All Forum Posts by: Account Closed

Quote from @Doug Smith:

I think more than area is the math. You've got a big budget, but I find in this day and age, with super-high insurance, tax rates, and interest rates, it's much, much harder to get a property to cash flow. That's even more true with higher-priced properties. I've found that the rents vs property cost are usually not as favorable at the higher-end of the spectrum. You can find good and bad deals in any area. Finding a good broker that understands real estate investing...and I mean really understands it...not just people that say they do. Spend time chatting with brokers to get a feel for them prior to looking for property. That relationship will pay dividends if you do...not for finding property...but for talking you out of deals that you probably shouldn't do. That's really where their value comes in, but back to your question. Any of those areas can be good areas. It's the math on the property that matters. 

 Yes, from both my experience the higher end do have high appreciation, but do not give as a high rental yield. I would love to find the middle grounds. Not looking for 10% return on rent, and also not looking to go for the lower end that has no big appreciation over time.

Hey!

Looking for an opinion from non-bias people (such as brokers who are pushing a specific product) about new construction projects in Miami. 

Which are the best ones that are still early adopters pricing, have a good potential for upside, and can generate 5-6% rent income.

Tell me why each of the areas are better than the other, and how do I choose?

1.5M Budget

Thanks :)

Hey guys,

I have been looking into wholesale building of new SFH in Lake Placid.

I wanted to know if anyone here has experience in this area and can shed some light on it.

Thanks

Quote from @Lindsey Clark:

Hi Daniel,

I am a realtor/investor in the Miami area. I specialize in new development, short term rentals and foreign investors. I also own a short term rental. I am familiar with the 72 Park development. Did you get those numbers from the developer or your agent? 

If the developer gave you these numbers they are basically getting them from similar units in the area. I like to use the enemy method. Basically looking up other units near by on airbnb to see if it matches up. I do think the nightly rate is realistic. When there are big events prices can go as high as $1,000/night. Like any market there is a high season and low season. Data rabbu is a free website to look up seasonality. Airdna charges but has very accurate information. It is good to make that part of your due diligence. I recommend reaching out to your developer or agent, if you have one, with all of these question. If you need an agent with experience in this field I would be happy to speak with you.

 Honestly, from the bit of due diligence I did do, I don't see how thats realistic for that part of Miami Beach. I couldn't find a single condo in the entire Miami Beach that averages these kind of numbers. Do you have some data to show me how you conclude that it's realistic?

Thank you

Quote from @Ray Hage:

It sounds good on paper.  However, the issue is they area really overbuilding condos all over Miami. Personally, I wouldn't want to take this kind of risk and feel like there is a potential condo crash coming. Over time, you would have to worry about things like assessments as well. You also have to trust management will do a good job. 

To me, 530/night sounds very steep and you can be sure it won't be anywhere near that high in the off season....it is quite a lot of variables. Do an airbnb search in that area for Jan/Feb/Mar timeframe and see what's out there as a double check

It's to my understanding that there isn't a lot of where to build new condos when it comes to Miami Beach, especially North Miami Beach, and especially STR allowing buildings. 

I also didn't see these sort of numbers on AirBNB, but the broker claims that there isn't anything like it in Miami Beach and it's like an alternative to a Hotel rather than an apartment due to all the amenities etc.

Condo price crash in Miami Beach, is that really something that is being talked about?

Hey guys,

I am trying to asses the deal of a condo in 72 Park Miami Beach

https://72parkmiamibeachcondo.com/

The apartment is 1 Bedroom + 1 Den + 1 Bathroom

755 Sq/f + 195 sq/f Balcony

14th Floor North facing

Price $1,150,000

The building is STR approved and these are the estimated income they sent me:

Daily Rate $530

80% Occupancy

$154,760 Yearly Rent

Management 20% - $30,952

HOA - $12,231

Property Tax - $20,826

Insurance - $1,087

Net Expenses: $34,144

Net profit $89,662 - %7.75

There isn't any other buildings like this in North Miami Beach that can really be compared to, I haven't found any data on AirDNA that can support such an income, and it seems like most new condos in the area are selling for $850 sq/f.

I am trying to understand if this is a good deal, if anyone can give me "insider" insight into the likelihood of achieving such a return and in general what you guys think of this deal

Thanks

Hey guys,

I am trying to asses the deal of a condo in 72 Park Miami Beach

https://72parkmiamibeachcondo.com/

The apartment is 1 Bedroom + 1 Den + 1 Bathroom 

755 Sq/f + 195 sq/f Balcony

14th Floor North facing

Price $1,150,000

The building is STR approved and these are the estimated income they sent me:

Daily Rate $530

80% Occupancy

$154,760 Yearly Rent

Management 20% - $30,952

HOA - $12,231

Property Tax - $20,826

Insurance - $1,087

Net Expenses: $34,144

Net profit $89,662 - %7.75

There isn't any other buildings like this in North Miami Beach that can really be compared to, I haven't found any data on AirDNA that can support such an income, and it seems like most new condos in the area are selling for $850 sq/f. 

I am trying to understand if this is a good deal, if anyone can give me "insider" insight into the likelihood of achieving such a return and in general what you guys think of this deal 

Thanks

Quote from @Alex Giassa:

Quote from @Account Closed:

Quote from @Joe Biscaha:

@Account Closed I like 72 Park in North Beach. It just topped off and will be ready next year 2024. 

 How are the prices compared to presale prices?

I feel like I'm too late to the party on this one.

 72 Park is in pre-construction phase.  Studios are in the $700s.  

I know its pre-construction, but my broker told me it's a bit too late as the early birds got the good deals and the good condos for a better price its listed today. 

Quote from @Joe Biscaha:

@Account Closed I like 72 Park in North Beach. It just topped off and will be ready next year 2024. 

 How are the prices compared to presale prices?

I feel like I'm too late to the party on this one.

Some follow up questions for everyone:

1. Of all the areas, you suggested to me that there are areas that are more saturated in the construction of STR buildings that will be ready in the coming years when there will be much more competition in a few years on the market - for example Downtown - what do you think is the most strategic area for this issue? Is Miami Beach/Brickell better?
2. What are the advantages/disadvantages of a condo in Miami Beach/Brickell/Downtown?
3. Which area do you think has the most room for future appreciation as large companies and private people continue to enter South Florida?
4. In consideration of risk management, in case of - litigation against STR or saturation of STR apartments in the area, which area has the most value for long-term rent, that is, if I decide to move to long-term rent? And how realistic is it to move into such a building for long-term rent? (STR targeted new construction)
5. In terms of condo features: which features are the most important for an apartment and a building for STR? (For example - a view of the sea, the balcony, high ceilings, and what features of the building amenities

Thank you :)