Investor · Alexandria, VA · Member since 2016 · 859 posts · 460 votes
Hi BP,
My brother will be moving to Miami, FL to pursue his career following college. I am trying to take this opportunity to study the market and purchase my first FL investment property. Any suggestions on location, safety. Market trends? I'd like to purchase a multifamily but it seems like they are flying off. I am looking at condos, thoughts? He will be working in Brickell, FL. 8th St. to be exact.
I would say that here in South Florida the market is best for cash flow properties. However, I would say fourplexes or more, based on the rent rate some area demands. You can purchase a fourplex in pompano right now for 400k with no rehab needed and if its a 2/1 each unit suggest 1200 per month. I would say the market here is not ideal to purchase single family house and flip (unless at auctions) but fourplexes and above surely will help you with cash flow starting out. There are some investment groups down here that do joint ventures (rental property) as low as 5k with annual returns of 10-15%. I would highly advise to stay away from condos. Most conds down here will not allow you to rent within thr 1st year of purchase and more HOAs that will let you sub-lease, their monthly fees are too high. I hope this was informative. I would like to hear others thoughts on your topic.
Specialist · Marco Island, FL · Member since 2016 · 225 posts · 56 votes
9y
I have done NO research in the Miami area. I decided to leave that entire microclimate alone. Too many people close together who want the same thing.. However, When I was about to move to florida, I thought if I want Miami i would look into Homestead first... Close enough to party, far enough away to breathe and find property...The same geographical beach AND closer to the keys. But google shows me a bunch of farmland. Soo.
Real Estate Agent · Portland, OR · Member since 2014 · 16 posts · 5 votes
9y
If you're going to invest in SFL, Miami isn't great for cash flow. 3-4 years ago absolutely, but now even in a neighborhood like Allapattah (Lower-middle class Dominican area) where I grew up, you're looking at 300K+ for a 4 Bed- 2 bath duplex that will only gross $1800 per month. If you look in South Miami the prices get ridiculous (Coral Gable, Kendall, Little Havana). $450K+ for a duplex that gross $2300-2600. I would recommend looking north of Miami. Broward County is much better for cash flow right now. Rents don't change much from Miami but prices are much lower so there is a better chance for cash flow. Miami has reached levels pretty close to 2006-2007 prices right now. Condos are in the same boat plus you have to deal with HOA's (ugh). If you plan on buying a condo in Miami Beach, don't plan on cash flow. That is more speculating and given where the Miami market is right now vs the height of the market back in 2007.... That would be up to you and how risk adverse you are.
I would say that here in South Florida the market is best for cash flow properties. However, I would say fourplexes or more, based on the rent rate some area demands. You can purchase a fourplex in pompano right now for 400k with no rehab needed and if its a 2/1 each unit suggest 1200 per month. I would say the market here is not ideal to purchase single family house and flip (unless at auctions) but fourplexes and above surely will help you with cash flow starting out. There are some investment groups down here that do joint ventures (rental property) as low as 5k with annual returns of 10-15%. I would highly advise to stay away from condos. Most conds down here will not allow you to rent within thr 1st year of purchase and more HOAs that will let you sub-lease, their monthly fees are too high. I hope this was informative. I would like to hear others thoughts on your topic.