Investor · Hollywood beach, FL · Member since 2015 · 14 posts · 6 votes
I am looking into buying an investment property in sunny isle beach, FL. It looks like there are a lot of restrictions on SRT and the only available options are condo hotels and some few buildings that has no rental restrictions. While doing some research on condo hotels, I looked at the recent sales from all condo hotels in sunny isle beach listed in the link below. I see the same story of no minimal appreciation or even depreciation in value over the last 10 years in almost all of them. Why is that? What am I missing?
Real Estate Agent · South Florida · Member since 2016 · 35 posts · 17 votes
5y
Hi Reda,
There are a few buildings in Sunny Isles that allow STR and having managed Airbnbs there I have some numbers for what to expect for returns if interested.
I'm also currently working on some deals for clients within the condo hotels, send me a direct message with your number and I can call you to share some knowledge.
Real Estate Agent · Atlanta, GA · Member since 2020 · 1k+ posts · 1k+ votes
5y
@Reda Eldehiry typically, condos are known for not appreciating as much as SFH. Think about it this way, when you purchase a condo, you only own the unit. For a condo purchase, there is no land associated, therefore, value is not as significant as SFH. Also, it's much easier for developers to provide a higher supply of units on a single plot of land, whereas one SFH may take up the same amount of land space.
REALTOR, Investor, and Rehab Expert · Miami Beach, FL · Member since 2015 · 196 posts · 74 votes
5y
@Reda Eldehiry to add to what @Michael Dumler mentioned. It is difficult for a condo to appreciate as an LTR and even more so as an STR when there are hundreds of other identical units and you have limited control over the property in order to force appreciation in terms of paint, renovations, adding a pool, adding pulll-up bars, adding a mini golf, etc.
The only exceptions I've seen in my 6 year RE broker career is when you buy pre-construction or the condo is established and has history of strict management and the local area as a whole is in high demand such as now.
There is a handful of condos in Miami beach that have a history of good and stable income as STRs that I can recommend.