I used to post alot on here but i think my account got deleted. Anyway, im inching closer and closer to putting together the funds for my first deal. Im trying to stay in good neighborhoods and deal with better tennants but geez its hard to do with prices and taxes the way they are in Miami. Should i keep with this plan or go with a cheap property in a bad neighborhood? I would like to deal with 4 units and up only.
Miami has a good neighborhood?? where??
what kind of funds are you playing with? what type of financing?
what type of tenant do you want?
I would like to stay in north miami beach, miami beach and south beach but would also buy in coral gables and the grove. Funds would be 50-100k. Not sure on financing and i would like good tenants like anyone else lol.
Are you buying to hold, flip, …
Oh excuse me. Im buying to hold, i want to make my money in rental income and would prefer to have a management company manage my properties but thats down the line. For now i just want to get my feet wet and learn the ropes but i would like to buy the right property.
your not looking in the greatest areas of miami. You will need steep discounts.
SoutH Beach…forget it for cashflow unless your putting down 25% min and buying at 50cent on dollar…
Miami Bch. again more condos and over priced, rents have dropped alot. NMB is still very similar. Even with a good deal, the condo association fees will kill your cashflow chances.
If you go into NMB just east of I95 where homes are, well your in a war zone really. Cheap homes, cheap condos, but make sure your friend Smith and Weston come along when collecting rent.
Gables and grove again more high end prices. Look more into Homestead for cheap prices, working spanish renters or Doral. You want cheap I see. Miami in essence is a 3rd world city in a 1st world state.
FWIW- One difference between a 4 unit and 5 or more units is that a 4 unit is a residential property and the 5 unit is a commercial property. The 4 can be financed with a 203K or conventional 30 year mortgage. The 5 unit is a commercial building and financing would most often be for 20 years or less. Also, Be aware of the building / fire code differences as well.
JP
Do you believe Miami will ever come back to reality in terms of prices meeting true value?
South Florida is a long time before it recovers I feel. We are one of he leading counties in the country for foreclosures. The market is saturated. Idiot builders are still developing condo’s and townhomes which make no sense. Right now most cities want to try and redevelope and build mini downtowns. They want to restore the old charm not redesign it to make it condo and townhomes.
INsurance is a killer in So Fl. My insurance policy because I live east of i95 cost $8500 a year. My house is now worth maybe $325K. During the boom it was worth over $750K. Yet ins has gone up not down, since the value of the home is still the same, its the lot that has decreased really.
Put it this way, I own my home free and clear and still taxes and ins cost over $1000 a month, add in utilities and it cost close o $1500 a month w/o a mortgage. Now how many people can afford that plus another $1500 on the mortgage. Our job market sucks right now, unemployment ovetr 12% down here that is on the books collecting but it is higher.
I am not a fan of Miami at all. Like to go dinning in SoBeach sometimes but that it is. Look for rentals in Broward and Palm Bch. More stable nieghborhoods.
Thank you sir.