Miami airbnb investing

[Amit Shah]

Looking to buy a condo in Miami for short term rentals. The condo market seems to be on a downturn and prices seem to be at a point where a decent profit can be made on Airbnb even after the high condo fees (atleast on paper). Currently looking at Opera towers, Grand, 1200 Brickell which are few buildings that allow daily rentals. 

Would like to hear thoughts and experiences of fellow investors in the area. Is this a right time to buy or should i wait ? Does Airbnb makes sense ? Is anyone else thinking or currently doing the same ?Any other buildings apart from the above that are good candidates ?

[Anand S.]

Check the pricing and occupancy on ABB of the condo you want to purchase to see what you can expect. MIA has very tight STR rules, practically outlawing them. Make sure to double check the zoning and licensing.

I would be leery as crap of the condo market in MIA.I think it's just starting to take a crap. It will take at least a couple years to see it bottom (in my view). 

[Josh Norell]

Care to share your estimated numbers?

[Amit Shah]

Hi Josh. I looked at Opera towers in Edgewater. I am no expert but have made below basic analysis 

1 bed costs about 275k and rents for 150 a night on average. Assuming 50% occupancy u can make $2250 a month. Expenses including mortgage, hoa etc assuming 30% dp are $1700. So annual profit is $6600 on an investment of 80k. 

Now the prices are expected to drop further so not sure what to do atm. 

[Wesley Whitehead]

@Amit Shah that's 2250 a month but then you still have debt coverage (mortgage/property tax). From what I've seen of that area, you're HOA is going to be $800/month. That's not even getting in local governances on STR. Not trying to discourage you but why not look at the design district on Buena Vista, less HOAs. Send me a PM if you would like to discuss further

[Luke Carl]

From what I understand Miami is one of the top 6 "red zones" as in do not do it. Brian Page was on Grant Cardone's podcast recently and this was talked about. Obviously Brian Page is doing what he does and that's a whole different thing. 

[John G.]

I'm planning to do the the same, and have seen some pretty good options in the buildings you mentioned. The other alternative I'm considering is South Beach, where the HOA is much less due to fewer (if any) building amenities. So it kinda depends on your target tenants versus other areas like Brickell or Downtown. I see it as two different people: beach vacationers vs the everybody else (business, festivals).

Zoning is super tricky. You can get fined up to $20k if you're caught by the city. Make sure the building is in the right place, and the HOA allows for STR.

[Mon Agg]

Found this on mashvisor when researching Miami airbnb.

https://www.mashvisor.com/blog...

[Mora Clark]

Thinking of looking at Miami for vacation home and Airbnb as well but sounds like not a good start here based on everyone’s comment. Any other nearby areas that we should consider? 

[Anand S.]

Fort Lauderdale

[Od Ntuk]

Did anyone take the plunge and invest in Miami for an Airbnb? If so, how are things going for you? I am a super host based out of Brooklyn. Since things have basically been shut down in Brooklyn I invested in Philadelphia and now I'm looking for another place to invest. Thanks!

[Branden Rivero]

I am closing on an duplex I am going to airbnb in January

[Od Ntuk]

@Branden Rivero How are the airbnb laws where you invested? 

[Conner Olsen]

@Od Ntuk My city, Austin, has strict STR laws as well. I switched my strategy to be 30 day minimums. I don't get the same rents but I'm making double LTR rates.

[Branden Rivero]

https://www.airbnb.com/help/ar...

[Joe Biscaha]

I'm a Miami Realtor and have helped dozen of investors buy condos and houses for short term rental in Miami. Here's my advice:

1- Be prepared to buy in cash or start thinking like an underwriter. Lenders will want to see at least 20% down payment. Single family homes are a little more flexible. Most lenders do not like condo-hotels since they are "risky" and have a higher default rate than owner-occupied mortgages. 

2- Miami is not the market to "get a fire deal". Everyone wants to be here. People are realizing they can work and live here. Miami is no longer just for vacation. Companies are moving their headquarters here.  The "deal" is the property you buy today and HOLD for the next 5-10 years. Read on about new construction. 

3- Have a team. You need a great team that can work together to make the deal happen. At a bare minimum you need a real estate agent that knows the market for STR, local mortgage broker, attorney, property manager, contractor and a designer.

4- Consider new construction. Right now there are less than 5 STR condo buildings in Downtown Miami. There is a wave of new construction condos that have a in-house operator and allow daily rentals. The best hedge against inflation is pre-construction projects. Buying at a fixed price today for something you will receive in 2 years.