South Florida real estate

7 Replies

New to the idea of investing in real estate in south Florida. Many questions regarding the market and open do ideas to make money here. It feels like property here is already overpriced as it is and deals may be hard to come across. Looking for advice or guidance on potential investing strategies that are working given the current market here. All and any advice is appreciated.

Many major metros are "overpriced" for newbies because you cannot take advantage of economies of scale, so your choices are lower your profit standards or find a different market.

@Aaron K. Thank you for your input. I suppose getting wrapped up in large profit margins should not necessarily be a main focus at this stage of the game. In your opinion would investing in a townhouse/condo with a very minor rehab be such a bad idea. Say i invested in a rental property for 100k with 20% down to avoid mortgage insurance and put another 5-7k in rehab. If my mortgage was 900 and i was able to rent for 1300. Is this in your opinion not worth the risk? What factors am i really needing to hone in on to make the most out of a deal like this. Not that I'm impatient to make a move. I'm really just trying to educate myself on the subject. Thanks again

@Christopher Butterstone the problem with that scenario will be the HOA fee, once you account for insurance, property taxes, etc. and tack on a couple hundred in HOA fees your cash flow is gone. A deal that size is certainly worth it if you can get a large enough return on your money, but HOAs eat profit for breakfast, although some investors make it work.

@Aaron K. Yeah. The HOA fees are atrocious. Even in neighborhoods that are not even c material. I guess this is where the investor in me will have to be patient. The whole reason I've gotten in to this was because of my house. We got at a great price in the neighborhood. We spend way more on the "rehab".(this is our home so i didn't consider it that at the time). But one day we got new neighbors and all of a sudden they're renting next door, which isn't nearly as nice for 1650. Our mortgage with hoa and we still have MI is only 1100. In my mind right now that's still a decent cash flow. I suppose the right deals are out there. The good news is I'm not eager to jump on something. This will give me plenty of time to store some cash and continue to educate. Thanks for your input.

@Christopher Butterstone Another issue that condos can have are special assessment fees.  These are fees decided by the board that apply to all residents of the condominium and are added onto the rent for various reasons.  I have heard stories from some family members who rent from a condominium and their board tacked on a large assessment fee to pay for a new roof as well as other things that needed to be fixed.  It all depends on how the board of the condominium assigns the fees.  

That being said, welcome to BP and good luck with your education on REI!