Hey y’all. I have been following BP for a long time now and I am in the process of buying a duplex in Norman, Oklahoma next to OU(unrelated to subject). I have a bit of interest in looking for some rental property on Miami Beach. I did some looking through the forms and a lot of the info seems outdated so now I am here with the hope of finding out some more current information. How is the area? How are the people? What advice can you guys give to someone who is interested in that area and knows nothing about Florida?

Patrick

Hi @Patrick Ramirez , and welcome to the BP forums!  Congratulations on picking up the OU duplex -- BOOMER! 

@Alejandro Siguere may have some great insight to add here, especially comparing these two markets.

Hi @Patrick Ramirez , I have been investing in Florida for the last 10 years. There are great opportunities in Florida but it has it pros and cons. From the positive side is that Miami is and international and exotic city, world HUB so the market is huge. Also, in a rising market the housing market will appreciate very well, perhaps much better than many of other States. On the down side since its near the ocean there are higher maintenance costs, taxes and HOA compared to Oklahoma. Even though it is a huge market there are also multiple investors ready to tackle a good deal, so as there are good opportunities there are also a ton of investors fighting for those good deals. Getting the 1% rent to price ratio was much easier in Oklahoma than in Florida. This is a very general idea but if you need more information please let me know and I would gladly explain if I can.

@Alejandro Siguere

Thank you for all of the info and respond in general. It was a spur of the moment thought and I checked out some of the property on Zillow and it looked like it could be in my price range. Think I’ll just stick to Oklahoma for now! Thanks again!

@Will Fraser thank you for the reply and the referral to Alejandro. I appreciate it man.

Mostly condos - can make numbers work with STR; rehabbing & than renting (even for annual lease).

Hello Patrick,
Miami Beach is one of the prime Real Estate areas in Miami, since that it is a prime area it has been built into the price with a premium on the price of the property, your profits may not be so attractive because it is a place so desirable to live in. There are other areas in Miami that you will earn better profits specially if you consider investing as a Short Term Rental, like Little Havana, North Miami Beach and also Little Haiti, those are areas that are developing and the return on investment will be much more attractive.

Miami Beach is a hot market but not always friendly with regulations for vacation rentals. If you do decide to go to that area, you may want to make sure the STR can be converted into a long term rental if rules and regulations change for STRs. I have a great vacation rental analyzer tool I like to use when considering short term rentals in new areas. Message me if you'd like me to share it!

Hi when you say: 

Getting the 1% rent to price ratio was much easier in Oklahoma than in Florida.

Do you mean monthly rent , right? ;) Thanks for confirming. I am just starting in the biz. What's a good ratio? 2%?

Originally posted by @Alejandro Siguere :

Hi @Patrick Ramirez , I have been investing in Florida for the last 10 years. There are great opportunities in Florida but it has it pros and cons. From the positive side is that Miami is and international and exotic city, world HUB so the market is huge. Also, in a rising market the housing market will appreciate very well, perhaps much better than many of other States. On the down side since its near the ocean there are higher maintenance costs, taxes and HOA compared to Oklahoma. Even though it is a huge market there are also multiple investors ready to tackle a good deal, so as there are good opportunities there are also a ton of investors fighting for those good deals. Getting the 1% rent to price ratio was much easier in Oklahoma than in Florida. This is a very general idea but if you need more information please let me know and I would gladly explain if I can.

@Patrick Ramirez I'm surprised you found on-market multifamily in Norman at a good return! What are the numbers like? Sticking to OK is a great plan. Good luck!