Miami Condo (Allapattah Buy and Hold)

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Miami Condo (Allapattah Buy and Hold)

Jason Brown
Investor · Miami, FL · Member since 2017 · 229 posts · 271 votes
Investment Info:

Condo buy & hold investment.

Purchase price: $300,000
Cash invested: $90,000

Nice 2/2 condo in very high demand area in downtown Miami. Idea was to secure favorable mortgage before rising rates while also leveraging extremely competitive rental market.

What made you interested in investing in this type of deal?

Ideal location. Strong comps based off of square footage and bed/bath count. Ability to command a premium on rent due to real scarcity of inventory.

How did you find this deal and how did you negotiate it?

Found on MLS. Negotiated with a realtor.

How did you finance this deal?

Conventional

How did you add value to the deal?

Was able to negotiate discount on deal due to owner needing to sell and being willing to accept current tenant at below market rate for another 5 months.

What was the outcome?

Strong rental comps in area well above 3K monthly.

Lessons learned? Challenges?

Condo financing and due diligence can be challenging but it's you should look to leverage all the established HOA and property management have in the form of systems, processes, and advice.

2Reply
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  • Dmitriy Fomichenko
    Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
    4y

    Nice @Jason Brown !

    0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    4y

    So, what's your ROI and Cash-on-Cash?

    [email protected]248-209-6824
    Logical Property Management4.9460 Reviews
    WebsiteView Page
    0Reply
  • Jason Brown
    OP
    Investor · Miami, FL · Member since 2017 · 229 posts · 271 votes
    4y
    Quote from @Drew Sygit:

    So, what's your ROI and Cash-on-Cash?


    Well I self manage but my CoC after reserves and vacancy is 11%.

    1Reply
  • Pierson Tedeschi
    Rental Property Investor · Miami, FL · Member since 2017 · 19 posts · 10 votes
    4y

    Thats a nice coc number. Out of curiosity, what year was the building built? The reason for the question, is that after the Surfside collapse, the county is being extremely strict with 40 year recertifications. If the building hasnt done that yet, I would put a little aside each month for when they do. 

    Happy Investing

    0Reply
  • Elizabeth M.
    Canada · Member since 2021 · 5 posts · 1 vote
    4y

    That's great, Jason  - congratulations:) I learn alot from your posts & posted deals. 

    Is this a building/area that allows you to convert to STR, if you chose? (Although it sounds like long term rental is your plan)

    As how some Miami municipalities and/or condo boards are getting hardline on that, curious as to if you have that option in this condo property?  

    Elizabeth 

    0Reply
  • Jason Brown
    OP
    Investor · Miami, FL · Member since 2017 · 229 posts · 271 votes
    4y
    Quote from @Pierson Tedeschi:

    Thats a nice coc number. Out of curiosity, what year was the building built? The reason for the question, is that after the Surfside collapse, the county is being extremely strict with 40 year recertifications. If the building hasnt done that yet, I would put a little aside each month for when they do. 

    Happy Investing


     Hey Pierson,

    The building was built in 1986. Yea I actually sold a studio in Miami Beach about a month before the collapse. I did review the HOA docs and HOA budget and I was able to confirm that they have ample reserves but I'll need to double check when was the last time the 40 year was performed.

    1Reply
  • Jason Brown
    OP
    Investor · Miami, FL · Member since 2017 · 229 posts · 271 votes
    4y
    Quote from @Elizabeth M.:

    That's great, Jason  - congratulations:) I learn alot from your posts & posted deals. 

    Is this a building/area that allows you to convert to STR, if you chose? (Although it sounds like long term rental is your plan)

    As how some Miami municipalities and/or condo boards are getting hardline on that, curious as to if you have that option in this condo property?  

    Elizabeth 


    HAHAHA I wish. STRs in most Miami condos are universally banned. With it being such a tourist area no homeowners or HOAs are allowing them. Also too STRs generally require a different insurance policy which isn't most master HOA policies don't include.

    No this is just a long term rental but if in the future that were to ever become an option it would most definitely push my COC through the roof!

    0Reply
  • Elizabeth M.
    Canada · Member since 2021 · 5 posts · 1 vote
    4y

    For sure - between Miami-Dade County's ordinance and individual municipalities' regulations on STR and all their regulations entail - including insurance specifications - it's pretty intense.

    0Reply
  • Mark Welch
    Member since 2019 · 19 posts · 9 votes
    4y

    Is this condo community warrantable?

    0Reply
  • Jason Brown
    OP
    Investor · Miami, FL · Member since 2017 · 229 posts · 271 votes
    3y
    Quote from @Mark Welch:

    Is this condo community warrantable?


     Yes it is. I was able to obtain financing on it.

    0Reply
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