Great Cash Flow Neighborhoods in Miami-Dade County, FL?

Question

I recently relocated to Miami, FL (temporarily, my husband is completing a 12 month assignment here) and I'm looking for great cash flow neighborhoods in Miami-Dade County. I'm focused on wholesaling (as I am in Northern Virginia) and am interested in identifying which subdivisions contain desirable rental product in the area.

Any local investors out there? What zips and areas do you prefer for buy & holds?

Mehran K. · Answer

@Lisa Mauritis No problem! One thing I'd like to add is that you want to include any rehab/improvements required to get the place rent-ready into that "Purchase Price". That will be your full up front investment.

$30k Purchase Price + $20k Rehab = $50k All-in * 2% = $1,000 rent as a guide.

Lisa Mauritis · Answer

Mehran K. thanks for explaining the 2% rule.  I have heard it mentioned many times.

Lisa

Paul Burke · Answer

Thank you Mehran Kamari

Mehran K. · Answer

Paul Burke

Monthly Rent / Purchase Price

Example:

$1000 Gross Rent / $50,000 Purchase Price = 2%

Many people here on the forums use a metric/rule of thumb called the 2% rule. It doesn't apply in all markets, but the higher the percentage the better! Hope that helps!

Paul Burke · Answer

Mehran Kamari I'm new and curious what is the formula to compare rents to purchase price?

Hans Restuccia · Answer

welcome

Mehran K. · Answer

Hi Jessica Swingle!

Not From Florida, but you could try just comparing local market rents to the purchase prices of homes in the area. Compare it with distressed and retail properties. You should be able to easily tell if the neighborhood you're looking at is a cash flow neighborhood if the rents are on the higher end of 1% to 2% of the purchase price.

I'm sure some Floridians will weigh in though!

Great Cash Flow Neighborhoods in Miami-Dade County, FL?

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