First Investment in Miami, FL.

[Yaniel Suarez]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Miami.

Purchase price: $529,000
Cash invested: $132,250

3/1 and 1/1 duplex in Miami, FL. Purchased with a 25% down payment. The property is rented out to section 8 tenants for a total of $4700 currently. The rent for the 3/1 is $3000 and the rent for the 1/1 is $1700. Section 8 is currently sending $4091.00 to my bank account on the first of the month and the total tenant portion is $609.00. Expenses: Mortgage: $3655.55,Property management: $470, Water: roughly 100/month. Total expenses: 4225.55. Cash Flow: 474.45.

Appreciation: 15.5% year over year from May 2023 to May 2024.

Forced appreciation: New paint job for the exterior of both units performed in 2024, Rents raised to market rents in 2024

Pain points: Collection of the tenant portion on time has been an issue. I have had to threaten eviction with 3 day notice.

What made you interested in investing in this type of deal?

The Zip Code of 33147, Miami is experiencing gentrification. I wanted to purchase in an appreciation market.

How did you find this deal and how did you negotiate it?

This was a deal on the MLS. I found it using Redfin and Zillow. I wanted to make sure it cash flowed from day one after the 25% down payment. The deal was analyzed using the Bigger Pockets buy and hold calculator.

How did you finance this deal?

Wells Fargo conventional loan with a 25% down payment.

How did you add value to the deal?

Exterior paint job in 2024: Sherwin Williams Repose Gray for the body, Gauntlet Gray doors, and Pure White trim.

Raised Rents to Market Value: The total rent was 2367 when purchased and only the 3/1 unit was occupied. The 3/1 rent was raised from 2367 to 3000 and the 1/1 was rented out to a new tenant for 1700. Both are section 8 tenants.

What was the outcome?

Current cash flow of 474.45. The cashflow is not great but this is a Zip code with extremely high appreciation (15.5% year over year from May 2023 to May 2024).

Lessons learned? Challenges?

The main challenge is collection of the monthly tenant portion on time for the 3/1 tenant. I prefer not to evict so long as the portion is sent every month, even if it's not on time. Section 8 is currently sending 2496.00 for this particular tenant and her portion is 504.00.

[Andrew Syrios]

Sounds like a solid deal. Congrats Yaniel!