Yep, condos on the beach in Sobe or Sunny Isles are $1440/sf and up, with probably$1000/mo COA fees.....not going to make cash flow sense.
For Buy and Hold it should be Hollywood Beach (Broadwalk or City center "Young Circle"), Hallandale or Dania Beach... in that particular order. Cap rate maybe not the highest for the moment, but apprecvation is. Exactly for those looking for long term investment. Make sure the property can be rented right away (some require 1-2 years or ownership before). Be pre-approved, as the majhority of deals are cash here.
@Michael Rashfal I am about to close on a condo in Boca Raton. The seller has been renting several on the street, under market value to college students. It is currently vacant so my plan is to raise the rent and rent it per room to college students as it is right near FAU. Renting it by room with raise the total cash-flow per month rather than renting it out as unit and helps to off set the HOA fees. Have you looked at any condos near college students? I also recently started property management company in South Florida, feel free to message me with any questions.
I've heard horror stories about condos and their HOA's. The firm I work for doesn't even consider buying them to hold as rentals. Unless it made amazing financial sense to do it and you had very clear exit strategies , I would stay clear of them.