Looking to buy a condo in Miami for short term rentals. The condo market seems to be on a downturn and prices seem to be at a point where a decent profit can be made on Airbnb even after the high condo fees (atleast on paper). Currently looking at Opera towers, Grand, 1200 Brickell which are few buildings that allow daily rentals.
Would like to hear thoughts and experiences of fellow investors in the area. Is this a right time to buy or should i wait ? Does Airbnb makes sense ? Is anyone else thinking or currently doing the same ?Any other buildings apart from the above that are good candidates ?
Check the pricing and occupancy on ABB of the condo you want to purchase to see what you can expect. MIA has very tight STR rules, practically outlawing them. Make sure to double check the zoning and licensing.
I would be leery as crap of the condo market in MIA.I think it's just starting to take a crap. It will take at least a couple years to see it bottom (in my view).
Care to share your estimated numbers?
Hi Josh. I looked at Opera towers in Edgewater. I am no expert but have made below basic analysis
1 bed costs about 275k and rents for 150 a night on average. Assuming 50% occupancy u can make $2250 a month. Expenses including mortgage, hoa etc assuming 30% dp are $1700. So annual profit is $6600 on an investment of 80k.
Now the prices are expected to drop further so not sure what to do atm.
@Amit Shah that's 2250 a month but then you still have debt coverage (mortgage/property tax). From what I've seen of that area, you're HOA is going to be $800/month. That's not even getting in local governances on STR. Not trying to discourage you but why not look at the design district on Buena Vista, less HOAs. Send me a PM if you would like to discuss further
From what I understand Miami is one of the top 6 "red zones" as in do not do it. Brian Page was on Grant Cardone's podcast recently and this was talked about. Obviously Brian Page is doing what he does and that's a whole different thing.
I'm planning to do the the same, and have seen some pretty good options in the buildings you mentioned. The other alternative I'm considering is South Beach, where the HOA is much less due to fewer (if any) building amenities. So it kinda depends on your target tenants versus other areas like Brickell or Downtown. I see it as two different people: beach vacationers vs the everybody else (business, festivals).
Zoning is super tricky. You can get fined up to $20k if you're caught by the city. Make sure the building is in the right place, and the HOA allows for STR.
Found this on mashvisor when researching Miami airbnb.
Thinking of looking at Miami for vacation home and Airbnb as well but sounds like not a good start here based on everyone’s comment. Any other nearby areas that we should consider?
Did anyone take the plunge and invest in Miami for an Airbnb? If so, how are things going for you? I am a super host based out of Brooklyn. Since things have basically been shut down in Brooklyn I invested in Philadelphia and now I'm looking for another place to invest. Thanks!
I am closing on an duplex I am going to airbnb in January
@Branden Rivero How are the airbnb laws where you invested?
@Od Ntuk My city, Austin, has strict STR laws as well. I switched my strategy to be 30 day minimums. I don't get the same rents but I'm making double LTR rates.