Updated about 5 years ago on . Most recent reply
South Florida Investors
Hey all! I am from Miami Fl, specifically the Homestead area. I was wondering if there are any investors here in my area. Miami is an expensive market so what “works” in this area? Fix and flip? House hacking (though I doubt it)? I would love to hear from those with experience.
Most Popular Reply
Hey @Evelyn Castillo I am also close by in the Redlands... I completely agree with @Timothy Lewis The market and prices are currently out of control! Even a small single family home in the Homestead area (which is cheaper than most of Miami-Dade) will run you $300k easily.
So going the FHA route with closing costs, you are still looking at around $22,000-$24,000 to get into something. That is not a huge amount but for a first time home buyer, it can be a challenge to many. Don't forget the bidding wars that are also going on now with the extreme lack of inventory & excess amount of buyers. Many nice homes are receiving 15-20 offers and selling significantly above list price with appraisal contingencies waived. With that in mind, a $300,000 house in Homestead likely will not generate any profit for a house hacker. If you are lucky, you can create a separate in-law quarters or efficiency like Timothy suggested but that will only cover about half of your mortgage.
If privacy isn't that big of an issue for you, you can always rent out rooms for a better ROI. It isn't for everyone though. In South Miami-Dade, you can get between $700-$1,000 for a private room with shared access to bathrooms & kitchen. Hope this helps!