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312 Bream Ave, Fort Walton Beach, FL 32548, USA
Cash-flow positive, but the margin over debt service is thin.
Investment potential
Your scenario · adjust the levers below or open advanced settings to see how returns change
$62,388
$5,199/mo · at 76% occupancy & $312/night
$4,720
$393/mo after costs & mortgage
Cap rate
6.9%
Cash-on-cash
3%
DSCR
1.15
Confidence
Your assumptions
Revenue
$62,388/yr
Market avg: $62,388/yr · 76% occ · $312 ADR
Financing
$31,992/yr
Operating costs
$25,675/yr
How this property compares to similar short-term rentals nearby.
Comparable set · 50 properties
$139–$541
Median $312
43%–92%
Median 76%
$33.9K–$101.1K
Median $62.4K
210–365
Median 300
This property · $62.4K
Comparable properties (50)
Cash flow potential Medium · Appreciation potential Medium
330 days available · 216 days booked ·
300 days available · 241 days booked ·
365 days available · 185 days booked ·
314 days available · 255 days booked ·
354 days available · 214 days booked ·
309 days available · 216 days booked ·
273 days available · 185 days booked ·
293 days available · 239 days booked ·
249 days available · 202 days booked ·
298 days available · 198 days booked ·
362 days available · 171 days booked ·
365 days available · 276 days booked ·
365 days available · 166 days booked ·
274 days available · 162 days booked ·
268 days available · 173 days booked ·
266 days available · 210 days booked ·
268 days available · 193 days booked ·
292 days available · 211 days booked ·
299 days available · 218 days booked ·
272 days available · 147 days booked ·
333 days available · 217 days booked ·
294 days available · 219 days booked ·
350 days available · 237 days booked ·
365 days available · 269 days booked ·
365 days available · 232 days booked ·
240 days available · 208 days booked ·
210 days available · 127 days booked ·
328 days available · 206 days booked ·
217 days available · 160 days booked ·
365 days available · 201 days booked ·
335 days available · 228 days booked ·
229 days available · 180 days booked ·
239 days available · 152 days booked ·
345 days available · 229 days booked ·
324 days available · 171 days booked ·
263 days available · 156 days booked ·
302 days available · 202 days booked ·
270 days available · 187 days booked ·
305 days available · 135 days booked ·
254 days available · 152 days booked ·
287 days available · 136 days booked ·
264 days available · 157 days booked ·
261 days available · 109 days booked ·
352 days available · 223 days booked ·
238 days available · 143 days booked ·
365 days available · 207 days booked ·
365 days available · 212 days booked ·
307 days available · 144 days booked ·
323 days available · 156 days booked ·
279 days available · 152 days booked ·
Revenue and occupancy reflect Chalet's modeled estimates from observed booking activity for comparable active listings. Individual results vary with management, seasonality, and pricing.
Who this property is for
The same property is a great buy for one investor and a trap for another. Here's the honest read.
1031 / high-equity buyer
~$132.0K
Year-1 tax shield
Buying with cash or low leverage removes the debt-coverage problem entirely, so the thesis rests on appreciation plus a large first-year write-off. At roughly 25% of purchase price, the shield is substantial enough to carry the deal on its own.
Price-disciplined buyer
$613.1K
Break-even purchase price
The deal already breaks even at or above the Zestimate, so you don't need a discount to make the math work. Buy at asking and the numbers still hold — rare enough in Fort Walton Beach to be worth moving on.
DSCR cash-flow buyer
1.15
DSCR at asking
The property covers its debt service at asking but sits below the 1.20 most lenders want to see, so expect a larger down payment or a rate buy-down to get it financed. There's no margin for a soft season.
For a buyer who materially participates and qualifies for the STR tax treatment.
$132.0K
Estimated first-year deduction · range $109.5K–$150.4K
Why this matters here
At a marginal bracket, this deduction can be worth $40.5K–$55.7K in estimated federal tax saved.
This only applies if you meet the IRS material-participation tests for short-term rentals and are not using a full-service property manager.
Estimate, subject to CPA review. Cost-segregation percentages shown here are illustrative and depend on an actual study of the property.
Some states do not conform to federal bonus depreciation, so your state may not allow the same first-year treatment shown above.
Chalet can introduce a cost-segregation partner — this is not tax, legal, or financial advice.
How cash-on-cash return moves with purchase price. The marked line is break-even (1.0 DSCR).
At this price: cash-on-cash +3.0%, DSCR 1.15, cash flow $4,720/yr
| Price vs asking | Price | Cash-on-cash | DSCR | Band |
|---|---|---|---|---|
| -25% | $400,725 | 10.2% | 1.53 | Positive |
| -22% | $416,754 | 9.2% | 1.47 | Positive |
| -15% | $454,155 | 6.9% | 1.35 | Positive |
| -8% | $491,556 | 4.9% | 1.25 | Positive |
| Asking | $534,300 | 3.0% | 1.15 | Positive |
| +8% | $577,044 | 1.3% | 1.06 | Positive |
| +15% | $614,445 | -0.0% | 1.00 | At break-even |
Break-even price
$613,135
~-15% under Zestimate. Where this property reaches 1.0 DSCR and neutral cash flow.
Discount needed
−$78,835
The gap between asking and the price a cash-flow buyer can underwrite.
If refi to 5.5% in 24 mo
+$4,689/yr
Illustrative cash-flow improvement at asking price if rates fall. Planning figure, not a forecast.
Annual avg $5,199 · peaks at $7,690 in Jul
Annual avg 66% · peaks at 90% in Jul
$393/mo after all expenses
Cash to close
Down payment, closing costs, and furnishing
$154,947
Return on cash:20.3%
You qualify for STR financing
Your DSCR is 1.15 · lenders typically require 1.0+.
Get matched with 2–3 vetted STR lenders, free.
What the deal returns over the hold — including the tax shield, which is the whole point for an appreciation buyer.
Levered IRR
22.1%
over 5-yr hold, with tax shield
Equity multiple
2.2×
total proceeds vs. $154,947 invested
Projected value at exit
$681,917
year 5 · 5.0% annual appreciation
Tax shield contribution
+7.5 pts
of IRR comes from year-1 depreciation
| Year | Equity | Appreciation | Cumulative cash flow | Total value |
|---|---|---|---|---|
| Year 1 | $137,646 | $26,715 | $53,550 | $217,910 |
| Year 2 | $142,010 | $54,766 | $59,205 | $255,982 |
| Year 3 | $146,691 | $84,219 | $65,811 | $296,721 |
| Year 4 | $151,710 | $115,145 | $73,381 | $340,236 |
| Year 5 | $157,091 | $147,617 | $81,929 | $386,638 |
Projection, not a promise.
Assumes 5.0% annual appreciation, 1.5% rent growth (operating costs held flat), and that the property qualifies for short-term-rental tax treatment. The year-1 depreciation shield depends on a real cost-segregation study and your tax situation — consult a CPA.
Appreciation is the dominant driver of this return. When cash flow is negative, the deal depends on the property gaining value — it is not paying for itself from income.
Appreciation, rent growth, and financing rates are editable under Edit financials.
STR deals turn on local rules and demand that a generalist agent misses. Chalet matches you with a vetted Fort Walton Beach agent who knows which properties actually cash flow — and which to avoid.
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Real Estate Investment Analysis & Market Insights
Disclaimer
This page and the data presented are for informational purposes only. The information provided should not be construed as financial, legal, or investment advice. Market conditions can change rapidly, and past performance does not guarantee future results. Always consult with qualified professionals before making investment decisions.
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