Bubble again in Miami-Dade

15 Replies

I'm ready, willing and able to invest in a triplex in Miami. However, there is again a wave of speculating on the high-end properties. It has already  trickle down to middle and lower middle class  areas.  Duplexes that used to sell  approximately for $100.000 just last year are now for sale at $186.000. My question : Should I wait for the mini-bubble to burst and then invest (2 year wait maybe?) or just go ahead and buy a these speculative prices for the sake of being a rental property and an investment.

Thnq,

Jose

Welcome @Jose Gonzalez . Don't rush into a deal right now if the numbers don't make sense...the deals are out there and even in Broward. Have some patience and it will workout .

trying to get into this bad but can't find any deals as far as loans any good suggestions

Be a disciplined investor. Time your investment based on market conditions, not just because there is product available.

@Jose Gonzalez I am new to this world, I've been studying a lot, when hear about the really good deals that were made just 3 years ago, it makes me a litter sad, but, this is the moment I choose to became a REI, so, I have a lot to do in front of me, looking forward, what I do is trying to analyze mls deals using bigger pockets analysis tools and see if the number make sense, with my lack of experience there are some deals that still can work, in theory, but I know I have a lot to learn about evaluating deals.

I also like the idea of buy and hold, while getting positive cash flow, from the beginning, the market fluctuations does not really affect your property value, till you are ready to sell it.

I am ready, willing, but not able yet to buy mi first deal, but when I get there, I won't be waiting for the market to be better, I'll keep looking till I find a "decent" deal to put my money to work for me and/or with me.

Don't get me wrong I may take more Than 2 years, but I doubt it, deals are been made in Miami today, Is a fact, I know a couple of investor doing it. What do you say @Nick Britton are they any deals happening that you are aware of?

Cheer @Tommie Walton  

Take care!

@Joel Rodriguez Legit deals get swooped up within 12 hours.. I'm seeing the Northern Broward(pompano, Deerfield ) and southern Palm Beaxh (Delray, Boca, Boynton,) have some decent numbers.

Originally posted by @Nick Britton :

Welcome @Jose Gonzalez. Don't rush into a deal right now if the numbers don't make sense...the deals are out there and even in Broward. Have some patience and it will workout .

 Thank you Nick for your advice. I appreciate your input!

Regards,

Jose

Originally posted by @Tommie Walton :

trying to get into this bad but can't find any deals as far as loans any good suggestions

 Between banks and credit unions I would check the array of credit unions in Miami . CU offer lower points when it come to mortgages. They are usually more flexible than banks since you are a member as well of that particular CU. 

Great luck and keep looking till you find that great deal!

Originally posted by @Jacqueline Carrington :

Be a disciplined investor. Time your investment based on market conditions, not just because there is product available.

 Thank you Jacqueline for your advice! I think I'm going to search in Broward county (north of Miami). The market there  seems to be more stable. 

@Jose Gonzalez  I 100% agree with @Nick Britton . Don't speculate - save the speculation for the stock market. If the numbers don't make sense right now, don't do the deal. 

That said, I don't think you need to wait X years or for the "bubble to burst". There's various reasons why the prices are climbing, but I don't think it has anything to do with a bubble. There aren't a bunch of bad loans being created which are doomed to fail in the next few years...It's just a matter of supply and demand, and I don't see any massive changes in supply that would make a big impact.

The deals are there, they are just hard to come by. The good deals fly off the shelf in a matter of a couple days, the great deals even less. My parter, my assistant, and I spend 120+ hours a week doing various things to chase good deals. Just have be diligent, patient, and move fast when an opportunity does arise. 

Don't be discouraged, and good luck!

@Jose Gonzalez

There is no 'perfect' time to buy.  If you wait you will miss out on deals that were worth buying.  The most important aspect is to take action.  It is easy to get caught up in analysis paralysis.  

If the numbers make sense pull the trigger and take the leap!  The longer you wait the longer it takes to reach financial freedom.

@Jose Gonzalez  There are deals to be found in any market--even an up market. If you invest in solid cash flow and purchase your property at a discount, you will be safe no matter what. You may have to lay low during a down market and operate conservatively if you bought in an up market, but you will get through it (and also be buying more property in the meantime), but like @Nick Britton said, if the numbers don't make sense, it is not a deal to be made, regardless of market conditions. 

Hello Jose,

You can not time the market. If your numbers work make the deal especially with rentals.
As long as you have a positive cash flow.
Originally posted by @Jose Gonzalez :

I'm ready, willing and able to invest in a triplex in Miami. However, there is again a wave of speculating on the high-end properties. It has already  trickle down to middle and lower middle class  areas.  Duplexes that used to sell  approximately for $100.000 just last year are now for sale at $186.000. My question : Should I wait for the mini-bubble to burst and then invest (2 year wait maybe?) or just go ahead and buy a these speculative prices for the sake of being a rental property and an investment.

Thnq,

Jose

I am curious what area of Miami you are considering @Jose Gonzalez

If you get fixated on Miami prices 3-4 years ago you will never buy anything. In 2011 I bought a one bedroom condo for $56K. In 2014 bought another in the same building for $91K and was concerned I was over paying and almost didn't go through with it. Two months ago the same unit sold for $165K. Buy smart with plenty of cash flow and you will be fine long term.

In any particular market, there are always going to be issues: If it's going up, you may encountering overpriced properties. If it is down, you'll buy at one price today and the ARV in a couple of months may by lower and your profits may be gone.

Now, deals may come and go but consider that as you said, there are people doing it right now regardless of the market condition. Focus on the number, make dozens of offers based on your numbers and make it happen. You are the one that can make it happen, not the market

Good luck!

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