Have 80k cash to invest in Miami in real estate, any suggestions?

20 Replies

Looking for any advise on whats the best option to invest 80k in real estate in Miami (not looking to purchase a property to rent)

Kenye. 

So you're interested in finding a fix and flip then. I'd recommend finding your team first, so find a realtor and a contractor who can do some work for you. Then begin to analyze deals. When you find the right one you'll be able to use your $80k for that project and fund the rest of the project through a HML.

@Antoine Martel thanks for your suggestion, i guess the difficult part on the team is to get a contractor that is willing to go with you and inspect a property every time that something comes up. Yes the 80k are only for the property itself, there is something else apart to invest in the rest of the project.

Originally posted by @Kenye Serna :

@Antoine Martel thanks for your suggestion, i guess the difficult part on the team is to get a contractor that is willing to go with you and inspect a property every time that something comes up. Yes the 80k are only for the property itself, there is something else apart to invest in the rest of the project.

 Yes those people are hard to find. They need to know you're legit. I would recommend building a relationship with them so that they are willing to go and walk projects with you. Or... put a property under contract and then call some contractors out to the property. 

Kenye,

Take into consideration a 4.5% closing costs at entry and a 7.5% at exiting...that’s a very close approximation. Also, if you go for an REO apt, first try to find out what’s the HOA status of that property, even thought there’s certain state laws that will protect you, HOA will give you hell to try to get there money and you ll have a very complicated flip on your hands... cheers!

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I would like to follow up with am new to investing as well. How do you know what is a good deal in reference to the rental income to the purchase price? What is a good percentage to earn on the return

80k isn't going to get you much in Miami. Very tight market.

Kenye, let's talk. My wife and I are looking at some deals where we know we can get private lenders, but very often they will only fund 70%, so we need that extra 30% to do the deal and we are low on cash at the moment. 
We're looking for someone we can trust to go in on a deal with us. Interested in having coffee? 

@Lau Jacob Just to clarify a "GOOD DEAL" is more than just the rental income.. Where the property is located, how old the property is, etc , etc those are just some examples of many that determine a good cash flowing deal. 

That is a formula you must create for yourself. Everyone has their own based on preferences, financing and other variables it's not an easy answer BUT I went ahead and made this template to give you an idea of how I personally do mine. 

I take 50% of the gross earnings and whats left is what i do my numbers with. If it cashflows at -50% it'll cashflow with the actual numbers. Always better to be conservative and not force your way into a deal..

To answer your second question "What is a good percentage to earn on the return?"

The question should be HOW MUCH DO I HAVE TO MAKE. 

That's completely up to you. What are you okay with getting in return? How did you structure your deal? Did you get financing? Have partners? etc.. 

The average "DEAL" that I believe most investors are fine with ranges anywhere from 6%-10%. 

I personally won't do a rental unless it's making upwards of 15%, extremely hard to find but if I'm going to deal with tenants it better be worth my time because my primary source of investing is flipping.

Regards,

Hope I was able to guide you in the right direction.

-Andres

@Andres Calderon I'm assuming these numbers are completely made up just for sake of discussion correct? There definitely haven't been any $350k properties generating $60k+ gross rents here that I've ever seen at least in PBC.

@Andres Calderon Wow I'm surprised you're finding deals like that in Miami. They must be in very rough areas. There is nothing even remotely close here in PBC.

@Brian Garrett  

Sorry ! thought PBC was BPC (bigger pockets community)

No that was up north near Orlando. If you want some good rentals you have to leave this 

tri-county area. Only properties worth purchasing here are found at the auctions. 

@Andres Calderon thanks for the info I will need to create that excel today!! Have you done any out state investing?

Nick Britton .... That statement shows your ignorance, lack of knowledge and in return showing your limited amount of success also shows what kind of deals you find.  A real Professional AND educated person would have asked me where and how I was able to find deals like that...after all that is what this website is for to share knowledge but based on our conversation alone in my DM that would be expecting to much from you.

Once again good luck on YOUR investing career nick.

@Lau Jacob Of course ! It was my pleasure glad it was of help to you try to keep your template simple though. In the US outside of florida not that many just in Colorado and Texas but as a passive investor.My second market besides florida is Colombia, I do a good amount of new construction there. It's mostly smaller resorts for tourists but I also do long term rentals in there for select locals.

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