Investing in South Florida

[David Mejia]

Hello guys. My name is David and very excited to be part of bigger pockets. I am looking for my first rental property but with high prices down here ( Broward ) properties don't seem to cash flow ( at least the ones I have chedcked so far).  Any suggestions on what part of Broward or even palm beach or Miami date will be a good location for rental property.  thank you for your response and for helping a new real estate investor.

[Gabriel Amedee]

Jose Rueda

I'm so confused..

Why did you include an ARV on your calculations for a buy & hold? If you're buying for cash flow I'm not sure what value ARV has in such formula.

My math with your numbers would be more like this:

Acquisition:
Asking: 290k
Repairs: 15k
Total Acquisition: 305k

Revenue: 28,800

Taxes: 4583 
Insurance: 1800
Cap ex: 2400
PM @ 10%: 2880
Total: 11,663

NOI: 17,137
Cap Rate: 5.6%
Cap Rate w/o PM: 6.56%

Not a crazy return but pretty normal to see in Miami if you're purchasing in middle to upper class neighborhoods.
Most of my clients seem to be really content 7-9% down here.