Deal Analysis - Pre Construction Miami Beach

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Hey guys,

I am trying to asses the deal of a condo in 72 Park Miami Beach

https://72parkmiamibeachcondo.com/

The apartment is 1 Bedroom + 1 Den + 1 Bathroom

755 Sq/f + 195 sq/f Balcony

14th Floor North facing

Price $1,150,000

The building is STR approved and these are the estimated income they sent me:

Daily Rate $530

80% Occupancy

$154,760 Yearly Rent

Management 20% - $30,952

HOA - $12,231

Property Tax - $20,826

Insurance - $1,087

Net Expenses: $34,144

Net profit $89,662 - %7.75

There isn't any other buildings like this in North Miami Beach that can really be compared to, I haven't found any data on AirDNA that can support such an income, and it seems like most new condos in the area are selling for $850 sq/f.

I am trying to understand if this is a good deal, if anyone can give me "insider" insight into the likelihood of achieving such a return and in general what you guys think of this deal

Thanks

[Joe Biscaha]

Quote from @Ray Hage:

It sounds good on paper.  However, the issue is they area really overbuilding condos all over Miami. Personally, I wouldn't want to take this kind of risk and feel like there is a potential condo crash coming. Over time, you would have to worry about things like assessments as well. You also have to trust management will do a good job. 

To me, 530/night sounds very steep and you can be sure it won't be anywhere near that high in the off season....it is quite a lot of variables. Do an airbnb search in that area for Jan/Feb/Mar timeframe and see what's out there as a double check

 Ray I'd like to provide a different perspective on your statement about overbuilding. We are no where near building the same amount of condos built in the last 2 market cycles. Look at the Miami Report by ISG World. No one is predicting a condo crash.