South Beach Condo- Market Glut?

[Timothy Ryan]

Hello Everyone:

I have an opportunity to purchase a bank owned condo in South Beach, Miami, Florida. It is 1b/1b and 605 square feet. The purchase price would be $132,000. It is located on 12th street, between Drexel and Pennsylvania Avenues. My understanding is that short term rentals are not permitted on this block because of zoning code. 

I see similar properties selling for $180,000-$200,000. I am looking for feedback in the following areas:

1. There is a well documented glut of condo inventory in South Beach. However, it seems most of this glut is in the luxury market. Is there still a heathy market for condos priced under $200,000, or has the glut above seeped into all condo assets?

2. How much will the inability to short term lease the property affect its marketability for resale? I could see the benefit to not having short term leasing surrounding your home, but I would obviously be losing a huge portion of the investor market.

3. A local agent who knows the market well, could assist with getting the property ready to relist and list the property. I am an out of state investor. 

Thanks for all your feedback!