You've been waiting for Florida to hand you a discount. Now it has — a turnkey rental in Punta Gorda listed 10% below last year, in the worst-declining metro in the state. It looks like catching the floor. Then your own insurance quote comes back at more than double what the seller pays, and the deal quietly changes shape.

Host Martin Maxwell walks the actual numbers: a 5.75% cap that becomes a 4.6% cap the moment real insurance is priced in — against 30-year money at 6.5% that costs 7.58% once principal is in the payment. That's the loan constant, and it's the number a cap rate actually has to beat. This deal fails both tests for negative leverage at once and takes $3,100 a year out of your checking account. Three options — fund it, walk, or reprice and mitigate. Hit pause and decide before he does.

The one lever that's genuinely yours is the insurance itself: shopping carriers and pulling a wind-mitigation credit can cut a Florida premium 20–40% — forced income you control, not a recovery you're waiting on. Run your own deal at the rate you can actually get in the cash flow calculator.

The full write-up — all three options with the math side by side — is on the scenario page.

Thank you for tuning in to the 5-Minute PRIME Podcast! Ready for more tips to master personal finance and real estate investing? Visit REIPrime.com for additional resources and strategies to build your wealth. Don’t forget to subscribe, leave a review, and share this episode with someone looking to level up their finances. Follow us on social media for daily updates and more actionable advice!