Looking to invest in a New Development in Miami.
This project features 1 of the 3 buildings with one being ONLY for AirBnb purposes. Supposedly first of it's kind in the Miami market that is centrally managed & has a partnership with AirBnB for super host status from what they say.
Looks like a great project. Wondering if anyone has invested in a new development like that as I've only had experience with existing structure purchases, BRRRR and STR of SFR.
Here is the project:
Looking to purchase a unit for $670,000
Sleeps 4 with approx. 614SF and one of the few units with outdoor terrace and cooking area
From developer:
PAYMENT STRUCTURE
10% @ contract signing
10% in 6 months from contracts
10% @ Groundbreaking - Summer 2024
10% @ anniversary of Groundbreaking
60% @ closing 2/3 Q 2027
Let me know your thoughts here!
From what I've found, Miami as a whole averages approx. 80% occupancy @$300/ night
Appreciate any help here...... as I'm typically one to do the leg work. This is more of a, sit back, we'll do it for you approach.
P.S. My broker bought 2units 2 years ago and has $400k in equity already (approx. 300-400k per unit then)
I have seen that project and I am a little fearful that it is going to cause price competition and from there it is going to be a race to the bottom for who gives the best deal per night and that hurts every owner. But I guess hotels don't normally have an issue- well most of the time. So maybe it will work out fine? It has been an interesting project for sure but I think everyone has to analyze their own risk tolerance and profit projections.
Quote from @Joshua Townsley:
I have seen that project and I am a little fearful that it is going to cause price competition and from there it is going to be a race to the bottom for who gives the best deal per night and that hurts every owner. But I guess hotels don't normally have an issue- well most of the time. So maybe it will work out fine? It has been an interesting project for sure but I think everyone has to analyze their own risk tolerance and profit projections.
If at the very least it pays for itself, I see upside equity potential and/ or resale value there.... and a place to stay in Miami.
Quote from @Brooklyn McCarty:
I don’t think I would ever invest in a metro market.
This would be my first!
Quote from @Thomas Tsitouridis:
Quote from @Joshua Townsley:
I have seen that project and I am a little fearful that it is going to cause price competition and from there it is going to be a race to the bottom for who gives the best deal per night and that hurts every owner. But I guess hotels don't normally have an issue- well most of the time. So maybe it will work out fine? It has been an interesting project for sure but I think everyone has to analyze their own risk tolerance and profit projections.
If at the very least it pays for itself, I see upside equity potential and/ or resale value there.... and a place to stay in Miami.
Also very fair points. By the time they finish building it anyways the property values will have likely doubled at the rate we are going down here... and a new vacation home is never a bad thing lol
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#1 Short-Term & Vacation Rental Discussions Contributor
- Olympia, WA
Nope. You might as well just buy into an REIT.
It sounds like you have very little control over most things. Also, their PDF download links are broken so I can't read anything about it.
Quote from @Thomas Tsitouridis:
This project features 1 of the 3 buildings with one being ONLY for AirBnb purposes. Supposedly first of it's kind in the Miami market that is centrally managed & has a partnership with AirBnB for super host status from what they say.
Looks like a great project. Wondering if anyone has invested in a new development like that as I've only had experience with existing structure purchases, BRRRR and STR of SFR.
Here is the project:
Looking to purchase a unit for $670,000
Sleeps 4 with approx. 614SF and one of the few units with outdoor terrace and cooking area
From developer:
PAYMENT STRUCTURE
10% @ contract signing
10% in 6 months from contracts
10% @ Groundbreaking - Summer 2024
10% @ anniversary of Groundbreaking
60% @ closing 2/3 Q 2027
Let me know your thoughts here!
From what I've found, Miami as a whole averages approx. 80% occupancy @$300/ night
Appreciate any help here...... as I'm typically one to do the leg work. This is more of a, sit back, we'll do it for you approach.
P.S. My broker bought 2units 2 years ago and has $400k in equity already (approx. 300-400k per unit then)
Hi @Thomas Tsitouridis I think you are referring to West 11th, e11even residences is sold out.
Let me know if you have any questions I have a client under reservation right now.
West 11th is the building partnered with Airbnb. They launched sales 2 weeks ago and are already at 45% contracts.
Send me a message if you have any questions, I can be your local boots on the ground.
Quote from @Joshua Townsley:If you are an investor and you buy a Miami condo, you normally have two options: sell it upon delivery and never use it, or rent it long term and never get to use it yourself. With short-term rentals, you can rent it and get to use it yourself, and somebody else is paying for your property.
Quote from @Thomas Tsitouridis:
Quote from @Joshua Townsley:
I have seen that project and I am a little fearful that it is going to cause price competition and from there it is going to be a race to the bottom for who gives the best deal per night and that hurts every owner. But I guess hotels don't normally have an issue- well most of the time. So maybe it will work out fine? It has been an interesting project for sure but I think everyone has to analyze their own risk tolerance and profit projections.
If at the very least it pays for itself, I see upside equity potential and/ or resale value there.... and a place to stay in Miami.
Also very fair points. By the time they finish building it anyways the property values will have likely doubled at the rate we are going down here... and a new vacation home is never a bad thing lol
Quote from @Michael Baum:
Nope. You might as well just buy into an REIT.
It sounds like you have very little control over most things. Also, their PDF download links are broken so I can't read anything about it.
That's what I don't like. Not having control, which is why I am hesitant.
Quote from @Joe Biscaha:
Quote from @Joshua Townsley:If you are an investor and you buy a Miami condo, you normally have two options: sell it upon delivery and never use it, or rent it long term and never get to use it yourself. With short-term rentals, you can rent it and get to use it yourself, and somebody else is paying for your property.
Quote from @Thomas Tsitouridis:
Quote from @Joshua Townsley:
I have seen that project and I am a little fearful that it is going to cause price competition and from there it is going to be a race to the bottom for who gives the best deal per night and that hurts every owner. But I guess hotels don't normally have an issue- well most of the time. So maybe it will work out fine? It has been an interesting project for sure but I think everyone has to analyze their own risk tolerance and profit projections.
If at the very least it pays for itself, I see upside equity potential and/ or resale value there.... and a place to stay in Miami.
Also very fair points. By the time they finish building it anyways the property values will have likely doubled at the rate we are going down here... and a new vacation home is never a bad thing lol
Makes sense, just like my other STR's.
Would make sense if you can set it up properly - use efficient & effective management and make it more interesting / exciting / instagram-able then the competition. "Be different" and your investment will do well (even if the competition doesn't). Happy to share additional ideas - lots to consider!