Updated almost 3 years ago on . Most recent reply
Miami High-rise Short Term Rental Investment
Investment Info:
Condo other investment in Miami.
Purchase price: $429,000
Cash invested: $100,000
We purchased this condo in Miami (currently under renovation) to be strictly used a short term rental.
What made you interested in investing in this type of deal?
Wanted to expand in the Miami market and chose one of Miami's nicest sections (Brickell) that allowed short-term rentals in the building. We were also interested because the condo has a beautiful water view and views of the city.
How did you find this deal and how did you negotiate it?
We found this condo through one of our friends who's a realtor. She negotiated the purchase price for us and managed to take off $8K from the original listing price.
How did you finance this deal?
We did a conventional loan and put 15% down at settlement
How did you add value to the deal?
We're currently under renovation and are adding value to the home by installing all new stainless steel appliances, new fixtures, complete bathroom gut and remodel, fresh paint, and all brand new modern furniture.
What was the outcome?
Before we even started renovating, 6 months after purchasing the property the value of the condo went up by $80K. Once the bathroom is finished this'll become a short-term rental that will generate $200-$400 per night.
Lessons learned? Challenges?
When working with a HOA there are a lot more rules and regulations you'll need to follow throughout the entire process. Even if we can do the work ourselves this particular building requires us to have a remodel permit and a licensed contractor to complete the renovation. This in turn caused a lot of delays.