All Forum Posts by: Timothy Lewis

Miami is just one of those markets that is hard to cash flow due to the price point of the inventory. Not only just cost is high, but property taxes, insurance, and HOA's will all bring down your COC significantly. What type of properties are you look at specifically and in what areas?

Hey @Charles Mitchell,

I'm an out of state investor as well. I own a couple properties in Memphis. I created this list about a year ago so the quality of these areas have probably changed as Memphis is rapidly growing. Needless to say, it still will provide you a general idea of what areas to look at:

Good areas:

• Raleigh 38128 (try to push as far east as you can)
• Bartlett- expensive, but solid
• Cordova - expensive, but strong. Still some unincorporated areas so those would be county only tax, very rare to find one
• East Memphis 38117, generally solid, drops off a bit south of Quince. E.
• East Memphis - 38111 -generally great, can get spotty when you go too west on the southern part of the zip code near the Orange Mound area. North of Southern Ave is $$ and University of Memphis. This is very street to street from 250k+ homes to shacks.
• Midtown/ Cooper young -38014, similar to 38111. Very complex area. Huge developments and improvements in this area. Really need to know your stuff if you're going to buy here.
• Whitehaven 38116, has its bad areas, but good investment areas. You'll find some rtv opportunities 1-1.5% here with less risk than Frayser. Working class neighborhoods
• Parkway Village and Hickory Hill -38118, 38115 similar to Whitehaven
• Westwood/west Whitehaven - 38109 - some good finds.
• Germantown - $$$, very few deals in general as it is similar to Collierville, maybe some on western edges, but those are very hard to find.

Areas to avoid:

• Frayser 38127
• Orange Mound 38114
• North Memphis - 38107
  South Memphis - 38126, 38106

I hope this helps.

@Julene Webb

I second Memphis

@Jake Silverman

It would all depend on your budget but their are pockets of Broward county that house hacking would be ideal. As @Duriel Taylor mentioned, Dade County can get pretty pricey. However, you can still make it work depending on your budget.

Congrats!

Originally posted by @Jason Brown:

@Jean-pierre Martinez

Sure. Picked up a condo in Miami beach 2 weeks ago. Plan is to BRRRR this one. Owner had passed away and kids were selling off his portfolio and didn't want to deal with it. Last tenant had been there almost 20 years and it needed a complete rehab.

Its a small 400 sqft studio but it’s south of 5th street on the beach so the location is pretty great. 

Purchase price and closing costs: 62K

Rehab currently in progress: 28K

All in for 90K

ARV: 130K so I plan to pull out the full 90K on my refinance based on 75% LTV.

Rents are comping around 1300 which has me cash flowing about 150 a month including reserves, property management and a monthly 200 HOA. Association has no rental restrictions so I plan to keep as a traditional rental until I see how the city of Miami Beach regulates STRs.

It’s definitely the kind of deal I look for especially if I can get all my dollars out of it from day one.

Sorry I wrote this on my cell so hopefully it’s coherent. 

South of 5th?? Nice! Congrats. It sounds like a very solid deal

Hey Heather,

I think the best way to find a PML is to network. Talk to people, let them know what you're doing and what you are trying to do. I would consider getting some skin in the game first, maybe consider doing a deal with a hard money lender or conventional loan first. Investor's want to see that you have experience and know what you're doing before they give you their money. 

 I second this

Congrats and Good Luck!

Surprisingly enough the risk of flooding is not as high as you think. The chance of flood in most areas of South Florida is between 0.2%-1% with a flood depth of 1-3 feet (on average and depending on the area). I'll attach flood map analysis below on both Palm Beach and Broward County to aid you during your property search.

https://www.broward.org/Enviro...

http://maps.co.palm-beach.fl.u...