The Miami Market is Overrated?

[Alberto Freites]

Hi everyone,

Good afternoon! I wanted to post a question to this forum. 

I'm from Venezuela, living in Miami with my family. For many years, I've been studying and following this community to dive into the world of real estate as an investor. My goal is to purchase my first duplex or triplex in this area in 2024. (Using house hacking strategy)

I would love to receive feedback regarding this region from more experienced investors. Do you guys believe that South Florida is overvalued? Mi

Thank you,

[John Karg]

Hi Alberto, 

Personally, I don't believe Miami or South Florida is overvalued in the sense that a decline in home prices is coming. However, it is a highly desirable area which results in very low cap rates. Thus it is very difficult to cash flow with a rental property, however you can still make a great return with appreciation. 

House hacking is an excellent strategy, and just got a lot easier as conventional loans now allow 2-4 units with only a 5% down payment. The rent from the other units is used to help you qualify for the loan as well. I'd be happy to go over any loan questions you might have, so feel free to reach out anytime! 

John