4-unit in Miami advertised at 7.6% cap — but the math doesn't add up.

[Ryan Surjnarine]

I've been analyzing a 4-unit multifamily in Miami and the advertised numbers don't pass my smell test. Wanted to share what I'm seeing and ask the BP community for second opinions.

The listing:

- 4 units, built 1957

- Asking: $1.0M ($250K/unit)

- Gross income: $91.2K

- Reported NOI: $76.1K

- Advertised cap rate: 7.61%

What's bothering me: the implied expense ratio is 16.5%.

For a 67-year-old Miami property in 2026, that seems impossibly low. Florida insurance alone runs $1,500-$2,500 per unit on older buildings. Property tax non-homestead at ~1.8% on $1M = $18K/year. Add reserves for a 1957 building, management, vacancy, repairs — real expense ratio is likely 40-50%.

If I rebuild expenses at 45%, real NOI drops to ~$50K. Real cap rate: 5.0%, not 7.6%.

My read: the seller (or broker) is understating operating expenses to advertise a juicy cap rate. Pretty common in Florida right now.

Questions for the community:

- Anyone else seeing this pattern of understated OpEx in OMs?

- For older Florida multifamily, what's a realistic expense ratio you're underwriting at?

- Am I being too conservative, or right on the money?

Thanks in advance.

[Jeremy Horton]

Of course this is common, they are trying to sell you something lol 

My favorite is the pro formas. I couldn't care less what YOU come up with for projected performance lol