Pros and Cons of Investing in a North Miami Beach 1950's Condo's

[Soumya Brijesh]

Hello All,

I recently moved to the Miami Area and looking for investment deals in the miami area. 

I have my landlord who seems to fed up managing his condo and looking to forgo his place. i haven't started any negotiations yet but he is looking to sell his 1950's condo 1 bedroom 500 Plus sqft at around 100k which is negotiable. The condition is ok and livable but in my opinion requires about 10k -15k of work as everything is dated. Plus the building itself doesn't look appealing from outside. The location is around 77th and abbot ave on north miami beach.

 I wanted your take on what are the pro's and cons for this area as well as this type of property

My primary goal of getting it would be to hold it as buy and hold, where I was thinking of a couple of options 

1) invest in re-modeling and put it up on AirBnb

2) Get a Long term tenant, the rents for this area what i saw was around $1100-$1300.

Also, in terms of acquiring the property I was thinking of following. 

1) Have the seller finance it for around $75000 

2) Lease option for 5 years at a fixed monthly payment of $750

3) Pay cash $60,000

[Malgorzata Sadowska]

Dear Soumya:  couple things I would ask about:  (1)  Does the building allow airB&B rentals?  for the buildings that do not (usually, only the condo hotels do), I'd suggest being cautious about the airB&B strategy.  Have you seen recent conversations in Miami Beach about short term rentals?  

(2)  Before agreeing on any offers with the owner, I'd scrutinize building's finances.  

(3)  What is attracting you to this particular investment (versus other opportunities)?

Warmest regards,
Malgorzata Maggie Sadowska