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
@Charlie DiLisio Charlie if you're looking for a buy and hold I may be able to help. Are you a buy and hold investor? If so, what are you looking for in terms of return?
As far as finding decent cash flow deals, we need to speak to about 50 or 60 sellers to find something that works in terms of CAP rates in Palm Beach County and points north (8-10 % after management, vacancy, taxes, insurance and capex is what I'm referring to). They're around, you just need to know how to find them (read: our special sauce), but they are definitely harder to dig up now. A year ago, we were shooting fish in a barrel. Now we have the nationally know gurus sucking in the masses at precisely the wrong time to enter the market as an investor, and they're inundating the market.
You, along with some others, have given me a very valuable information by suggesting to invest some distance away from Miami like Palm Beach County area.
I was told by one commercial broker few days ago that in Miami, I will have to pay a minimum of $80,000 a unit and that is just a start and decent property will cost me about $130,000 a unit and that will NOT work for me as it would kill any cash flow hope.
By the way great job on the Duplex purchase, you nailed that one. Do you have any idea as to which areas / zip code is good in Palm Beach county?
Investor · Lake Worth, FL · Member since 2014 · 378 posts · 184 votes
11y
No deals in Miami, too far to do rehabs and I have been there many times but I think the area is saturated and overpriced at this time. I am in Palm beach county but I am interested in conversing with Frank about the areas north of me. He seems to have been very successful up there. I will be contacting him today at some point. Have a great week.
Hialeah, FL · Member since 2015 · 2 posts · 0 votes
11y
James
I really believe you should get a better lay of the land. "Blue Collar" may not be the perception of blue collar your thinking of. A better view may be Family Neighborhood, Family Suburb, Entertainment Area, Luxury Suburb, Miami Beach & Luxury Miami Beach, Arts District, and in-between all those areas are the Hood.
South Florida is a Tri County area consisting of Miami-Dade, Broward, and West Palm Beach county. Broward and West Palm has more strictly Family areas where people rent for a reasonable price in "safer" areas. The rent goes up because unlike in Miami entire families stay in a "multifamily" properties $1300 - $2600 for a 3-2, gated community $1500 - $2200
Understanding Miami 1000 a month puts you in a not as desirable and reliable area. The desirable areas are more on the expensive side for "Blue Collar". Coral Gables, Miami Shores, Aventura, Pinecrest, Palmetto Bay, Downtown, Brickell (& Mary Village), Mid Town, Miami Beach (Vacation Tourist Attraction), Wynwood (Arts District), Miami Lakes, Doral..... Studios 0 Beds 1 Bath in Coral Gables start at $2100 on the edge.
From a Investment stand point, Miramar, Pembroke Pines, Coral Springs, Sunrise, Cooper City, Hollywood and Hollywood Beach, Plantation, Coconut Creek, Dania in Broward County will have better comps. In Miami you invest in the area.
I am a real estate investor in Miami Beach and may of the points made here about the Miami market are correct. From a capital appreciation standpoint, Miami is a great investment market and I have made some great returns on appreciation alone. It's all about finding the right deal, at the right time (under market value) and having the liquidity to close quickly. As a remote investor like yourself, this becomes increasingly difficult as the Miami market is very competitive from both local and international competition. Having a good agent/broker or partner/investor that you trust on the ground and that is an expert in the market you are seeking an acquisition for to alert you on good opportunistic deals will certainly help.
Reading your goals, I think Hialeah will be the best investment market for you if you wish to stick to Miami. It is an extremely strong rental market, with lot of multifamily opportunities, and deals can be found. However, a lot of deals in Hialeah are conducted off-market and word of mouth due to the large Latino population.
If you have any questions or would like a great agent/broker referal let me know!
Rental Property Investor · GA · Member since 2015 · 30 posts · 10 votes
11y
James,
I just opened this account on BP yesterday and am surprised about the lack of activity about the magical Miami market on here especially considering how active the SouthFlorida market is now.
Areas that are steadily appreciating in Miami:
West Little River - highest appreciating area in Dade (most Miami-an county) right now. Complete gentrification.
Lemon City - also known as Little Haiti (the Design District is creeping up on it -) I just sold two fourplexes here within 24 hours of them being available for sale.
Little Havana - soon to be renamed as West Brickell ( Google Brickell - Miami's Manhattan) the property here is still cheap (not for long) and rental incomes even as the turnover occurs is very decent but it's about to blow UP! I have investors inquiring after Little Havana daily. (sold a triplex last month - value has already appreciated) as well as a great cap- rate. It's an island of lucrativeness as it is surrounded on all sides by top-market areas.
I'm going to leave it at that even though there are other extremely viable investment areas of Miami because I'd sit here all day.
Miami, FL · Member since 2015 · 48 posts · 16 votes
10y
Hello All, Miami is very pockety. Even those zip codes are not all D areas. There are some very nice pockets in those areas.
As in all hot markets- the best deals are off market.
I will repeat- the best deals are off market.
Start marketing and cold calling to get some deals anything a broker or realtor will bring you will not work in this hot market as prices are getting bid up by foreign capital.