The Start of Real Estate Investing Journey In Miami

[Jean Paul Castellanos]

Hey guys,

I'm new to Biggerpockets, Just wanted to reach out and introduce myself.

 My name is Jean Paul Castellanos. I arrived from Venezuela 8 months ago and since then I've dedicated myself to learn Real Estate.

I am 22 years old and I'm an Industrial Engineer and currently an IoT (Internet of things) Engineering Student at Florida International University, 2 months ago I obtained my Real Estate License here in the state of Florida after working as an assistant for several months to gain experience and knowledge in the field, specifically in the Short-Sale/Foreclosure area.

I've been building my credit since I arrived and filled my taxes, fortunately, I was able to qualify for a conventional loan for an amazing property here in Miami, I would love to hear about your opinion regarding this deal I've picked up to start off my Real Estate Investing Journey.

The property is located in the fast-growing area of Wynwood-Allappatah and has a huge lot of 10,000 SqFt with a 3 Bedroom 2 Bathroom house in "ok" condition that needs an update but could easily rent for $1800-$2000.

The property zoning is T4, which allows an 8 unit multifamily of 2 bedrooms and 1 bath each unit.

I picked up the deal after a few months of negotiating and hard work for $115,000.

Comps run in the range of $300,000 - $280,000 for updated properties with lot sizes of 5000 SqFt or less.

I've received offers for $230,000 and $250,000 AS-IS, but I'm planning to update the property (Rehab cost $30,000). Divide the property into 2 different folios,  sell the house in the price range between $250,000-$280,000, keep half of the property which would be 5000 SqFt of land and prepare a 4 unit development project to build, hold and rent for cash flow.

A 5000 SqFt lot zoned T4 for 4 units in the area is valued around $125,000-$150,000 (could be more).

 So far I believe this is the best way to structure this deal but I'm open to hearing different opinions and ideas to make this even better. It will be very much appreciated.

Scenario #2: Is to build the 8 unit building which will generate amazing cash flow. I do not have a credit history that would allow me to fund that development project yet, but I'm more than willing to partner up and make this happen. I have already structured the estimated building cost and projected income and expenses for the 8 unit building.

See you guys around and let me know what you think!

Your opinion is very important.