Anyone investing in Buildings in South Beach, MIA?

4 Replies

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?

thanks

Filipe

There are no good cap rates in SOBE.

Enough said:)

I will stick to enjoying the sun once a year , staying at an hotel  and  investing elsewhere.

thanks

Filipe 

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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