My condo investments success in Miami Florida

Real Estate Deal Analysis & Advice

My condo investments success in Miami Florida

Investor · Miami, FL · Member since 2016 · 127 posts · 25 votes

Hello, I'm new to Bigger Pockets and decided the best way to introduce myself is to share my success with condo investing Miami Florida . - Started in 2000 with vacation home rentals in the gulf coast and town home rental in Miami . - Market crashed and lost properties to foreclosure and short sale. - From the market crash through 2010 I saved as much as I could since I knew my credit would be damaged. - In 2011 Realized prices were very low I jumped back into real estate and purchased and repaired a foreclosure as my primary home. - 2013 purchased all cash a condo near my home . It Needed minor repairs and soon rented it out. Property produces around 10% ROI -2014 partnered up with another investor and purchased all cash another condo near my home. This needed minor repairs as well and soon rented out. Property produces around 9% ROI - 2016 again partnered up with same investor and purchased all cash condo near my home. This unit only needed replacement of washer dryer. Kept current tenants in place and raised the rent . Property produces around 9% ROI I'm hoping to continue this pattern every year or every other year. Please let me know your thoughts , advice on what I may improve on , or any questions you may have.

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Investor · Miami Beach, FL · Member since 2016 · 486 posts · 216 votes

nice comeback! Education cost money and you have gotten it in the first round. Set your own rules and never break them again and you will succeed.

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Jose R.
Miami, FL · Member since 2015 · 99 posts · 32 votes
10y
That's great man, keep it up. You are growing your portfolio, slowly but surely.
0 Reply
Alex R.
OP
Investor · Miami, FL · Member since 2016 · 127 posts · 25 votes
10y
Thank you Jose. Appreciate your positive words
0 Reply
Dmitriy Fomichenko
Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
10y
That's an interesting story. From what I can see, most of these are cash purchases, so excellent job on saving for them. Your ROIs look good, and you're definitely growing your portfolio steadily. Just curious, do you intend to keep them all cash purchases in future? Your credit score would have improved by now.
Good luck!
0 Reply
Roman M.
Investor · Miami Beach, FL · Member since 2016 · 486 posts · 216 votes
10y
nice comeback! Education cost money and you have gotten it in the first round. Set your own rules and never break them again and you will succeed.
1 Reply
Alex R.
OP
Investor · Miami, FL · Member since 2016 · 127 posts · 25 votes
10y
Thank you Dmitriy. Yes my credit has improved , but my credit history still has mention of my foreclosure. Last year I applied for a load and the loan officer said my only options are hard money lender with higher rates or wait 2 more years and I may be able to qualify for fha loan on single family homes. Currently SFH are a bit expensive in Miami to hold and rent and not providing a high ROI. My third option is save and buy condos cash. I feel very comfortable with this strategy but maybe if anyone has ideas or options on how to purchase with leverage under my current situation , I would be open for suggestions.
0 Reply
Alex R.
OP
Investor · Miami, FL · Member since 2016 · 127 posts · 25 votes
10y
Thank you Roman For those encouraging words.
0 Reply
Edgar U.
Real Estate Agent · VA · Member since 2008 · 420 posts · 175 votes
10y
@Alex R. for someone whom lives in Miami, FL and currently seeing people constantly steer away from condos. I am glad you are able to use this as an opportunity to buy where others aren't! Keep it up.
I read an article on the Miami Herald that said condo prices in Dade went from 150k average last year to 180-205k this year!
I had a condo on the market for 70kish in Dadeland area (which is great area to rent) if anything pops for condo's will keep you posted. If I were you, I would look into Broward, condo's are a lot cheaper and don't have much association issues/assessment going on.
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Alex R.
OP
Investor · Miami, FL · Member since 2016 · 127 posts · 25 votes
10y
Edgar thank you ! The dadeland condo sounds great . How many bed/baths did it have ,? If you have any more if these deals I would be interested . Broward is a bit far for me. For now I want to in or near my area . SW area, gables , doral , sweetwater, westchester, Kendall
0 Reply
Bhekizwe M.
Bulawayo, Zimbabwe · Member since 2015 · 1k+ posts · 253 votes
10y
great comeback buying a foreclosure in a market with low prices.thanks for sharing
0 Reply
Dennis Cuocci
Hoboken, NJ · Member since 2015 · 15 posts · 4 votes
10y
Hey BP investors. M since You have experience in Miami. What are your thoughts on Delray Beach as yearly or vacation rental properties. I've been visiting family their and thought it is an opportunity to get my feet wet I. Florida as well as NJ where u started. Thanks Dennis
0 Reply
Roman M.
Investor · Miami Beach, FL · Member since 2016 · 486 posts · 216 votes
10y
anywhere north outside of Miami still makes sense if the area is in good rental market
0 Reply
Alex R.
OP
Investor · Miami, FL · Member since 2016 · 127 posts · 25 votes
10y
Vacation rental for me did not work out too well. I owned a couple of SFH vacation rentals in Marco island and the rental income did not leave cash flow since expenses were so high on that island. Not sure about delray beach but If the numbers make sense , then why not . Numbers don't lie.
0 Reply
Soumya Brijesh
Investor · South Padre Island · Member since 2016 · 83 posts · 17 votes
10y
Hi Alex R. Good job with the come back. How are you acquiring these properties ? Thru MLS Or off market. How are you factoring the ROI ? Is it after all expenses ? If yes what is the percentage are you factoring for repairs/capex/ property mgmt ? Lastly what areas are your current investments ? I was looking last year and the realtor kept showing me properties in homestead area. Brijesh
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Alex R.
OP
Investor · Miami, FL · Member since 2016 · 127 posts · 25 votes
10y
Soumya thank you. These properties are from MLS and I like to consider myself a pretty good negotiator. There is a lot of competition but I find if you treat everyone you interact with in each transaction as a human and you are friendly/polite with them , and not treat them as $$$ , it helps. The ROI is after expenses . I am very conservative with my numbers. For 1/1 or a 2/1 I calculate $100 - $200 a month on repairs . I like to over calculate as a worse case scenario. Vacancy is not an issue in the areas (read above in previous post to see what areas) I invest in. The demand is extremely strong.
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Account Closed
Commercial Real Estate Agent · Delray Beach, FL · Member since 2014 · 4 posts · 6 votes
10y
Originally posted by @Dennis Cuocci:

Hey BP investors.
M since You have experience in Miami. What are your thoughts on Delray Beach as yearly or vacation rental properties.
I've been visiting family their and thought it is an opportunity to get my feet wet I. Florida as well as NJ where u started.
Thanks
Dennis
Dennis, I'm an agent in Delray Beach and the vacation rental market here is very strong. Let me know if you have any other questions.
Valerie
0 Reply
Jared B.
Delray Beach, FL · Member since 2015 · 14 posts · 6 votes
10y
Hi Dennis Cuocci , I am also an agent in Delray Beach and know the area very well. Fee free to reach out.
0 Reply
Jon HuberPro Member
Rental Property Investor · Boca Raton, FL · Member since 2014 · 1k+ posts · 713 votes
10y
@Alex R., @Dennis Cuocci, @Account Closed, @Jared B....
Just a heads up, there is a meetup in Delray Beach that discusses things exactly like this. Send me a PM if you'd like more information. We meet every month...
0 Reply
Bryan Weschler
Real Estate Professional · Miami, FL · Member since 2016 · 38 posts · 5 votes
9y
Hey Alex R. - nicely done! I'm very interested in the condo market in the Miami area. What area are you buying in? Closer to beach? What are your must haves for a good condo deal? Any input is greatly appreciated.
0 Reply
Alex R.
OP
Investor · Miami, FL · Member since 2016 · 127 posts · 25 votes
9y
Hello Bryan, thank you!
Miami has become very expensive. I try to Stick to the 1% rule or better. Try a ROI of at least 10% or better. I stay away from luxury market like the beach and Brickell . Find decent blue collar working areas B and C areas.
0 Reply
Bryan Weschler
Real Estate Professional · Miami, FL · Member since 2016 · 38 posts · 5 votes
9y
Hey Alex R. - would you be open to a call over phone? Just want to pick your brain some more on the condo market. Thanks, sir.
0 Reply
Alex R.
OP
Investor · Miami, FL · Member since 2016 · 127 posts · 25 votes
9y
Hello Bryan,
No offense but I would be more comfortable via message here (forum). It will also help others get informed as well if we share the info.
What would you like to know ?
0 Reply
Bryan Weschler
Real Estate Professional · Miami, FL · Member since 2016 · 38 posts · 5 votes
9y
Alex R. No offense taken. :) What are your thoughts about the homestead market? The condos you bough cash REO's? If yes, how was that experience? Sweetwater and Westchester are you mainly looking at condos or SFR as well? You rent them out yourself or hiring someone to do it? Thanks!
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