Miami Beach Units?

General Real Estate Investing
1

Hi all :),

I have been looking at some units in the Miami South beach area. I have noticed that you can get some in existing hotels for around 150 - 200K. I had some questions about them.

  1. I would be looking to rent to vacationers. Can these deals come with property managment that handles this? If so what is the average fee?

  2. Does the property managment also handle the day to day cleaning of the unit or do you have to hire someone else?

  3. Is there a way to find out the average vacancy rate of the unit from the management company? I don’t want to buy something that can not be filled on a regilar basis.

  4. I have also seen some condos for sale about twice the price, are these a better investment for this idea or is it better to stay with the hotel units?

I have never done this before so any help would be great!

Thanks,

Jutah

2

I looked into that too and yes the hotel /condo ass. will rent it clean it take care of it for 40% It is almost impossible to get funding for these. If you do get funding the #'s are so ugly you dont want it anyhow.Hotel vacancy rate is around 30%

3

Hi Campbellgroup,

I would be proboably putting a big chunk down ~75K. Would this still sound ok? Also what do you think about intrest only on this?

Thanks,

Jutah

4

I wouldnt put 75k in a deal like that I think it could make me more money elsewhere.I dont and wont do interest only loans.Now I did hard money when I started to get great discounts by paying cash so it kinda paid for itsself .But for mortgages no way.

5

What about 3 or 5 year arms if I was planning on reselling after the arm?

Thanks again,

Jutah

6

Each of us is different .I personally have talked to others and have found those things to be bad investments. I wouldnt do them.Like I said even with 75k down you probably wont get funding foor the rest and if you do the terms would be so ugly it wouldnt be worth it.

7

Thanks for your input Campbelll :slight_smile:

So why don’t mortage companies like these types of investments?

Thanks,

Jutah

8

too risky.They are only like 300 sq feet for $150k in a building that is owned by someone else and the unit probably will probably only be deeded with a zillion unreasonable restrictions.Like we can tear the building down whenever we want .