6535 16th St N, Saint Petersburg, FL 33702 — 29.2% Cash-on-Cash

About this property

A 3-bedroom, 2-bath single-family property in Saint Petersburg's 33702 zip, listed at $235,000 with no HOA or CDD obligations.

The property sits on a 8,107-square-foot lot, giving it meaningful outdoor space relative to its 1,013-square-foot interior. The kitchen has been updated with granite counters, white cabinetry, and a modern backsplash — the kind of finish that photographs well and holds tenant appeal without requiring immediate capital. A screened front porch and a fully fenced backyard with a wood gazebo round out the exterior, both practical amenities for a Florida rental.

The floor plan puts one bedroom off the kitchen, separated from the other two — a layout that works well for tenants who want a home office or occasional guest room without sacrificing privacy. The listing has been on the market 13 days, which is short enough to suggest the price hasn't spooked buyers but long enough that a negotiated offer isn't unreasonable.

Public records show a tax-assessed value of $314,445 against a $235,000 asking price — a notable gap that may reflect assessment timing or market softening since the last assessment cycle. The property is non-owner occupied, meaning it's already positioned as an investment asset rather than a primary residence transition.

The investment case

At 29.2% cash-on-cash return against a 33702 zip average of 13.6%, this property generates more than twice the yield of a typical comparable listing in the area.

List Price

$235,000

Monthly Payment (PITI+HOA)

$1,636

Principal & Interest

$1,204

Property Tax

$354

Insurance

$78

HOA

$0

PMI

$0

Est. Monthly Rent

$2,781

Estimated rent based on automated valuation of comparable listings.

Cash-on-Cash Return

29.2%

Cap Rate

13.8%

Monthly Cash Flow

$1,145

Gross Rent Multiplier

7.0

DSCR

2.2

The numbers start with a $235,000 purchase price. At a 6.52% 30-year fixed rate, principal and interest run $1,204 per month. Add property tax at $354 and insurance at $78, and total monthly carrying cost lands at $1,636. With estimated monthly rent at $2,781, cash flow after debt service is $1,145 per month — $13,740 annually.

The cap rate of 13.8% is the figure that stands out most to an all-cash or institutional buyer. Net operating income of $2,703 per month ($32,436 annually) against a $235,000 purchase price is a ratio that's rare in Florida's current market. The city average cash-on-cash sits at 4.6%; this property's 29.2% return is more than six times that benchmark.

The debt service coverage ratio of 2.2 means the property generates $2.20 in rental income for every $1.00 of debt obligation — well above the 1.25 threshold most lenders require and a meaningful buffer against vacancy or rent softness. The gross rent multiplier of 7.0 confirms the price-to-rent relationship is tilted toward the buyer.

The effective property tax rate of 1.81% is reflected in the $354 monthly tax line. That's a real carrying cost, but it doesn't materially change the return profile at this rent level. Figures exclude depreciation tax benefits, which vary by individual tax situation.

The financial case here is straightforward: the price is low relative to the rent the market supports, and the leverage math amplifies that gap into a CoC return that's genuinely unusual for the zip.

5-year return outlook

The projected 47.9% total 5-year ROI breaks down across three components, with cash flow doing the majority of the work.

Cash flow contributes 29.2 percentage points of the 47.9% total — the dominant driver by a wide margin. Mortgage paydown adds another 4.7 points as principal reduces over the five-year window. Appreciation accounts for an estimated 14.0 points, based on a projected annual appreciation rate of approximately 2.8% for the Saint Petersburg market.

That appreciation figure is an estimate, not a guaranteed trajectory. The Saint Petersburg market has seen price pressure in recent years, and the for-sale comp landscape in 33702 — where comparable 3-bed properties are listed between $312,400 and $669,000 — suggests the neighborhood supports higher valuations than this property's $235,000 entry point. Whether the gap closes over five years depends on broader market conditions.

The more durable part of the return is the cash flow component. As long as the property stays occupied near the estimated rent, the 29.2% annual CoC contribution compounds reliably. The 2.2 DSCR provides a cushion: rents would need to fall roughly 30% before cash flow turns negative, which gives the five-year projection meaningful downside protection.

Mortgage paydown, while the smallest contributor at 4.7%, is non-discretionary — it accrues regardless of market conditions and increases the investor's equity position independent of appreciation.

How it compares to nearby for-sale listings

Three active 3-bedroom listings in ZIP 33702 provide a price-per-square-foot reference point for evaluating this property's $235,000 ask.

At $235,000 for 1,013 square feet, this property prices at roughly $232 per square foot. The comp set tells a different story: the nearest comparable at 6443 31st St N asks $312,400 for 1,404 square feet ($222/sqft), while 6725 17th Ln N is listed at $380,000 for 1,415 square feet ($269/sqft). The outlier at 767 Caya Costa Ct NE — $669,000 for 1,628 square feet — skews the median comp price to $380,000 but likely reflects a premium location or condition that doesn't apply here.

The comp median of $380,000 sits $145,000 above this property's ask. Even adjusting for the smaller footprint, the price-per-square-foot gap is narrow enough to suggest this listing isn't deeply discounted on a per-foot basis — the investment case comes from the rent-to-price ratio, not a dramatic discount to replacement cost.

Days on market across the comp set range from 5 to 46 days, with the highest-priced listing moving fastest and the most affordable comp sitting longest. This property's 13 days on market puts it in the middle of that range — active enough to suggest real buyer interest, not so fast that an investor needs to waive due diligence to compete.

Rental demand in this zip

No directly comparable rental listings were identified in ZIP 33702 for 3-bedroom units, which limits the ability to benchmark the rent estimate against local market data.

The estimated monthly rent of $2,781 is the foundation of the entire cash flow analysis. With zero rental comps available in 33702 for this bedroom count, that figure can't be cross-checked against active listings in the immediate zip. That's a real gap in the underwriting confidence, and any investor should treat the rent estimate as a projection rather than a confirmed market rate.

What does provide some context: the gross rent multiplier of 7.0 implies the market is pricing rent generously relative to the purchase price. A GRM of 7.0 means the property costs roughly 7 times its annual gross rent — historically a sign of a landlord-favorable rent-to-price relationship. In markets where GRMs run 12 to 15, investors typically see much thinner yields.

The debt service coverage ratio of 2.2 also provides indirect validation: even if the actual achievable rent came in 20% below the estimate — at roughly $2,225 per month — the property would still cover its debt service. That's a meaningful margin of safety when rental comps are thin.

The practical recommendation is to pull active rental listings within a 2-3 mile radius before closing, and to verify the estimate against property management quotes for the specific submarket. The financial model is compelling, but the rent assumption is the single variable that most directly drives the return.

Who this property suits + risks to weigh

This property suits a yield-focused investor comfortable with a small-footprint rental and willing to accept some uncertainty on the rent estimate.

Best fit

The 29.2% cash-on-cash return and 2.2 DSCR make this most attractive to a buy-and-hold investor prioritizing income over appreciation. The $235,000 entry point is accessible for a smaller portfolio or a first investment property. No HOA or CDD means no additional governance layer, no fee escalation risk, and no restrictions on tenant selection or lease terms — all meaningful for a landlord managing the asset independently.

The non-owner-occupied status and the seller financing option noted in the listing suggest the current owner is motivated to transact, which creates room for negotiation on price or terms. An investor who can move quickly and has financing lined up is in a reasonable position to extract additional value at closing.

Risks to weigh

The rent estimate is the central risk. With no rental comps confirmed in 33702 for 3-bedroom units, the $2,781 figure is a projection. If the achievable rent is materially lower, the cash-on-cash return compresses — at $2,400/month, for example, CoC would fall from 29.2% to something closer to 18-19%, still strong but a different deal.

The tax-assessed value of $314,445 against a $235,000 purchase price is worth monitoring. Florida's assessment system can lag market values, but if the assessed value reflects a prior higher-value transaction or a future reassessment trigger, the $354 monthly tax line could increase after purchase.

At 1,013 square feet, the property has limited upside for rent increases tied to square footage. Tenant demand at this size is typically stable but not premium. Maintenance costs on an older structure should be budgeted conservatively.