I've been looking in Poinestta heights and victoria park in Ft lauderdale for a Duplex or Fourplex to air bnb or regular apartment rental.
Does anyone know that area below Poinesetta ieghts called "Lakeridge" is that a good area? I'm looking at a Duplex there it's not quite at the 1% rule more like .7% monthly gross rent/purchase price ratio. I think it would be a decent investment.
Does anyone know that area? Any suggestions on up and coming places in Ft Lauderdale too? or along Sunrise Blvd?
I am not familiar with those particular neighborhoods, but, as a local, I would be worried about hurricanes and flooding. If a hurricane hits with any amount of storm surge you may be in trouble. I've been able to find better flood zone maps for Miami Dade but this is the best one I could find for Broward.
http://bcgis.maps.arcgis.com/apps/OnePane/basicviewer/index.html?appid=0b1b5ffc6f8440f9ab23d688bb79f063
I am not familiar with those particular neighborhoods, but, as a local, I would be worried about hurricanes and flooding. If a hurricane hits with any amount of storm surge you may be in trouble. I've been able to find better flood zone maps for Miami Dade but this is the best one I could find for Broward.
http://bcgis.maps.arcgis.com/apps/OnePane/basicviewer/index.html?appid=0b1b5ffc6f8440f9ab23d688bb79f063
I am not familiar with those particular neighborhoods, but, as a local, I would be worried about hurricanes and flooding. If a hurricane hits with any amount of storm surge you may be in trouble. I've been able to find better flood zone maps for Miami Dade but this is the best one I could find for Broward.
So true. I'm from Arizona originally so I don't think of these things. I'm looking at 2, 4 an even a 6 unit within 1-3 miles from the beach in Ft Lauderdale. Locations seem great, but if there was a huge hurricane and half the tenants left I would be in deep trouble.
What are insurance rates per unit for hurricane? In California where I do most investing it's about 300-400/ unit per year for some liability, fire and basic rental property insurance.
I am new to investing, but I asked a local homeowner. There is no hurricane insurance, it is part of the property insurance. There is a separate deductible for hurricane damage though. I can tell you that after hurricane Andrew in 1992 the building codes in Broward and Miami got A LOT better. This is affected stuff like roofs, which direction front doors open, bracing garage doors, etc.
I recently moved to Miami Beach and made sure I didn't move into a first-floor apartment because of this. Hurricane wind usually only affects a small area, but it can push water into a large area. The most recent hurricane, Michael, hit Panama Beach but storm surge affected the coast as far as Tampa.
@Susan O. You are likely looking between $6k - $10k (annually) for insurance, depending on purchase price. Rates are going up.
Lakeridge is kind of ghetto now, but it's being developed on 13th. It's right between Wilton Manors, which is really nice and Victoria Park, which is really nice - so you get some spill over.
Good luck looking for anything worthwhile, if you are using the MLS you won't find anything above a 5% cap and it's easy to lose money on real estate.
Progresso Village would be considered up and coming - "Flagler." A lot of the 2-4 plexes are being bought up by large developers and demolished for large apartment buildings.
@Justin Marx I'm a contractor and licensed Realtor in FL and live in Fort Lauderdale. They have what is called windstorm insurance and flood insurance (separate entities). Both are often required if financing. There are homes not on the 100 year flood plane - I'd invest there.
I went down to the Keys after Irma, storm surge / flooding is a major concern - drywall crews are still working.
Hey @Susan O.
Most investors here begin to look towards Broward in order to score a better return. To settle for 0.7% in an area like Lakeridge is settling short. I'm finding 3-4 units in rising markets in Miami getting same numbers if not closer to 0.8/0.9%.
Thank you TIM for adding the correct info. Its always important you do your own research and not just trust people on the board.
Not every policy will have 'wind' which is for hurricanes. Also, you'll need flood insurance too. A quad in Victoria Park, insurance should run you 6k-10k like the person above said.
Lakeridge will come around eventually, hang in there.
0.7% isn't bad, it all depends on the maintenance. People get too hung up on cap rates. They are meaningless when you have constant repairs. I'd take an easy to manage, no maintenance 6 cap over a pain-in-the-butt, always fixing stuff '10' cap.
That insurance is high!!
So how much would Wind or basic "hurricaine" and flood packages cost. Not exact just worndering how much the range is per unit approximate?
Since yous aid a quad would go for $6k-10k that's about $1250-$2500 per unit
Like for a 10 unit would it be about $12,500 - $25,0000?
its not based on per unit...its based on size, location to the ocean, bay, US-1, 95, etc. as well as replacement value...hurricane windows, new roof, elevated access points, etc. all make for lower costs..
Like my listing for a 4 unit building in miami Beach..we have full impact windows and all the front doors are up 3 steps except 1. so we have really good coverage for under $10k/year. other buildings pay $7k and don't have flood or have very low coverage.
@Tim Kanak Hi Tim, what is it that's making Progesso hot? Do you have any listings there?
No, I don't. I have a Realtor license, but I work primarily as a contractor running a multi-million dollar construction business.
It's a hip area. It's already started turning over (micro brews, craft coffee, restaurants, etc.). You are seeing the Flagler area spilling over. They are transforming it into the Wynwood of Fort Lauderdale and you can see how much real estate in Wynwood costs now.
Hey Tim, I'm new here to FLL, and recently bought a triplex (6/1/18) in Croissant Park that is currently a STR using multiple sites like airbnb, flip key, homeaway, vrbo etc. I would really love to hear your thoughts about STR's in Broward County because although I have only been STR'íng here in FLL for a few months (did STR for 9 years in Seattle's Cap Hill) I fear with all of the costs like vacation rental licensing, business licensing, property taxes, stay tax, insurance, monthly upkeep etc that STR's might not be as profitable as I thought.
Also, who does your cleaning/maintenance etc?
Any thoughts on crew rentals being that Fort Lauderdale is the Venice of North America? I hear that crew rentals are just as profitable as airbnb/homeaway/vrbo. My thought train is how to maximising cash flow income from multiple income streams and not just vacationers.
Maybe you have time one day soon to chat :)
@Susan O. You are likely looking between $6k - $10k (annually) for insurance, depending on purchase price. Rates are going up.
Lakeridge is kind of ghetto now, but it's being developed on 13th. It's right between Wilton Manors, which is really nice and Victoria Park, which is really nice - so you get some spill over.
Good luck looking for anything worthwhile, if you are using the MLS you won't find anything above a 5% cap and it's easy to lose money on real estate.
Progresso Village would be considered up and coming - "Flagler." A lot of the 2-4 plexes are being bought up by large developers and demolished for large apartment buildings.
@Justin Marx I'm a contractor and licensed Realtor in FL and live in Fort Lauderdale. They have what is called windstorm insurance and flood insurance (separate entities). Both are often required if financing. There are homes not on the 100 year flood plane - I'd invest there.
I went down to the Keys after Irma, storm surge / flooding is a major concern - drywall crews are still working.
Tim all those areas were the nicest in Fort lauderdale even the Lakeridge area every block has about 3 flips or a developer putting in a beautiful house. Lakeridge seems to be the next flaglar village. The prices were about $50,000/unit higher in Flagler for the hype but the neighborhood is not that much nicer. Flaglar is closer to the freeway too which seems to be more ghetto
. But The Lakeridge neighborhood seemed to be more residential more like victoria park. It's actually just a block away. There's Single family homes with remodeled fronts that look like whats going on in the Wilton Manors area and the 4 units are great priced. I'm buying a 2-4 plex there and hopefully buying a 8-12 plex soon. Very nice east of the home depot on 15th
No, I don't. I have a Realtor license, but I work primarily as a contractor running a multi-million dollar construction business.
It's a hip area. It's already started turning over (micro brews, craft coffee, restaurants, etc.). You are seeing the Flagler area spilling over. They are transforming it into the Wynwood of Fort Lauderdale and you can see how much real estate in Wynwood costs now.
I might be intersted in renovations on a 2-4 unit