Input please Broward Dade Condo market

[Mike Terry]

Is anyone else noticing significant drops in the condo market in Fort Lauderdale and Miami?  The list prices seem to be dropping, I am also seeing the words "motivated seller" in a lot of condo listings.  I know a lot of people don't like investing in condos, but I would think this is an over reaction to a terrible pandemic.  This does have an end date.  Just seeking everyone else's observations.  Are there and South Florida condo investors out there?  Thanks.

[Jason Brown]

@Jean-pierre Martinez

Sure. Picked up a condo in Miami beach 2 weeks ago. Plan is to BRRRR this one. Owner had passed away and kids were selling off his portfolio and didn't want to deal with it. Last tenant had been there almost 20 years and it needed a complete rehab.

Its a small 400 sqft studio but it’s south of 5th street on the beach so the location is pretty great. 

Purchase price and closing costs: 62K

Rehab currently in progress: 28K

All in for 90K

ARV: 130K so I plan to pull out the full 90K on my refinance based on 75% LTV.

Rents are comping around 1300 which has me cash flowing about 150 a month including reserves, property management and a monthly 200 HOA. Association has no rental restrictions so I plan to keep as a traditional rental until I see how the city of Miami Beach regulates STRs.

It’s definitely the kind of deal I look for especially if I can get all my dollars out of it from day one.

Sorry I wrote this on my cell so hopefully it’s coherent.