Real Estate Investor · Fort Lauderdale, FL · Member since 2014 · 158 posts · 100 votes
11y
@James Syed you should look at Broward county - there are much better deals to be had, cap rates that make sense, and properties that actually cash flow. Still competitive, but deals are there.
As far as rents are concerned, I agree with you that rentomerter is a good place. but when it comes to price per door, I see a huge gap of asking price vs selling price whether it's local mls or loopnet. I didn't want to pay $250 for 24 hour access to loopnet comps therefore I decided to ask BP members.
Third question is was about location, since Miami is quite a large city, I didn't want to end up in the wrong side of town (D areas), so I wanted to inquire of blue color neighborhoods which are more desirable.
I was surprised because Miami, FL is a hot market especially when it comes to multi family investing and was expecting some replies. Since I didn't get any, it surprised me.
New to Real Estate · Virginia Beach, VA · Member since 2015 · 34 posts · 6 votes
11y
Why are you surprised by no response? Also I'm looking to get into S Fl market but it seems like it's not a popular market on bigger pockets...
I am not shocked. I posted that I am trying to do deals in S Florida and no one replied. I'm on bp every day checking the forums and rarely see anything talking about S Fl
Commercial Real Estate Agent · Miami, FL · Member since 2014 · 21 posts · 11 votes
11y
@James Syed I would like to answer your questions, but they are a little bit vague. Can you describe some of your specifications and I will be able to narrow down the areas for you. How many units are you looking for?
I'm not in the multi market in Miami, so cannot comment on average unit prices. All I know is that whenever I look at a wholesale deal in my inbox, they are way overpriced for the returns that can be generated. I believe this is due to foreign money parking cash in whatever they can get their hands on.
Here are some zips to avoid: 33125, 33127, 33142, 33147, 33150. Generally any areas directly SE, East & NE of the airport.
Residential Real Estate Agent · Miami, FL · Member since 2013 · 195 posts · 138 votes
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James, I'd be glad to help if I can.
Miami is huge. Do you have any areas in mind? In general, anything east and by the water will be too upscale, and most of the rougher parts of town are north.
But I can also save you the trouble and tell you the numbers won't come close to working in any stable, safe, blue collar neighborhoods. Rents here do not come anywhere close to justifying purchase prices. Unless you go warzone, Miami is purely an appreciation play at this point.
I wish there was published list of (A-D) areas where A is the most desirable and D is the least. You could get great advice from local brokers, investors and appraisers, etc.
I am looking for 4 unit or bigger building (possibly up to 12 units). No vacant or projects buildings.
All units must be 2 bedrooms or bigger (No combinations)
In terms of east west north south (if possible) which area would be a good place to start. If it's impossible to go by east west north south, how about desirable neighborhoods.
Thank you for responding. It was very helpful. And YES, I agree that a lot of stuff that I inquired on LoopNet and Realtor.com was really high priced like a unit generating $500 a month and asking price per door was like $100,000.
Thank you again for zip codes that would really assist me in choosing desirable areas.
Residential Real Estate Agent · Miami, FL · Member since 2013 · 195 posts · 138 votes
11y
East is desireable, but you'll hit the ocean.
Southeast is desirable, but again, water (bay).
Your best bet is Southwest, IMO. As far as stability goes. You may also have some luck north (Miami Gardens, or Hialeah), but you'll have to be careful about neighborhoods.
Far out west is mostly recent construction and bad commutes, so higher prices and less demand. Tough combo.
As for rent rates, a 2 bedroom in a decent neighborhood goes for $1000 or so. Call it $800 in the blue collar areas you're targeting. A 3 bedroom in a decent neighborhood goes for about $1300 or so. Call it $1000 in your target zones.
Real Estate Broker · Mount Olive, IL · Member since 2013 · 1k+ posts · 310 votes
11y
Hi,
All BP members,
I have got some great responses and must admit that it has boosted my confidence a lot and in addition, I will not be VAGUE any more.
And special thanks to @Joshua D. for giving all of us such a great platform to ask questions, get answers, analyze, basically everything about real estate for FREE or just a small fee (just think about spending like $5000 a guru seminar). And last, but not least @Brandon Turner is one the that I have learned a lot about valuation on investment properties.
Rental Property Investor · Miami/Jacksonville Fl · Member since 2014 · 75 posts · 41 votes
11y
Great thread, so nice to see investors here in South Florida on BP. It is not all that common. I have been searching for multifamily investments in Miami, a few years ago you could find a couple things now there is nothing worth buying unless you are buying in for the appreciation.
Your best bet is Southwest, IMO. As far as stability goes. You may also have some luck north (Miami Gardens, or Hialeah), but you'll have to be careful about neighborhoods.
Far out west is mostly recent construction and bad commutes, so higher prices and less demand. Tough combo.
As for rent rates, a 2 bedroom in a decent neighborhood goes for $1000 or so. Call it $800 in the blue collar areas you're targeting. A 3 bedroom in a decent neighborhood goes for about $1300 or so. Call it $1000 in your target zones.
I 2nd Robert's advice about the SW. I've had success in an area called Kendall, however, it is A/B and not blue collar but if you connect with a good commercial realtor may be able to find you something to fit your description. Though prices here are appreciating rapidly.
Roseville, MI · Member since 2013 · 3 posts · 1 vote
11y
Hi, James. If you're going to invest in Miami you're going to have a tough time. I just moved from Miami Beach about 2 months ago so I'm familiar with the area. I was there for 6 years. I was trying to jump in the market but it just made not sense to me. This is what I found...
With a Buy and Hold you will be upside down from anywhere of 20-40%. Maint cost are crazy high, taxes are high, and insurance is very very high. **Stay away from class D neighborhoods down there.
You could do a flip or two. However there are many CASH investors all fighting for the same slice of the pie. Most homes sell over asking price and wont even appraise out for loan.
Really the only option that I saw was a speculation buy. Many people have made a lot of money in Miami buying under speculation, but to me that's just way too risky.
Miami isn't talked about much im assuming because if you're going to invest there are many other areas that are much better for investing into.
Owning a home in Miami does have an appeal. I will say that.
Robert, what do you think about in Kendal or Doral. I know its a commute but its not bad if your only using the beach on the weekends and such. Some of my good friends lived out there. They didn't mind it so much.
Real Estate Investor · Fort Lauderdale, FL · Member since 2014 · 158 posts · 100 votes
11y
@James Syed you should look at Broward county - there are much better deals to be had, cap rates that make sense, and properties that actually cash flow. Still competitive, but deals are there.
Real Estate Investor · Boca Raton, FL · Member since 2013 · 42 posts · 23 votes
11y
@James Syed Why Miami. I'm here in Palm Beach County and I'm looking at multis from here to Sebastian. That's where you'll find cash flow, not Miami. I compare Miami with Southern California - LA, where prices I would assume are out of line with CAP rates (probably sub 5%). I'm closing on a duplex in Vero next week with a cash flow of $1,400/Mo and a purchase price of $77k. Nice concrete block with new roof and central air units with two - 2/1s. Right downtown. Doing a light rehab of about $8k and put it on the market for $120k or I'll keep it. Undecided at the moment.