Rental Property Investor · FL · Member since 2015 · 16 posts · 10 votes
Good Afternoon,
I am looking for any guidance on possible cash flow locations close to my area.
I live in Miami and I am looking to invest in the next couple of years on passive income properties here in Miami. I wondered if it is possible to cash flow here since Insurance and Taxes are so high, makes it really hard to get cash flow.
I am looking to put-20% Down 80% Financing.
Any other locations close to Miami with good Cash flow potential? I read that Fort Myers is a good area for cash flow deals but it is a bit far from Miami.
Real Estate Agent · Miami, FL · Member since 2015 · 19 posts · 3 votes
10y
@Basilio Alcantara I second what @Lucas Machado said. Insurance just depends on what company you are working with and what exactly you are wanting to get out of your coverage. Taxes aren't that's high in areas like coral gables then I won't disagree with you. You have to think a little differently to find those deals. Some areas that will fit the profile of what you are looking to do are homestead, Florida city, south Miami, cutler bay and university park. The ability to rent a property now a days in South Florida is just like taking a sip of water. It's REAL EASY. Obviously ones do diligence is always necessary but with the market being inflated you should be able to take advantage of its situation atleast for now.
Real Estate Investor · Sunny Isles Beach, FL · Member since 2013 · 788 posts · 333 votes
10y
@Basilio Alcantara welcome to BP. Cash flow should not be a problem in the Miami area...The taxes really aren't that high compared to some other states - Google "average property tax by state". And the average rental rate is strong as well - Google "average rental rate by state".
The difficult part in Miami is getting a good cap rate. People are out there paying absurd amounts for properties, so it's tough to find a good deal at a solid cap rate. In all the deals I've analyzed, cash flow has never really been an issue, even when factoring in a conventional mortgage...The primary issue has been insufficient cap rate.
Real Estate Agent · Miami, FL · Member since 2015 · 19 posts · 3 votes
10y
@Basilio Alcantara I second what @Lucas Machado said. Insurance just depends on what company you are working with and what exactly you are wanting to get out of your coverage. Taxes aren't that's high in areas like coral gables then I won't disagree with you. You have to think a little differently to find those deals. Some areas that will fit the profile of what you are looking to do are homestead, Florida city, south Miami, cutler bay and university park. The ability to rent a property now a days in South Florida is just like taking a sip of water. It's REAL EASY. Obviously ones do diligence is always necessary but with the market being inflated you should be able to take advantage of its situation atleast for now.
Hollywood, FL · Member since 2015 · 42 posts · 13 votes
10y
What type of cash flow are you seeking? With a mortgage on the property, the cash flow will be be even more limited in addition to maintenance, insurance and taxes. Miami is especially hot right now. Have you considered Broward at all? Fort Lauderdale is a particularly good area, but at the end of the day, it's simply finding the "deal" that works for you.
Rental Property Investor · FL · Member since 2015 · 16 posts · 10 votes
10y
Thank you for your comments, I will be targeting a minimum cash flow of 200 per month on possible deals, I don't mind looking at other areas near Miami, what is key for me is to see the positive cash flow after doing the math.
Real Estate Investor · Sunny Isles Beach, FL · Member since 2013 · 788 posts · 333 votes
10y
Like @Iden Nazario said, renting out a property in South Florida is very easy...There are tons of underwater mortgages here, so there is an abundance of short sales. Also, lots of people have been foreclosed on, and there are a TON of foreclosures still on the way...What this means is: 1) the people displaced will be looking to rent, and 2) those foreclosures/short sales are going to hit the market at distressed prices. That's a good combination for landlords.