Hi all, does anyone have experience in investing in small apartment/condo buildings in South Beach,Miami ?
I was wondering if there is anything in the market for less than 500/700k with good cap rate. My feeling is that there isn't many multi family properties in south beach, maybe mostly are old/new condo buildings and hotels?
There are no good cap rates in SOBE.
I will stick to enjoying the sun once a year , staying at an hotel and investing elsewhere.
We looked around down there in 2011 and 2012. We saw some tiny condos in the $200-250K price range. We weren't ready to pull the trigger at that point, though, and weren't sure we wanted a tiny condo even if it was close to the beach. In hindsight, we should have bought something - anything! This was just for individual condos. Didn't really see any full buildings for sale.
To really make money have have good cash flow/cap rates in South Beach, you need to find multifamily buildings zoned for short-term and cash in on the short-term vacation rentals. I manage a 10 unit multifamily for a client of mine and he makes great money on short-terming all 10 units with a heavily advertised marketing program that I sent him up on all the vacation rental websites. Long-term multifamilies in Miami Beach don't really cash flow well as the price of acquisition is very high.
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