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520 NW 25th Ave, Miami, FL 33125, USA
Priced too high to cash-flow with a loan — an equity or tax play, not income.
Investment potential
Your scenario · adjust the levers below or open advanced settings to see how returns change
$70,264
$5,855/mo · at 62% occupancy & $400/night
-$3,864
-$322/mo after costs & mortgage
Cap rate
5.4%
Cash-on-cash
-1.9%
DSCR
0.91
Confidence
Your assumptions
Revenue
$70,264/yr
Market avg: $70,264/yr · 62% occ · $400 ADR
Financing
$41,998/yr
Operating costs
$32,130/yr
How this property compares to similar short-term rentals nearby.
Comparable set · 50 properties
$229–$742
Median $400
32%–84%
Median 62%
$34.2K–$131.4K
Median $66.3K
166–365
Median 285
This property · $70.3K
Comparable properties (50)
Cash flow potential Medium · Appreciation potential Medium
243 days available · 192 days booked ·
256 days available · 163 days booked ·
304 days available · 214 days booked ·
365 days available · 236 days booked ·
352 days available · 189 days booked ·
365 days available · 201 days booked ·
365 days available · 287 days booked ·
356 days available · 199 days booked ·
261 days available · 169 days booked ·
276 days available · 210 days booked ·
331 days available · 197 days booked ·
365 days available · 226 days booked ·
314 days available · 179 days booked ·
346 days available · 271 days booked ·
243 days available · 159 days booked ·
312 days available · 178 days booked ·
286 days available · 205 days booked ·
288 days available · 182 days booked ·
326 days available · 209 days booked ·
283 days available · 133 days booked ·
322 days available · 227 days booked ·
272 days available · 140 days booked ·
273 days available · 167 days booked ·
320 days available · 165 days booked ·
265 days available · 213 days booked ·
298 days available · 175 days booked ·
347 days available · 236 days booked ·
273 days available · 175 days booked ·
273 days available · 168 days booked ·
261 days available · 123 days booked ·
329 days available · 163 days booked ·
332 days available · 173 days booked ·
269 days available · 166 days booked ·
205 days available · 130 days booked ·
242 days available · 154 days booked ·
293 days available · 147 days booked ·
334 days available · 142 days booked ·
363 days available · 254 days booked ·
273 days available · 152 days booked ·
279 days available · 148 days booked ·
301 days available · 140 days booked ·
240 days available · 149 days booked ·
255 days available · 97 days booked ·
234 days available · 134 days booked ·
267 days available · 154 days booked ·
263 days available · 141 days booked ·
250 days available · 130 days booked ·
244 days available · 84 days booked ·
166 days available · 103 days booked ·
291 days available · 105 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
~$173.2K
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
$636.9K
Break-even purchase price
The deal pencils only if you buy right. At ~9% below the Zestimate the numbers reach break-even — treat that as a negotiation anchor, not a fantasy. Pay asking and the math stops working.
DSCR cash-flow buyer
0.91
DSCR at asking
At asking price the property doesn't cover its own debt service, so it won't qualify for DSCR financing as modeled. If you need cash flow from day one, look at a mid-term-rental fallback or a different Miami submarket.
For a buyer who materially participates and qualifies for the STR tax treatment.
$173.2K
Estimated first-year deduction · range $143.8K–$197.5K
Why this matters here
At a marginal bracket, this deduction can be worth $53.2K–$73.1K 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 -1.9%, DSCR 0.91, cash flow -$3,864/yr
| Price vs asking | Price | Cash-on-cash | DSCR | Band |
|---|---|---|---|---|
| -25% | $526,050 | 4.2% | 1.21 | Positive |
| -22% | $547,092 | 3.3% | 1.16 | Positive |
| -15% | $596,190 | 1.4% | 1.07 | Positive |
| -8% | $645,288 | -0.3% | 0.99 | At break-even |
| Asking | $701,400 | -1.9% | 0.91 | Below break-even |
| +8% | $757,512 | -3.3% | 0.84 | Below break-even |
| +15% | $806,610 | -4.4% | 0.79 | Below break-even |
Break-even price
$636,873
~9% under Zestimate. Where this property reaches 1.0 DSCR and neutral cash flow.
Discount needed
−$64,527
The gap between asking and the price a cash-flow buyer can underwrite.
If refi to 5.5% in 24 mo
+$6,156/yr
Illustrative cash-flow improvement at asking price if rates fall. Planning figure, not a forecast.
Annual avg $5,855 · peaks at $8,027 in Jan
Annual avg 59% · peaks at 69% in Mar
−$322/mo after all expenses
Cash to close
Down payment, closing costs, and furnishing
$203,406
Return on cash:15.3%
DSCR below 1.0 — but you can still qualify
Your DSCR is 0.91 · 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
17.4%
over 5-yr hold, with tax shield
Equity multiple
2.0×
total proceeds vs. $203,406 invested
Projected value at exit
$895,184
year 5 · 5.0% annual appreciation
Tax shield contribution
+6.9 pts
of IRR comes from year-1 depreciation
| Year | Equity | Appreciation | Cumulative cash flow | Total value |
|---|---|---|---|---|
| Year 1 | $180,694 | $35,070 | $60,237 | $276,001 |
| Year 2 | $186,424 | $71,894 | $57,427 | $315,744 |
| Year 3 | $192,568 | $110,558 | $55,687 | $358,813 |
| Year 4 | $199,156 | $151,156 | $55,032 | $405,344 |
| Year 5 | $206,221 | $193,784 | $55,480 | $455,484 |
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 Miami agent who knows which properties actually cash flow — and which to avoid.
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This analysis is generated by Chalet's Airbnb Calculator
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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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