6%+ CoC when rates compress. That's how experienced FL investors are playing this cycle — buy the
value-add at a discount, survive thin margins, refi later.
Now your questions:
1. How does this make sense?
It doesn't — at asking price. The seller bought at $325K in 2020 when rates were 3% and is anchored to appreciation gains. At 3%, this deal
works beautifully. At 7%, it's underwater. The market agrees with your spreadsheet. That's exactly why it's sitting unsold.
The right question is: at what price does it START to work? For this property with value-add to $2,600 rents, that's roughly $420-$460K.
2. Is there a quicker way to assess?
Yes. Three filters, 60 seconds, before you ever open your spreadsheet:
- GRM (price ÷ annual gross rent) — above 11, walk. This listing: 12.8. Instant no.
- 50% Rule — half of gross covers the mortgage? $1,950 vs $3,188. Dead.
- Cap rate vs 6.4% — below that at today's rates means no cash flow with conventional financing. This alone eliminates 80% of listed Palm Beach
County properties.
If a deal fails any one of these, don't waste 15 minutes on a full workup.
3. Should I invest in an investor app?
Not yet. Your spreadsheet is fine — the bottleneck isn't analysis speed. You can underwrite a deal in 15 minutes. The problem is 95% of what's
listed in South Florida doesn't work. Getting faster at saying no doesn't find you a yes.
What will actually move the needle: PropStream ($99/mo) for off-market leads, pre-foreclosures, and motivated sellers. Palm Beach County
property appraiser website (free) for real tax numbers and sale history. RentCast or Rentometer (free tier) to verify market rents before
trusting a listing broker's pro forma.
The deal source is what needs upgrading, not the calculator.
4. Am I looking for a unicorn?
No — but you're fishing in the wrong pond. A 10% CoC on a listed duplex in Palm Beach County at 7% rates does not exist on the MLS. The math
proves it. To get there you need one of these:
- Off-market at 15-25% below retail
- Value-add with rent upside like this property
- Creative financing — seller finance at 4-5%, or subject-to the seller's existing low-rate mortgage
- House hack — which you're already planning and is genuinely the fastest path to 10%+ effective CoC
Your analysis skills are already sharp. Deal sourcing is the next level.
One last thing — get a real insurance quote before underwriting anything in 33460. Wind zone, ~3,800 SF duplex, you're looking at $5K-$8K/yr.
Pre-2017 roof and some carriers won't even write it. Check flood zone too. Insurance is breaking more Florida deals than cap rates right now.
Nicholas
33 Replies
- 7moJorge VazquezBusiness MemberReal Estate Broker · Tampa, FL · Member since 2017 · 1k+ posts · 684 votes
Dineen, I like the plan. I’m in Tampa and have been investing in Florida for over 20 years, and I own multiple units right now, including small multifamily, so I’ve lived through a few cycles here. Duplex to quad is a great way to build long term wealth if the numbers make sense on today’s rates and insurance, not just best case scenarios. I’d really focus on buying for solid fundamentals and tenant quality over just chasing the “hottest” area. Happy to connect and compare assumptions since I’m active in the Florida market as well. What kind of cash on cash return are you aiming for?
Graystone Investment Group4.6271 Reviews - 7moJonathan LeeBusiness MemberLender · FL · Member since 2025 · 86 posts · 30 votes
Hi Dineen,
I’m a mortgage broker based in Miami, FL and also a part-time real estate investor. I actually just completed building a triplex in Northern Florida that I am keeping as a rental.
Treasure Coast and Palm Beach County have strong long-term fundamentals, especially if you’re paying close attention to insurance costs and property taxes. Areas south of Tampa can also offer solid cash flow potential when you buy at the right price and the numbers make sense.
Happy to connect and compare deal assumptions or walk through financing structures for 2–4 units in those areas.
Helm Mortgage Corp.5126 Reviews - Member since 2026 · 16 posts · 8 votes7mo
@Jorge Vazquez Thank you for your message. A pleasure to connect. Appreciate your initial assessment on my chosen markets. They are identified as growth markets, with duplex-quad inventory, and positive cash flow unlike Miami. My research tells me that Lake Worth Beach cap rate is 6-7% and Fort Pierce is 7-8%. Goal is at least 10% CoC.
Is this in line with your experience?
Thanks again.
- Member since 2026 · 16 posts · 8 votes7mo
@Jonathan Lee Thanks for your outreach and congratulations on your triplex! I've been underwriting conservatively exactly because insurance and property taxes are such an issue here in Florida.
I'd like to connect and compare deal assumptions and financing options. I'll reach out.
Thanks
- 7moJonathan LeeBusiness MemberLender · FL · Member since 2025 · 86 posts · 30 votes
@Dineen Garcia sounds good, looking forward to connecting!
Helm Mortgage Corp.5126 Reviews
- Developer · Palm City, FL · Member since 2018 · 326 posts · 99 votes7mo
@Dineen Garcia I am in the treasure coast, feel free to reach out.
- Member since 2026 · 16 posts · 8 votes7mo
Quote from @Jordan Ray:
@Dineen Garcia I am in the treasure coast, feel free to reach out.
Thank you Jordan. Appreciate your outreach.
- 7moArman AhmedPro MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 917 votes
Quote from @Dineen Garcia:
Hi everyone,
I’m based in Miami, Florida and working toward purchasing a duplex–quadplex property in growth Florida markets on the Treasure Coast, Palm Beach County and parts of the Gulf Coast (south of Tampa).
My goal is a long-term-buy-and-hold property with solid fundamentals and sustainable cash flow.
I’m especially interested in connecting with Florida-based investors with local experience, but I’d also value input from investors in other markets who have experience with small multi-family and long-term buy-and-hold strategies.
I’m hoping to connect with investors who are open to:
-
- Sharing market perspective
-
- Comparing deal assumptions
-
- Possibly meeting in person if local
I’m serious about making a purchase within the next 3-6 months and appreciate learning from people who have gone through the process.
If you're open to connecting, feel free to reach out.
Thank you!
Dineen
Love the plan and timeline, and you’re thinking about this the right way by focusing on fundamentals and steady cash flow instead of hype. Florida can work, but prices and insurance can really squeeze returns, which is why a lot of buy-and-hold investors I know also look out of state in the Midwest, where the numbers are simpler and more predictable. The Midwest market still has duplexes and small multis at much lower price points that cash flow day one with solid third-party management, which makes scaling a lot easier. Even if you stick with Florida, it’s worth comparing a few Midwest deals side by side just to see how far your capital can stretch.
- Member since 2026 · 16 posts · 8 votes7mo
Quote from @Arman Ahmed:
Quote from @Dineen Garcia:
Hi everyone,
I’m based in Miami, Florida and working toward purchasing a duplex–quadplex property in growth Florida markets on the Treasure Coast, Palm Beach County and parts of the Gulf Coast (south of Tampa).
My goal is a long-term-buy-and-hold property with solid fundamentals and sustainable cash flow.
I’m especially interested in connecting with Florida-based investors with local experience, but I’d also value input from investors in other markets who have experience with small multi-family and long-term buy-and-hold strategies.
I’m hoping to connect with investors who are open to:
-
- Sharing market perspective
-
- Comparing deal assumptions
-
- Possibly meeting in person if local
I’m serious about making a purchase within the next 3-6 months and appreciate learning from people who have gone through the process.
If you're open to connecting, feel free to reach out.
Thank you!
Dineen
Love the plan and timeline, and you’re thinking about this the right way by focusing on fundamentals and steady cash flow instead of hype. Florida can work, but prices and insurance can really squeeze returns, which is why a lot of buy-and-hold investors I know also look out of state in the Midwest, where the numbers are simpler and more predictable. The Midwest market still has duplexes and small multis at much lower price points that cash flow day one with solid third-party management, which makes scaling a lot easier. Even if you stick with Florida, it’s worth comparing a few Midwest deals side by side just to see how far your capital can stretch.
@Arman Ahmed. Thank you for your outreach and insight. For my first deal I'm inclined to stay in my back yard, hopefully learn the ropes and be more tactile in the process. I'm not against investing OOS and welcome the opportunity to compare Midwest properties vs. S. Fl. so I can see the value of diversifying the portfolio. I know this is a more challenging market in some ways due to insurance and property taxes and slimmer cash flow margins...so am hoping the initial uphill battle will make it a bit smoother when I consider other markets. Thanks again.
-
-
- Member since 2021 · 81 posts · 79 votes7mo
@Dineen Garcia — good plan, and the fact that you're targeting 10% CoC and underwriting conservatively puts you ahead of most first-time multi-family buyers. A few things nobody in this thread has mentioned
yet that will make or break your deal in those specific markets:
The insurance math is the deal.
Forget cap rates for a second. In Florida small multi-family right now, insurance is the variable that turns a good deal into a bad one overnight. Treasure Coast and Palm Beach are in the wind zone — you're
looking at $3,500-6,000/yr on a duplex, and that's IF you can get coverage. Citizens (state insurer of last resort) has been non-renewing policies and private carriers have been exiting Florida since 2023.
Before you underwrite any deal, get an actual insurance quote on the specific property. Not an estimate — an actual quote. I've seen deals where insurance alone ate 25% of gross rent.
Your 10% CoC target at today's rates requires a specific price band.
Let me back into the math. Say you find a duplex pulling $2,400/mo gross rent ($1,200/side) in Fort Pierce. At 7.5% rate on a conventional 25% down:
- Purchase price: $250K
- Down: $62,500
- PITI: ~$1,650/mo (mortgage $1,310 + taxes $350 + insurance $400)
- PM at 8%: $192
- Vacancy 5%: $120
- Maintenance 5%: $120
- Net cash flow: ~$318/mo = $3,816/yr
- CoC: 6.1%
To hit 10% CoC at those rates, you need to buy at ~$200K for that same $2,400 rent, or find a property renting at $2,800+ at $250K. That narrows your search significantly. Run this math on every deal before
you even drive by it.
What nobody told you about Fort Pierce vs. Lake Worth Beach:
Fort Pierce has better cap rates on paper (7-8% like you said) but the tenant pool is thinner and turnover is higher. Lake Worth has lower caps (6-7%) but stronger tenant demand, lower vacancy, and better
appreciation trajectory because of Palm Beach County spillover. The question is whether you're optimizing for cash flow today or total return over 10 years. For buy-and-hold, I'd lean Lake Worth — you'll
sacrifice 1% cap rate but gain in appreciation and lower vacancy drag.
One tactical move that saves most first-time Florida investors:
Get your property tax exemption strategy figured out BEFORE you close. Florida homestead exemption doesn't apply to investment property, but if you house hack (live in one unit of the duplex), you can homestead your unit and save $1,500-2,500/yr in taxes. On a deal this size, that's the difference between 8% CoC and 10% CoC.
Happy to compare deal assumptions — I work across real estate and property management tech and these Florida markets specifically.
- Member since 2026 · 16 posts · 8 votes7mo
Quote from @Nicholas Cokas:
@Dineen Garcia — good plan, and the fact that you're targeting 10% CoC and underwriting conservatively puts you ahead of most first-time multi-family buyers. A few things nobody in this thread has mentioned
yet that will make or break your deal in those specific markets:
The insurance math is the deal.
Forget cap rates for a second. In Florida small multi-family right now, insurance is the variable that turns a good deal into a bad one overnight. Treasure Coast and Palm Beach are in the wind zone — you're
looking at $3,500-6,000/yr on a duplex, and that's IF you can get coverage. Citizens (state insurer of last resort) has been non-renewing policies and private carriers have been exiting Florida since 2023.
Before you underwrite any deal, get an actual insurance quote on the specific property. Not an estimate — an actual quote. I've seen deals where insurance alone ate 25% of gross rent.
Your 10% CoC target at today's rates requires a specific price band.
Let me back into the math. Say you find a duplex pulling $2,400/mo gross rent ($1,200/side) in Fort Pierce. At 7.5% rate on a conventional 25% down:
- Purchase price: $250K
- Down: $62,500
- PITI: ~$1,650/mo (mortgage $1,310 + taxes $350 + insurance $400)
- PM at 8%: $192
- Vacancy 5%: $120
- Maintenance 5%: $120
- Net cash flow: ~$318/mo = $3,816/yr
- CoC: 6.1%
To hit 10% CoC at those rates, you need to buy at ~$200K for that same $2,400 rent, or find a property renting at $2,800+ at $250K. That narrows your search significantly. Run this math on every deal before
you even drive by it.
What nobody told you about Fort Pierce vs. Lake Worth Beach:
Fort Pierce has better cap rates on paper (7-8% like you said) but the tenant pool is thinner and turnover is higher. Lake Worth has lower caps (6-7%) but stronger tenant demand, lower vacancy, and better
appreciation trajectory because of Palm Beach County spillover. The question is whether you're optimizing for cash flow today or total return over 10 years. For buy-and-hold, I'd lean Lake Worth — you'll
sacrifice 1% cap rate but gain in appreciation and lower vacancy drag.
One tactical move that saves most first-time Florida investors:
Get your property tax exemption strategy figured out BEFORE you close. Florida homestead exemption doesn't apply to investment property, but if you house hack (live in one unit of the duplex), you can homestead your unit and save $1,500-2,500/yr in taxes. On a deal this size, that's the difference between 8% CoC and 10% CoC.
Happy to compare deal assumptions — I work across real estate and property management tech and these Florida markets specifically.
Nicholas
Thank you for your message and for the very thoughful and detailed break down. If you'll indulge me I'd appreciate your input, and anyone else that reads this post, as I am modeling my process and want to make sure that my process is sound. Let's use this current listing for modeling purposes:
902 N. F Street, Lake Worth Beach FL 33460 listed for 599k. Duplex purchased by current owner in 2020 for 325k. CBS construction.
(2) 3/2 approx 1800 and 2000 SF units renting at $1950 each. (Market rents for 3/2 in 33460 approx - 2.8k)Current Gross - $3900 x12 =$46,800
Expenses @ 45% = $21,060 (This number was even greater when used recommended percentages per category. 5% vacancy, 8% management, actual taxes, etc...). But let's stick with 45%
NOI = $25,740
Cap Rate = 4.3%
------------
Purchase Price - $599,000
Down Pymt - $120,000
Loan - $479,000 x 7% x30 yrs = $3188
$3188 x12 = $38,256 = $-12,516 cash flow - NO DEAL
------------
If i structure based on my minimum 6% cap rate for Lake Worth Beach
Max offer = 429k - unlikely to be a deal since current owner purchased for 325k in 2020
Regardless, this is the work up on reduced purchase price
------------
Purchase price = $429,000
Down payment = $85,800
Loan = $343,200 x 7%x30 years = $2283
annual debt service = $27,396
Cash Flow = $-1656 - NO DEAL
My Questions:
1. How does this make sense? No cash flow, doesn't meet market cap rates, need to invest/make improvements to get rents up to market rates, cash on cash is non-existent. Maybe that's why it hasn't been snatched up?
2. Is there a quicker way to assess without going through the entire process? I've been told by several local realtors that the 1 % rule has been non-existent for years so that won't work here in S Fl.
3. Should I be investing in an investor app that helps with these assessments? I'm doing this all with an excel spreadsheet. Not fast!
4. Am I candidly looking for a unicorn?
Finally, we've considered the house hack but can't relocate north for another 12-18 months. A house hack with ADU is in our future plans.
Again, thank you for your thoughts and your time.
Dineen
- Real Estate Agent · Merritt Island, FL · Member since 2017 · 974 posts · 1k+ votes6mo
Quote from @Dineen Garcia:
902 N. F Street, Lake Worth Beach FL 33460 listed for 599k. Duplex purchased by current owner in 2020 for 325k. CBS construction.
(2) 3/2 approx 1800 and 2000 SF units renting at $1950 each. (Market rents for 3/2 in 33460 approx - 2.8k)Current Gross - $3900 x12 =$46,800
Expenses @ 45% = $21,060 (This number was even greater when used recommended percentages per category. 5% vacancy, 8% management, actual taxes, etc...). But let's stick with 45%
NOI = $25,740
Cap Rate = 4.3%
------------
Purchase Price - $599,000
Down Pymt - $120,000
Loan - $479,000 x 7% x30 yrs = $3188
$3188 x12 = $38,256 = $-12,516 cash flow - NO DEAL
------------
If i structure based on my minimum 6% cap rate for Lake Worth Beach
Max offer = 429k - unlikely to be a deal since current owner purchased for 325k in 2020
Regardless, this is the work up on reduced purchase price
------------
Purchase price = $429,000
Down payment = $85,800
Loan = $343,200 x 7%x30 years = $2283
annual debt service = $27,396
Cash Flow = $-1656 - NO DEAL
My Questions:
1. How does this make sense? No cash flow, doesn't meet market cap rates, need to invest/make improvements to get rents up to market rates, cash on cash is non-existent. Maybe that's why it hasn't been snatched up?
2. Is there a quicker way to assess without going through the entire process? I've been told by several local realtors that the 1 % rule has been non-existent for years so that won't work here in S Fl.
3. Should I be investing in an investor app that helps with these assessments? I'm doing this all with an excel spreadsheet. Not fast!
Hi Dineen,
Here's a shortcut that I use: if rents are real (ie, market), I loosely apply the 1% rule and if it is far off (eg, $3900/mo rent on $599k purchase), I move on to the next one. I won't even waste my time. I say "loosely" because 1% does not apply in all places and South FL is one of those places where it is near impossible to find - so bending to a little lower percentage is ok. But giving leeway does not mean contorting; just ditch it for the next. There are many other deals looking to be found.
You mention investing farther north, that's a great idea. In 2018 I left the area and moved several hours north. The biggest downside is that multi-units are limited. In Miami-Dade and Broward there are duplexes, triplexes and quads everywhere. M-D has tons of 6-, 8-, 10-units and more. It's less populated in other parts of FL so the need to go multi is less. That said, they do exist and SFHs can be obtained and considerably less than down south. I'd look past PBC (that's considered S. FL) and look at Indian River, Brevard and even Volusia counties on the east side. There's opportunity way up north as well as in the Tampa area, though I'm not as well-versed in those places.
Good luck!
Tchaka
- Member since 2026 · 16 posts · 8 votes6mo
Quote from @Tchaka Owen:
Quote from @Dineen Garcia:
902 N. F Street, Lake Worth Beach FL 33460 listed for 599k. Duplex purchased by current owner in 2020 for 325k. CBS construction.
(2) 3/2 approx 1800 and 2000 SF units renting at $1950 each. (Market rents for 3/2 in 33460 approx - 2.8k)Current Gross - $3900 x12 =$46,800
Expenses @ 45% = $21,060 (This number was even greater when used recommended percentages per category. 5% vacancy, 8% management, actual taxes, etc...). But let's stick with 45%
NOI = $25,740
Cap Rate = 4.3%
------------
Purchase Price - $599,000
Down Pymt - $120,000
Loan - $479,000 x 7% x30 yrs = $3188
$3188 x12 = $38,256 = $-12,516 cash flow - NO DEAL
------------
If i structure based on my minimum 6% cap rate for Lake Worth Beach
Max offer = 429k - unlikely to be a deal since current owner purchased for 325k in 2020
Regardless, this is the work up on reduced purchase price
------------
Purchase price = $429,000
Down payment = $85,800
Loan = $343,200 x 7%x30 years = $2283
annual debt service = $27,396
Cash Flow = $-1656 - NO DEAL
My Questions:
1. How does this make sense? No cash flow, doesn't meet market cap rates, need to invest/make improvements to get rents up to market rates, cash on cash is non-existent. Maybe that's why it hasn't been snatched up?
2. Is there a quicker way to assess without going through the entire process? I've been told by several local realtors that the 1 % rule has been non-existent for years so that won't work here in S Fl.
3. Should I be investing in an investor app that helps with these assessments? I'm doing this all with an excel spreadsheet. Not fast!
Hi Dineen,
Here's a shortcut that I use: if rents are real (ie, market), I loosely apply the 1% rule and if it is far off (eg, $3900/mo rent on $599k purchase), I move on to the next one. I won't even waste my time. I say "loosely" because 1% does not apply in all places and South FL is one of those places where it is near impossible to find - so bending to a little lower percentage is ok. But giving leeway does not mean contorting; just ditch it for the next. There are many other deals looking to be found.
You mention investing farther north, that's a great idea. In 2018 I left the area and moved several hours north. The biggest downside is that multi-units are limited. In Miami-Dade and Broward there are duplexes, triplexes and quads everywhere. M-D has tons of 6-, 8-, 10-units and more. It's less populated in other parts of FL so the need to go multi is less. That said, they do exist and SFHs can be obtained and considerably less than down south. I'd look past PBC (that's considered S. FL) and look at Indian River, Brevard and even Volusia counties on the east side. There's opportunity way up north as well as in the Tampa area, though I'm not as well-versed in those places.
Good luck!
Tchaka
Thanks Tchaka! Appreciate the input. Have you found your deals as MLS listings or pocket listings? Just wondering if my search strategy needs to be adjusted. One responder recommended I sign up for Propstream. I looked into it and it was overwhelming as I'd have to figure out how to navigate the options plus figure out how auctions work, or start mailers, etc... Candidly too heavy of a lift right now as I try to find my first deal.
- Member since 2021 · 81 posts · 79 votes7mo
@Dineen Garcia — Your math is right. Both scenarios are negative because at 7% interest with 20% down, your breakeven cap rate is 6.38%.
Anything below that is underwater before vacancy. The $599K listing at 4.3% cap and your $429K target at 6% cap both fall short.
But there's a play here. Those units are $850/unit below market rent. Negotiate to ~$450K, invest $35K in cosmetic reno, raise rents to $2,600.
That gets you to positive cash flow now and 6%+ CoC when rates compress. That's how experienced FL investors are playing this cycle — buy the
value-add at a discount, survive thin margins, refi later.
Now your questions:
1. How does this make sense?
It doesn't — at asking price. The seller bought at $325K in 2020 when rates were 3% and is anchored to appreciation gains. At 3%, this deal
works beautifully. At 7%, it's underwater. The market agrees with your spreadsheet. That's exactly why it's sitting unsold.
The right question is: at what price does it START to work? For this property with value-add to $2,600 rents, that's roughly $420-$460K.
2. Is there a quicker way to assess?
Yes. Three filters, 60 seconds, before you ever open your spreadsheet:
- GRM (price ÷ annual gross rent) — above 11, walk. This listing: 12.8. Instant no.
- 50% Rule — half of gross covers the mortgage? $1,950 vs $3,188. Dead.
- Cap rate vs 6.4% — below that at today's rates means no cash flow with conventional financing. This alone eliminates 80% of listed Palm Beach
County properties.
If a deal fails any one of these, don't waste 15 minutes on a full workup.
3. Should I invest in an investor app?
Not yet. Your spreadsheet is fine — the bottleneck isn't analysis speed. You can underwrite a deal in 15 minutes. The problem is 95% of what's
listed in South Florida doesn't work. Getting faster at saying no doesn't find you a yes.
What will actually move the needle: PropStream ($99/mo) for off-market leads, pre-foreclosures, and motivated sellers. Palm Beach County
property appraiser website (free) for real tax numbers and sale history. RentCast or Rentometer (free tier) to verify market rents before
trusting a listing broker's pro forma.
The deal source is what needs upgrading, not the calculator.
4. Am I looking for a unicorn?
No — but you're fishing in the wrong pond. A 10% CoC on a listed duplex in Palm Beach County at 7% rates does not exist on the MLS. The math
proves it. To get there you need one of these:
- Off-market at 15-25% below retail
- Value-add with rent upside like this property
- Creative financing — seller finance at 4-5%, or subject-to the seller's existing low-rate mortgage
- House hack — which you're already planning and is genuinely the fastest path to 10%+ effective CoC
Your analysis skills are already sharp. Deal sourcing is the next level.
One last thing — get a real insurance quote before underwriting anything in 33460. Wind zone, ~3,800 SF duplex, you're looking at $5K-$8K/yr.
Pre-2017 roof and some carriers won't even write it. Check flood zone too. Insurance is breaking more Florida deals than cap rates right now.
Nicholas
- Member since 2026 · 16 posts · 8 votes6mo
Quote from @Nicholas Cokas:
@Dineen Garcia — Your math is right. Both scenarios are negative because at 7% interest with 20% down, your breakeven cap rate is 6.38%.
Anything below that is underwater before vacancy. The $599K listing at 4.3% cap and your $429K target at 6% cap both fall short.
But there's a play here. Those units are $850/unit below market rent. Negotiate to ~$450K, invest $35K in cosmetic reno, raise rents to $2,600.
That gets you to positive cash flow now and 6%+ CoC when rates compress. That's how experienced FL investors are playing this cycle — buy the
value-add at a discount, survive thin margins, refi later.
Now your questions:
1. How does this make sense?
It doesn't — at asking price. The seller bought at $325K in 2020 when rates were 3% and is anchored to appreciation gains. At 3%, this deal
works beautifully. At 7%, it's underwater. The market agrees with your spreadsheet. That's exactly why it's sitting unsold.
The right question is: at what price does it START to work? For this property with value-add to $2,600 rents, that's roughly $420-$460K.
2. Is there a quicker way to assess?
Yes. Three filters, 60 seconds, before you ever open your spreadsheet:
- GRM (price ÷ annual gross rent) — above 11, walk. This listing: 12.8. Instant no.
- 50% Rule — half of gross covers the mortgage? $1,950 vs $3,188. Dead.
- Cap rate vs 6.4% — below that at today's rates means no cash flow with conventional financing. This alone eliminates 80% of listed Palm Beach
County properties.
If a deal fails any one of these, don't waste 15 minutes on a full workup.
3. Should I invest in an investor app?
Not yet. Your spreadsheet is fine — the bottleneck isn't analysis speed. You can underwrite a deal in 15 minutes. The problem is 95% of what's
listed in South Florida doesn't work. Getting faster at saying no doesn't find you a yes.
What will actually move the needle: PropStream ($99/mo) for off-market leads, pre-foreclosures, and motivated sellers. Palm Beach County
property appraiser website (free) for real tax numbers and sale history. RentCast or Rentometer (free tier) to verify market rents before
trusting a listing broker's pro forma.
The deal source is what needs upgrading, not the calculator.
4. Am I looking for a unicorn?
No — but you're fishing in the wrong pond. A 10% CoC on a listed duplex in Palm Beach County at 7% rates does not exist on the MLS. The math
proves it. To get there you need one of these:
- Off-market at 15-25% below retail
- Value-add with rent upside like this property
- Creative financing — seller finance at 4-5%, or subject-to the seller's existing low-rate mortgage
- House hack — which you're already planning and is genuinely the fastest path to 10%+ effective CoC
Your analysis skills are already sharp. Deal sourcing is the next level.
One last thing — get a real insurance quote before underwriting anything in 33460. Wind zone, ~3,800 SF duplex, you're looking at $5K-$8K/yr.
Pre-2017 roof and some carriers won't even write it. Check flood zone too. Insurance is breaking more Florida deals than cap rates right now.
Nicholas
Nicholas,
Once again, thank you for your input and the valuable nuggets of info and time savers. Already ran several listings through them and they are a life saver. I'm studying your approach and considering your recommendation on the duplex play. Also, thinking about where in Florida do actual cash flow deals exist? My research is telling me Fort Pierce and Daytona are better markets for cash flow than Lake Worth. Will take a look at PropStream. Again, thanks for our time.
Dineen
- 7moBenjamin AakerPro MemberRental Property Investor · Brandon, SD · Member since 2015 · 1k+ posts · 1k+ votesHi Dineen,
I own a condo in Treasure Island and have been looking for multifamily in the area. I'm happy to talk with you if you have questions.- Member since 2026 · 16 posts · 8 votes6mo
Quote from @Benjamin Aaker:
Hi Dineen,
I own a condo in Treasure Island and have been looking for multifamily in the area. I'm happy to talk with you if you have questions.Hi Benjamin,
Thanks for your outreach. Would love to hear your experience identifying properties. Will DM you so we can compare notes.
Dineen
- 6moJ CastroBusiness MemberLender · Florida · Member since 2025 · 673 posts · 240 votes
Quote from @Dineen Garcia:
Hi everyone,
I’m based in Miami, Florida and working toward purchasing a duplex–quadplex property in growth Florida markets on the Treasure Coast, Palm Beach County and parts of the Gulf Coast (south of Tampa).
My goal is a long-term-buy-and-hold property with solid fundamentals and sustainable cash flow.
I’m especially interested in connecting with Florida-based investors with local experience, but I’d also value input from investors in other markets who have experience with small multi-family and long-term buy-and-hold strategies.
I’m hoping to connect with investors who are open to:
-
- Sharing market perspective
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- Comparing deal assumptions
-
- Possibly meeting in person if local
I’m serious about making a purchase within the next 3-6 months and appreciate learning from people who have gone through the process.
If you're open to connecting, feel free to reach out.
Thank you!
Dineen
Love the clarity of your plan — duplex to quad in strong Florida growth corridors with a long-term hold mindset is a solid strategy.Treasure Coast, Palm Beach County, and parts of the Gulf Coast south of Tampa all have different fundamentals, so dialing in submarket-level data (rent growth, insurance trends, taxes, and flood zones) will be key. In Florida especially, insurance and property taxes can make or break cash flow assumptions — so stress-testing your numbers upfront is critical.
For small multifamily buy-and-hold, what I’ve seen work well:
• Underwrite conservatively on rents and vacancy
• Factor realistic insurance quotes early (don’t rely on estimates)
• Look for properties with value-add upside (below-market rents, cosmetic upgrades, operational inefficiencies)
• Ensure your DSCR works comfortably at today's rates, not just optimisticallyIf you’re planning to move in the next 3–6 months, now is the right time to:
– Build lender relationships
– Get clear on your buy box
– Start touring consistentlyIf you’d like to compare deal assumptions or run numbers on a property you’re considering, I’d be happy to connect. Always good to collaborate with serious long-term investors who focus on fundamentals over hype.
Best of luck — Florida small multifamily done right can be a strong long-term play.
- Member since 2026 · 16 posts · 8 votes6mo
Quote from @J Castro:
Quote from @Dineen Garcia:
Hi everyone,
I’m based in Miami, Florida and working toward purchasing a duplex–quadplex property in growth Florida markets on the Treasure Coast, Palm Beach County and parts of the Gulf Coast (south of Tampa).
My goal is a long-term-buy-and-hold property with solid fundamentals and sustainable cash flow.
I’m especially interested in connecting with Florida-based investors with local experience, but I’d also value input from investors in other markets who have experience with small multi-family and long-term buy-and-hold strategies.
I’m hoping to connect with investors who are open to:
-
- Sharing market perspective
-
- Comparing deal assumptions
-
- Possibly meeting in person if local
I’m serious about making a purchase within the next 3-6 months and appreciate learning from people who have gone through the process.
If you're open to connecting, feel free to reach out.
Thank you!
Dineen
Love the clarity of your plan — duplex to quad in strong Florida growth corridors with a long-term hold mindset is a solid strategy.Treasure Coast, Palm Beach County, and parts of the Gulf Coast south of Tampa all have different fundamentals, so dialing in submarket-level data (rent growth, insurance trends, taxes, and flood zones) will be key. In Florida especially, insurance and property taxes can make or break cash flow assumptions — so stress-testing your numbers upfront is critical.
For small multifamily buy-and-hold, what I’ve seen work well:
• Underwrite conservatively on rents and vacancy
• Factor realistic insurance quotes early (don’t rely on estimates)
• Look for properties with value-add upside (below-market rents, cosmetic upgrades, operational inefficiencies)
• Ensure your DSCR works comfortably at today's rates, not just optimisticallyIf you’re planning to move in the next 3–6 months, now is the right time to:
– Build lender relationships
– Get clear on your buy box
– Start touring consistentlyIf you’d like to compare deal assumptions or run numbers on a property you’re considering, I’d be happy to connect. Always good to collaborate with serious long-term investors who focus on fundamentals over hype.
Best of luck — Florida small multifamily done right can be a strong long-term play.
J, Thanks for your response. Will reach out once find some "deals" worth discussing. Best,
Dineen
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- Lender · Miami, FL · Member since 2025 · 123 posts · 34 votes6mo
Hi @Dineen Garcia,
My partners and I have closed over 10,000 real estate deals both on the investor and lender side. In Miami and across the US. We know what investors need and we have the experience and lending relationships to deliver.
Let me know if you'd like to connect!
- Real Estate Agent · Saint Petersburg Florida · Member since 2026 · 30 posts · 14 votes6mo
Great plan. I work on the Gulf Coast side of Florida and we’re seeing a lot of investor interest right now in small multifamily for the same long-term hold strategy you mentioned. The fundamentals in several markets west & south of Tampa are still strong, especially where development and rental demand are steady.
Happy to share some perspective on what we’re seeing locally and compare notes on deal assumptions if it’s helpful as you narrow down areas.
- Investor · Tampa, FL · Member since 2026 · 24 posts · 18 votes6mo
I'm in Tampa with 8 doors, mostly SFH, and actively looking at small multifamily in the 4-8 unit range so I'm running similar numbers right now. The insurance point Nicholas made is the big one. I've had quotes come back 30-40% higher than what I modeled on recent Florida deals and it blows up the DSCR fast. Make sure you're getting actual quotes on a specific property and not just plugging in an estimate, that single line item has killed more of my deals this year than anything else.
On the financing side if you go DSCR the lender is going to want rents covering debt at 1.2x minimum and they use the lower of in-place rents or appraised market rents, not proformas. Fort Pierce at those price points is more realistic for 10% CoC than Lake Worth right now.
- 6moCaeli RidgeBusiness MemberLender · Portland, OR · Member since 2016 · 30 posts · 13 votes
Sounds like you’re approaching it with the right mindset — focusing on fundamentals and long-term hold instead of chasing short-term appreciation.
Florida still attracts a lot of investors for small multifamily, but a few factors have become especially important to watch in the last couple of years. Insurance and property taxes can vary quite a bit by county and can impact cash flow more than expected, particularly in coastal areas. It’s worth building those costs into your projections early so the numbers still work if they increase over time.
For the areas you mentioned:
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Treasure Coast markets have been seeing steady population growth and are still somewhat more affordable than South Florida.
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Palm Beach County tends to have strong rental demand but prices are higher, so the deal really needs to pencil out.
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Gulf Coast markets south of Tampa have attracted a lot of migration in recent years, but insurance and storm exposure can be a factor depending on the property location.
With small multifamily (2–4 units), many investors like them because they offer multiple income streams on one property, which can help stabilize cash flow compared to a single-family rental.
If you’re looking to connect with people locally, Florida has very active REIA groups and investor meetups, especially in South Florida and along the Gulf Coast. Those can be great places to compare deal assumptions and hear firsthand what other investors are seeing in the market.
It sounds like you’re doing the right thing by building relationships and gathering local insight before pulling the trigger.
– Ridge Lending Group (Licensed in 49 states, excluding NY)
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- 6moJorge VazquezBusiness MemberReal Estate Broker · Tampa, FL · Member since 2017 · 1k+ posts · 684 votes
Hi Dineen, happy to connect. I’ve been investing in the Tampa Bay area for about 20 years. I actually just sold a duplex in Clearwater for $220K and still own another duplex in St. Pete. If you’re looking at small multifamily in Florida and want to compare notes or talk through deal assumptions, I’m always happy to help. Feel free to reach out.
Graystone Investment Group4.6271 Reviews - 6moEvan GrantPro MemberHinton, WV · Member since 2026 · 7 posts · 4 votes
Replying to Dineen, and perhaps all parties here. Is there an easily accessible real estate investing club in Miami that is not selling a product? I for one am South Florida based, and would be open to a forum to exchange ideas. Just a thought. Happy to connect with you, Dineen, and anyone interested.
- Member since 2026 · 16 posts · 8 votes6mo
Hi Evan,
I look forward to seeing the responses. Good luck in your search.
Best,
Dineen
Quote from @Evan Grant:
Replying to Dineen, and perhaps all parties here. Is there an easily accessible real estate investing club in Miami that is not selling a product? I for one am South Florida based, and would be open to a forum to exchange ideas. Just a thought. Happy to connect with you, Dineen, and anyone interested.
- Investor · Miami, FL · Member since 2026 · 20 posts · 7 votes6mo
Hey Dineen and Evan — Miami-based multifamily investor here, happy to connect.
Dineen, since you're looking at duplex-quadplex in growth Florida markets, I want to share some data points that might help you narrow down where the numbers actually work for long-term buy-and-hold. I spend most of my time analyzing multifamily fundamentals across Miami-Dade, so here's what I'm seeing that might be relevant as you compare markets:
Why Miami-Dade is trickier than it looks for small multifamily:
The headline numbers are seductive — 5-year appreciation in some zones is 60-85%, average rents run $1,800-$3,500 depending on the corridor. But cap rates in the core areas (Brickell, Coconut Grove, Coral Gables) are compressed to 4.2-5.0%, which makes it very hard to cash flow on a leveraged deal at today's rates.
Where the math starts working in South Florida:
The zones where I'm seeing the best risk-adjusted yields for buy-and-hold are the emerging corridors — places like Allapattah (cap rates 5.8-6.5%, average rent ~$1,850, 5yr appreciation 72%), Little Havana (5.5-6.2% caps, ~$1,750 rent), and Homestead (6.0-7.0% caps, ~$1,500 rent, but lower entry at $150-200K/unit). These still have entry points below replacement cost, and rent growth is outpacing the county average.
The expense side is where most people get burned in Florida right now:
Insurance is the biggest variable — I'm tracking $1,400-$2,800 per unit annually depending on flood zone designation and building age. A building in an AE flood zone vs. an X zone can mean a $15K-$20K/year difference on a 10-unit. Millage rates also vary enormously across Miami-Dade — from about 17.5 to 24 depending on the municipality, which is a 35%+ spread in your tax bill on the same assessed value. These two line items alone can swing your cash-on-cash by 200-300 basis points.
For Treasure Coast and Palm Beach:
You'll generally find lower insurance costs (less flood exposure) and slightly better cap rates than Miami proper, but rent growth has been slower and the tenant pool is thinner for multifamily. Make sure you're comparing net yields after all expenses, not just headline cap rates.
If you want to compare deal assumptions on specific zones or corridors, I'm always happy to dig into the numbers. That's basically what I do all day. Welcome to the search — the good deals in Florida are still out there, they just require more diligence than they did two years ago.
- Member since 2026 · 16 posts · 8 votes6mo
Quote from @Santiago Gonzalez:
Hey Dineen and Evan — Miami-based multifamily investor here, happy to connect.
Dineen, since you're looking at duplex-quadplex in growth Florida markets, I want to share some data points that might help you narrow down where the numbers actually work for long-term buy-and-hold. I spend most of my time analyzing multifamily fundamentals across Miami-Dade, so here's what I'm seeing that might be relevant as you compare markets:
Why Miami-Dade is trickier than it looks for small multifamily:
The headline numbers are seductive — 5-year appreciation in some zones is 60-85%, average rents run $1,800-$3,500 depending on the corridor. But cap rates in the core areas (Brickell, Coconut Grove, Coral Gables) are compressed to 4.2-5.0%, which makes it very hard to cash flow on a leveraged deal at today's rates.
Where the math starts working in South Florida:
The zones where I'm seeing the best risk-adjusted yields for buy-and-hold are the emerging corridors — places like Allapattah (cap rates 5.8-6.5%, average rent ~$1,850, 5yr appreciation 72%), Little Havana (5.5-6.2% caps, ~$1,750 rent), and Homestead (6.0-7.0% caps, ~$1,500 rent, but lower entry at $150-200K/unit). These still have entry points below replacement cost, and rent growth is outpacing the county average.
The expense side is where most people get burned in Florida right now:
Insurance is the biggest variable — I'm tracking $1,400-$2,800 per unit annually depending on flood zone designation and building age. A building in an AE flood zone vs. an X zone can mean a $15K-$20K/year difference on a 10-unit. Millage rates also vary enormously across Miami-Dade — from about 17.5 to 24 depending on the municipality, which is a 35%+ spread in your tax bill on the same assessed value. These two line items alone can swing your cash-on-cash by 200-300 basis points.
For Treasure Coast and Palm Beach:
You'll generally find lower insurance costs (less flood exposure) and slightly better cap rates than Miami proper, but rent growth has been slower and the tenant pool is thinner for multifamily. Make sure you're comparing net yields after all expenses, not just headline cap rates.
If you want to compare deal assumptions on specific zones or corridors, I'm always happy to dig into the numbers. That's basically what I do all day. Welcome to the search — the good deals in Florida are still out there, they just require more diligence than they did two years ago.
Santiago, Appreciate your insights and experience in this South Florida market. I have been focused on Treasure Coast since that is where my research was telling me I could cash flow, still expect appreciation and get in at less than 300k per door. However I haven't had much luck finding "deals". I took Nicholas' advice and started looking at Propstream....but that has been a whole learning curve. I'll definitely reach out to dig into some numbers and learn from someone who has been at it longer than I have.
Best,Dineen
- Investor · Miami, FL · Member since 2026 · 20 posts · 7 votes6mo
Quote from @Dineen Garcia:
Quote from @Santiago Gonzalez:
Hey Dineen and Evan — Miami-based multifamily investor here, happy to connect.
Dineen, since you're looking at duplex-quadplex in growth Florida markets, I want to share some data points that might help you narrow down where the numbers actually work for long-term buy-and-hold. I spend most of my time analyzing multifamily fundamentals across Miami-Dade, so here's what I'm seeing that might be relevant as you compare markets:
Why Miami-Dade is trickier than it looks for small multifamily:
The headline numbers are seductive — 5-year appreciation in some zones is 60-85%, average rents run $1,800-$3,500 depending on the corridor. But cap rates in the core areas (Brickell, Coconut Grove, Coral Gables) are compressed to 4.2-5.0%, which makes it very hard to cash flow on a leveraged deal at today's rates.
Where the math starts working in South Florida:
The zones where I'm seeing the best risk-adjusted yields for buy-and-hold are the emerging corridors — places like Allapattah (cap rates 5.8-6.5%, average rent ~$1,850, 5yr appreciation 72%), Little Havana (5.5-6.2% caps, ~$1,750 rent), and Homestead (6.0-7.0% caps, ~$1,500 rent, but lower entry at $150-200K/unit). These still have entry points below replacement cost, and rent growth is outpacing the county average.
The expense side is where most people get burned in Florida right now:
Insurance is the biggest variable — I'm tracking $1,400-$2,800 per unit annually depending on flood zone designation and building age. A building in an AE flood zone vs. an X zone can mean a $15K-$20K/year difference on a 10-unit. Millage rates also vary enormously across Miami-Dade — from about 17.5 to 24 depending on the municipality, which is a 35%+ spread in your tax bill on the same assessed value. These two line items alone can swing your cash-on-cash by 200-300 basis points.
For Treasure Coast and Palm Beach:
You'll generally find lower insurance costs (less flood exposure) and slightly better cap rates than Miami proper, but rent growth has been slower and the tenant pool is thinner for multifamily. Make sure you're comparing net yields after all expenses, not just headline cap rates.
If you want to compare deal assumptions on specific zones or corridors, I'm always happy to dig into the numbers. That's basically what I do all day. Welcome to the search — the good deals in Florida are still out there, they just require more diligence than they did two years ago.
Santiago, Appreciate your insights and experience in this South Florida market. I have been focused on Treasure Coast since that is where my research was telling me I could cash flow, still expect appreciation and get in at less than 300k per door. However I haven't had much luck finding "deals". I took Nicholas' advice and started looking at Propstream....but that has been a whole learning curve. I'll definitely reach out to dig into some numbers and learn from someone who has been at it longer than I have.
Best,Dineen
Dineen, glad you're digging in — and honestly, the fact that you're finding Treasure Coast tough right now tells me you're being disciplined with your numbers, which is exactly what you want.
A few thoughts on what you're running into:
On the "deals are hard to find" part — that's real across most of Florida right now. What I've found is that the best opportunities aren't on the MLS or even showing up cleanly on Propstream. They come from building relationships with local brokers who specialize in small multifamily (5-20 units) and getting on their pocket listing lists. On the Treasure Coast specifically, the inventory for 2-4 unit properties is thin, so you're competing with a lot of house-hackers and 1031 buyers.
On Propstream — stick with it, the learning curve is worth it. The filters I'd focus on for your criteria: absentee owners, equity above 50%, property owned 10+ years, and 2-4 units. Those long-hold owners are the ones most likely to sell off-market at reasonable prices. You can also cross-reference with county tax records to find properties where assessed value is well below what comps suggest — that gap is where the upside lives.
One thing I'd encourage you to stress-test: when you're comparing Treasure Coast vs. Miami-Dade at that $300K/door target, make sure you're running the full expense stack side by side. Treasure Coast will generally win on insurance and taxes, but Miami-Dade's rent growth in the emerging corridors (Allapattah is running +7.1% YoY, Little Havana +6.2%) can close that gap quickly on a 5-year hold. At $170-250K/door in those zones, you're actually under your $300K target with stronger demand fundamentals.
Happy to walk through a side-by-side comparison on a specific deal if you find something interesting — whether it's Treasure Coast or down here. Sometimes a second set of eyes on the numbers makes all the difference. Feel free to reach out anytime.
- Rental Property Investor · Port St Lucie, FL · Member since 2019 · 150 posts · 79 votes6mo
Dineen
I live on the treasure coast in Port St. Lucie. I no longer invest here as it’s difficult to cash flow. If I were going to invest in FL I would go a bit north into Indian River County and Brevard County as these as the next emerging markets. I invest in NC as insurance and taxes are allot less and give me great cash flow.
Feel free to DM meThanks
Bob
- Member since 2026 · 16 posts · 8 votes6mo
Quote from @Bob Anthes:
Dineen
I live on the treasure coast in Port St. Lucie. I no longer invest here as it’s difficult to cash flow. If I were going to invest in FL I would go a bit north into Indian River County and Brevard County as these as the next emerging markets. I invest in NC as insurance and taxes are allot less and give me great cash flow.
Feel free to DM meThanks
Bob
Bob,
My original geography was set around being able to actively manage so driveable from Miami if needed. It seems like I need to throw that parameter out the window. I did briefly look at Volusia county as that is another market that is experiencing growth...but numbers don't appear to be penciling very well there either. While I would love significant cash flow my goal is long term hold and appreciation. For my first deal I'm hesitant to move OOS...perhaps once I get the first one under my belt with some experience I'll feel more confident in moving further. Thanks for your outreach.
Dineen
- 6moJ CastroBusiness MemberLender · Florida · Member since 2025 · 673 posts · 240 votes
Hi @Dineen Garcia — welcome to BP!
You’re looking in some strong areas. Treasure Coast and parts of Palm Beach County have been seeing steady population growth and rental demand, which tends to support small multifamily well if the numbers are right.
One thing many investors overlook with duplex–quadplex deals is financing flexibility. Properties that need light value-add improvements or won’t qualify for conventional financing can still be acquired using investor bridge or DSCR financing, then refinanced once the property is stabilized. That can open up more opportunities in competitive markets.
If you're planning to buy within the next 3–6 months, it’s a good idea to start running numbers now on rent comps, operating costs, and exit strategy so you know exactly what works for your buy-and-hold criteria.
Happy to share insight on the financing side or compare deal assumptions if helpful. Always good connecting with investors in Florida markets.
- 5moJim ThomasPro MemberProperty Manager · Orlando, FL · Member since 2025 · 27 posts · 6 votes
Hey Everyone. Great to see everyone is a focused and relationship-driven approach to building in Central Florida.
From what we’re seeing on the property management side, your timing is solid. There’s currently strong demand for rental housing in key areas like the 32835 and 32832 zip codes—on average, a single home in those neighborhoods is generating around five guest inquiries per day. One thing to keep in mind as you analyze deals is pet restrictions, which can significantly impact rental potential and occupancy.
A bit of background on us—our company was founded in 1993 with a simple philosophy: property owners deserve a management partner who treats every investment like it’s their own. What started as a small, family-run operation has grown into one of Florida’s more established property management groups, now overseeing hundreds of properties and serving both homeowners and guests.
We work with both local and international owners, offering short-term vacation rentals as well as long-term leases, including 12-month agreements. Our focus has been on high-demand markets—especially around Walt Disney World, Miami, and Florida’s west coast—helping owners maximize returns while keeping operations seamless.
Happy to connect and share insights as you continue building—especially if you’re looking at rental strategies or evaluating deals from an end-user or management perspective. We’re always open to one-on-one conversations and collaborating with others who are serious about growth and long-term success.
Wishing you the best as you get started—feel free to reach out anytime.
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