Miami Beach Condo's- Good or Bad Investment?

Question

I am looking into purchasing my first investment property. I would like to land something in the Miami Beach area and rent it as a vacation home. Is anyone in this market? Can you share your experience? Tips?

David O. · Answer

Miami Beach condos don’t necessarily cash flow really well as real estate investments given the high costs of the units, but they will still cash flow positive and add to the overall return. However, the right unit as an asset acquisition for the right price is excellent for capital appreciation and profit upon disposition because. People come from all over the world and ready to spend. You just have to find the right deal, which is getting harder and harder to find. Miami Beach is extremely competitive. I have been lucky and found great deals, however, by working with a great local broker who specialized in investment properties.

Bogdan Cirlig · Answer

Umm.. those condos can run upwards of $1MM, not sure how you can make that deal cashflow and as Wayne pointed out, no AirBNB thingie.

Wayne Brooks · Answer

Most will prohibit the daily/weekly rental model.  Prices are back on the high side of the curve now, as all the foreign money was looking simply for a safe place to park money.  Lots of cranes in the sky line again too.  New ones on the water, $1200/sf and up.