Art deco condo in South Beach, or a house in Tampa or Pensacola. Which is smarter?

Question

I'm in the process of making my first purchase. In the last several months I've tried to buy a property within the city of Miami. However, do to the current issues with insurers leaving the state and requiring buildings to have more coverage under their master insurance policies, I couldn't go through with the purchase. You see, the condo association already doubled its HOA from somewhere in the $300s to it's current price of $666. However, two different homeowner's insurance agencies still would need them to up their coverage on their master policy. But that would mean another HOA increase for a small condo development of 16 units. Of which 1 man owned 9 units, and was basically the entire board. Needless to say, financing that unit would not be an option with any lender. So now I've been advised to consider Miami Beach as a better option for my price point of under $400k. But, with HOA costs, utilities, taxes, homeowners insurance, and floor insurance, I' wondering if the cost is worth it for the Miami Beach area? All of these expenses equate to Manhattan prices, just in a subtropical setting. And while I could see myself living there more than in any other city in Florida, I'm wondering if there is any longevity in an Art Deco condo building in Miami Beach(and I'm aware the Art Deco/historic buildings in Miami Beach can not be torn down due to new laws, fought for by the locals)?

I've been considering a home, but I'm conflicted on which market is right for me. I feel Tampa's current success is hyper-inflated. I've lived in the Central Florida area from 2003 - 2008. I have family members in the Saint Pete area, so I have some familiarity with Tampa. What I mostly remember is the horrible traffic. My other concern though is the current outlook on the housing market in Tampa, and the many expressed calculations on Tampa's housing market being over priced. So I'm also concerned with Tampa's longevity, when compared to somewhere like Pensacola(a place I know nothing about having lived in Marion county) which has also been in many recent lists by US News and Forbes, as one of the best cities in Florida. But not knowing much about the panhandle, I'm wondering if investing in a property over there is worth it at all from a financial standpoint, as if I were to buy in Pensacola, I think it would be solely for investment purposes than personal. Unlike Tampa and especially Miami.

So here is my question. Should I put aside a condo in South Florida, which as my first property would have more potential for my to live in( with the added opportunity to rent, because I would still split my time between New York and Florida)? Or should I consider a house in Tampa for the same practical use as the Miami condo, or does the costs make it more practical to operate a strict investment property in Pensacola?

an example would be these two properties to get some perspective on Pensacola v. Tampa.......

Pensacola: https://www.zillow.com/homedetails/1005-E-Strong-St-Pensacola-FL-32501/80758830_zpid/?

Tampa: https://www.zillow.com/homedetails/412-W-Hanna-Ave-Tampa-FL-...

Michael Haynes · Answer

Hello Etienne Santos in NY. Do you know the IRS rule for First Time Home Buyers? You can Homestead your First Home in Florida for 2 out of 5 years and Sell it for $250,000 Tax-free. In the meantime you find another to Rent until you Sell your Home and just move into your Rental and do it again. BP encourages Newbie's to "Invest" in Rentals etc. when you don't own your First Home and you are just renting. That's misleading. Do you know Miami Beach? What a mess. I gave up on going to South Beach 20 years ago when they started charging for parking. Same problem with St. Petersburg etc. Traffic you don't want to get stuck in and no easy parking. Did you see the Champlain Condo Tower collapse in Surfside? That was because Architect had illegal plans, the Builder built columns not sufficient to support the underground parking area and the Inspectors were all corrupt. Maintenance was deferred criminally to the max. The result for all the other Towers will be huge, Special Assessments for tens of thousands of dollars for each Owner to fix the roofs as a minimum. Go to one of the RE sites like Realtor.com with your choice for a property and check the amounts and types of crimes in that area. Miami to Ft. Lauderdale are full of crime and traffic. You mentioned the new costs for Condo and HOA fees and the Home Owner's Insurance and now it is required to have Flood Insurance etc. When I started with Rentals 30 years ago, the rule was if it is cheaper to Rent rather than Own. I figure it is much cheaper to Rent an apartment in the Towers anywhere in Florida than it is to Own at this time. If you have Insurance for your belongings and don't park your car in the underground parking during a Hurricane, then, live on the beach. You are talking about South Beach living and STR the time when you are in NY, but, do you know the Rules? Tampa is the Party Town for Tampa Bay. St. Petersburg to Clearwater are the Beach communities. Pensacola is like South Tampa where all the Storm Drains and Water Pipes are 100 years old and all the streets have to be torn up to replace everything as a 20 year project where they raise Taxes and Fees and create endless barricades on the streets with no one working. I moved to Valrico, outside of Tampa to get away from the mess and my Tenants in an area that is like all new homes in rolling, green hills. The biggest crimes here are Shop Lifting. You Home is not an Investment, unless you know the Business and Real Estate Cycle you are in. Go watch Grant Cardone's youtube video, "The Worst Investiment You'll Ever Make."