Future Florida Multi-Unit Investor Looking to Connect

[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

[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