New to Real Estate · Cambridge, MA · Member since 2019 · 2 posts · 2 votes
Hey everyone - as the title says, I'm hoping to get some advice from anyone who's been successful renting condos in the Brickell, Miami area. My goal is to purchase this summer to live in short-term and then rent out afterwards, and broadly it seems the numbers are pretty rough. I've got a good grasp of the basic market but have less of an understanding of some particulars of Brickell, incl. long-term expected condo maintenance costs, good rent/purchase ratios, navigating potential new construction (such as that giant complex going up behind the church), and some proposed environmental changes (such as the seawall)
Obviously not looking for answers on everything, just hoping to chat and understand how successful investors are thinking through the short and long term. If anyone is available feel free to DM me anytime
Investor · Miami, FL · Member since 2017 · 229 posts · 271 votes
4y
Hi John,
I invest in little havana and the surrounding neighborhoods of Brickell. However my current day job is based out of Brickell Key and I lived in Brickell for a few years when I first moved down to Florida from MA.
Brickell is a very difficult area to try and approach conventionally. On the one side you have rents which are at all time highs and definitely serves as a plus for investors. Today you can't find a 1/1 for under 2K a month which is absolutely ridiculous. However price points at this stage in the market are really hitting the stratosphere. Even basic 1/1s are starting at low 300's and up.
As if the price wasn't obstacle enough you've also got to factor in the HOA which will probably run close to 500 a month for a 1/1. For bigger units in nicer buildings they can easily run from 800 - 1200 a month!
All this is not to discourage you but to say that investing in Brickell is really much like trying to find decent returns in the Bay Area or downtown New York. Is it possible? Definitely but you're really needing to find a personal opportunity (relationship, distressed buyer, other knowledge) that allows you to get some kind of discount because otherwise you'll be grinding out some serious holding costs in the duration that your asset is appreciating.