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,

[V.G Jason]

Quote from @Bob Stevens:

Quote from @V.G Jason:

HOI & HOAs have been killer here, but if you're going to hedge your bets than house hacking is as sound as it gets. South Florida will face a hit, I believe, in the housing market but not necessarily Miami. Miami, as a market, is the pretty primo.

Lived here for quite some time & sold a couple months back.

 One of my best friends owns one the largest brokerages in Miami, she says do not touch it, its going to crash.  The deals there I have seen maybe net 2% terrible 

Miami's volatility will be high, just cause that's the nature of some markets. A crash? I doubt it, a correction--sure. There's also a point about intra-miami, my place went for over list and had several exploding all cash offers within 72 hours. My trainer's place couldn't get traction for 5 months. Location is causing the hyper discrepancies it looks like above average to the bottom are stagnating to falling but great to primo locations of Miami are still perma-bid.

I think that trend will be  nationwide, but I expect the rest of coastal florida(outside of primo Miami) to get a harsh correction.

[Carlos Ptriawan]

Quote from @V.G Jason:

Quote from @Bob Stevens:

Quote from @V.G Jason:

HOI & HOAs have been killer here, but if you're going to hedge your bets than house hacking is as sound as it gets. South Florida will face a hit, I believe, in the housing market but not necessarily Miami. Miami, as a market, is the pretty primo.

Lived here for quite some time & sold a couple months back.

 One of my best friends owns one the largest brokerages in Miami, she says do not touch it, its going to crash.  The deals there I have seen maybe net 2% terrible 

Miami's volatility will be high, just cause that's the nature of some markets. A crash? I doubt it, a correction--sure. There's also a point about intra-miami, my place went for over list and had several exploding all cash offers within 72 hours. My trainer's place couldn't get traction for 5 months. Location is causing the hyper discrepancies it looks like above average to the bottom are stagnating to falling but great to primo locations of Miami are still perma-bid.

I think that trend will be  nationwide, but I expect the rest of coastal florida(outside of primo Miami) to get a harsh correction.

 some cities (miami,san diego) created their own market that's hard to compare to other market because of the immigration pattern and status. Miami in particular is receiving money and people from south, north and the west. While San Diego is receiving cash from the surrounding cities. 

[Carlos Ptriawan]

so comparing miami to ohio or kansas or iowa is very wrong in my own opinion, because you are comparing diet coke with unsweetened tea, once the economy created its own pattern of success , comparing it to other town would not be accurate becoz the methodology of understanding the phenomenon has not been researched yet.

like california is now the strongest market in usa although price wise it is the second highest and huge pop declines.

[John Karg]

Quote from @Ghenia Flewellyn:

@John Karg

Hi John! Can I get your contact info? I'm a SoFl investor. Thank you!

 Hi Ghenia, I just sent you a PM.

[Carlos Ptriawan]

Quote from @Bob Stevens:

Quote from @Carlos Ptriawan:

Quote from @Bob Stevens:

Quote from @Obed Calixte:

What are your goals for the property? 

There are deals in every market whether they are overvalued, oversaturated etc. It may take a little bit of time, hussle and creativity to find the one for you, but it is out there.

 Where, I lived in Dunedin for two years, the pricing is ridiculous, 500k for 1200 sq ft nothing of homes? 

 $400 PPSF ? lol ...that's middle class house.

but yea nothing make sense if we see current valuation using past mirror, but if we're alien came from future then we may say "oh this makes sense".

The point is these are nothing of homes selling for 500k, most do not even have a garage. Alien lol. I will not touch anything in FL, for now. This is one of my old homes, nothing of a house, the garage was converted to a MB, it sold in like 3 days cash, INSANE price.  

We put in two new baths, kitchen, and a nice landscaping package. Not sure why there are no photos, If I recall we did not even have to list it, the neighbor bought it Now its even more overpriced, 

1818 Douglas Ave, Dunedin, FL 34698 | Zillow

Continue crushing it bro 

 wow this market is crazy, 34698 has income median of 89k only with only 15% sale over listing. Sale to sold ratio is 5:1 wow but price is flattening without reduction of seasonality ; basically this market is bought by in-migration from NYC/MA area pretty much, it's not an organic growth.

[V.G Jason]

Quote from @Bob Stevens:

Quote from @Carlos Ptriawan:

Quote from @Bob Stevens:

Quote from @Obed Calixte:

What are your goals for the property? 

There are deals in every market whether they are overvalued, oversaturated etc. It may take a little bit of time, hussle and creativity to find the one for you, but it is out there.

 Where, I lived in Dunedin for two years, the pricing is ridiculous, 500k for 1200 sq ft nothing of homes? 

 $400 PPSF ? lol ...that's middle class house.

but yea nothing make sense if we see current valuation using past mirror, but if we're alien came from future then we may say "oh this makes sense".

The point is these are nothing of homes selling for 500k, most do not even have a garage. Alien lol. I will not touch anything in FL, for now. This is one of my old homes, nothing of a house, the garage was converted to a MB, it sold in like 3 days cash, INSANE price.  

We put in two new baths, kitchen, and a nice landscaping package. Not sure why there are no photos, If I recall we did not even have to list it, the neighbor bought it Now its even more overpriced, 

1818 Douglas Ave, Dunedin, FL 34698 | Zillow

Continue crushing it bro 

 These are the types of coastal FL and even more south like cape coral that'll just have to get corrected. There's no way around it'; local economy does not support prices enough even if it's all outsider economy then infrastructure does not support. Coupled with HOI restrictions, it'll get even harder. People who buy all cash and dismiss HOI will be in for a rude awakening if storms come.

[Carlos Ptriawan]

i think what @Bob Stevens mentioned is that his zip code average income is equal to his Ohio rentals, while home price 3x differences. In this context usually what happen is there're longer flattening period or reduced price growth once the immigration stopped, just like Austin. But yea the number of trend for "home for sale" in that zip code is pre-cursor for a downturn.

[Dan H.]

Quote from @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,

 I believe virtually all markets are over valued, but over the long term many (including my primary market) will have appreciation in excess of CPI. 

Here is my case for over valued in general:

- over a decade in f unprecedented price increases

- rates have doubled significantly raising the cost of a high LTV purchases, but in most markets there have been no corresponding price decrease.
- a study on rent cost compared to ownership cost shows that virtually every large city market it is initially cheaper to rent than own (I believe is was cheaper to went in 97 of the largest 100 markets)

Miami and Florida have extra concerns:

- insurance difficulties have resulted in large increase in insurance costs.  My market also has this issue but I suspect less than Florida but my umbrella cost doubled last year.

- as yet unknown impact from required structural inspections (bill 154). My view is inspectors find problems, it is their job.  So there will be the cost of the inspections (not cheap) and the cost of the repairs.  In my market we have similar requirement on stairs and balconies only.   I am expecting items to be found even though there is no visible signs of any issues.

I will not be surprised if in the near term the prices fall a little.  In the long term I expect Miami to outperform CPI because it is a destination location and coastal land is more constrained than inland (such as Midwest, central, etc).  The coastal land is already near built out including Miami.  There is not going to be more landed added (but may be some land lost).

Good luck

[Carlos Ptriawan]

Quote from @Dan H.:

Quote from @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,

 I believe virtually all markets are over valued, but over the long term many (including my primary market) will have appreciation in excess of CPI. 

Here is my case for over valued in general:

- over a decade in f unprecedented price increases

- rates have doubled significantly raising the cost of a high LTV purchases, but in most markets there have been no corresponding price decrease.
- a study on rent cost compared to ownership cost shows that virtually every large city market it is initially cheaper to rent than own (I believe is was cheaper to went in 97 of the largest 100 markets)

Miami and Florida have extra concerns:

- insurance difficulties have resulted in large increase in insurance costs.  My market also has this issue but I suspect less than Florida but my umbrella cost doubled last year.

- as yet unknown impact from required structural inspections (bill 154). My view is inspectors find problems, it is their job.  So there will be the cost of the inspections (not cheap) and the cost of the repairs.  In my market we have similar requirement on stairs and balconies only.   I am expecting items to be found even though there is no visible signs of any issues.

I will not be surprised if in the near term the prices fall a little.  In the long term I expect Miami to outperform CPI because it is a destination location and coastal land is more constrained than inland (such as Midwest, central, etc).  The coastal land is already near built out including Miami.  There is not going to be more landed added (but may be some land lost).

Good luck

 I compare your San Diego zip code 92154 and his Miami zip code, the most differences is sale-to-list ratio that's trending up in Miami zip code with 5:1 ratio. San Diego 92154 has median income of 120k with price only 750k so it's pretty affordable. Yet the sale to sold ratio is 1:1.
 

I would say Miami is more fragile....this explains why CA home price keeps going up. I checked all state basis only CA can sustain high growth in home price. 2024 would be fun.

[Dan H.]

Quote from @Carlos Ptriawan:

Quote from @Dan H.:

Quote from @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,

 I believe virtually all markets are over valued, but over the long term many (including my primary market) will have appreciation in excess of CPI. 

Here is my case for over valued in general:

- over a decade in f unprecedented price increases

- rates have doubled significantly raising the cost of a high LTV purchases, but in most markets there have been no corresponding price decrease.
- a study on rent cost compared to ownership cost shows that virtually every large city market it is initially cheaper to rent than own (I believe is was cheaper to went in 97 of the largest 100 markets)

Miami and Florida have extra concerns:

- insurance difficulties have resulted in large increase in insurance costs.  My market also has this issue but I suspect less than Florida but my umbrella cost doubled last year.

- as yet unknown impact from required structural inspections (bill 154). My view is inspectors find problems, it is their job.  So there will be the cost of the inspections (not cheap) and the cost of the repairs.  In my market we have similar requirement on stairs and balconies only.   I am expecting items to be found even though there is no visible signs of any issues.

I will not be surprised if in the near term the prices fall a little.  In the long term I expect Miami to outperform CPI because it is a destination location and coastal land is more constrained than inland (such as Midwest, central, etc).  The coastal land is already near built out including Miami.  There is not going to be more landed added (but may be some land lost).

Good luck

 I compare your San Diego zip code 92154 and his Miami zip code, the most differences is sale-to-list ratio that's trending up in Miami zip code with 5:1 ratio. San Diego 92154 has median income of 120k with price only 750k so it's pretty affordable. Yet the sale to sold ratio is 1:1.
 

I would say Miami is more fragile....this explains why CA home price keeps going up. I checked all state basis only CA can sustain high growth in home price. 2024 would be fun.

 San Diego’s average house hold income is about what you stated, but the median is a surprisingly low (considering US news and world report lists it as the most expensive US city) ~$100k.  The low income versus high cost of living is referred to locally as the sunshine tax. 

https://www.businessinsider.com/most-expensive-places-to-liv...

https://www.census.gov/quickfacts/fact/table/sandiegocitycal...

It is my view that the incomes cannot sustain the high cost of housing in San Diego but it has seemed this way to me for four decades and yet the RE prices keep increasing.  Non-locals with money moving here.  Low income choosing high occupancy to stay here.  I recently had someone with 7 people wanting to rent a little 2 BR, 1 Ba, ~650’ unit.  That is crazy high occupancy but they cannot afford even the high occupancy options (in this case a 3BR unit). And buying in this high rate market makes even less sense as the near term cost of ownership is much greater than renting.  It explains why it has been 2 years since my last purchase (I purchase $4m that month with good timing). The desire to buy something is getting too high as 2 years without a purchase is too long for me.   I may need to purchase something that numbers do not meet my normal criteria.  Need something to play with, so maybe different market for something new.  I will not expect it to match my usual return.

[Katie Peugh Davis]

Good Afternoon,

Thank you, for sharing your story.  I also am an investor and real-estate broker. If you are looking for a growing market and area that you could get more "bang for your buck" with less risk. I would recommend checking out Northwest Florida (Crestview, Niceville, Destin).  Our area is booming with growth with being nestled amongst 3 major military bases.  Most of the tenants are military so rent is guaranteed with their base housing allowance.  in addition to the military growth the tourism from our emerald coast beaches is flourishing.  I would be happy to send you some area comps to look at! Best regards! 

[V.G Jason]

Quote from @Dan H.:

Quote from @Carlos Ptriawan:

Quote from @Dan H.:

Quote from @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,

 I believe virtually all markets are over valued, but over the long term many (including my primary market) will have appreciation in excess of CPI. 

Here is my case for over valued in general:

- over a decade in f unprecedented price increases

- rates have doubled significantly raising the cost of a high LTV purchases, but in most markets there have been no corresponding price decrease.
- a study on rent cost compared to ownership cost shows that virtually every large city market it is initially cheaper to rent than own (I believe is was cheaper to went in 97 of the largest 100 markets)

Miami and Florida have extra concerns:

- insurance difficulties have resulted in large increase in insurance costs.  My market also has this issue but I suspect less than Florida but my umbrella cost doubled last year.

- as yet unknown impact from required structural inspections (bill 154). My view is inspectors find problems, it is their job.  So there will be the cost of the inspections (not cheap) and the cost of the repairs.  In my market we have similar requirement on stairs and balconies only.   I am expecting items to be found even though there is no visible signs of any issues.

I will not be surprised if in the near term the prices fall a little.  In the long term I expect Miami to outperform CPI because it is a destination location and coastal land is more constrained than inland (such as Midwest, central, etc).  The coastal land is already near built out including Miami.  There is not going to be more landed added (but may be some land lost).

Good luck

 I compare your San Diego zip code 92154 and his Miami zip code, the most differences is sale-to-list ratio that's trending up in Miami zip code with 5:1 ratio. San Diego 92154 has median income of 120k with price only 750k so it's pretty affordable. Yet the sale to sold ratio is 1:1.
 

I would say Miami is more fragile....this explains why CA home price keeps going up. I checked all state basis only CA can sustain high growth in home price. 2024 would be fun.

 San Diego’s average house hold income is about what you stated, but the median is a surprisingly low (considering US news and world report lists it as the most expensive US city) ~$100k.  The low income versus high cost of living is referred to locally as the sunshine tax. 

https://www.businessinsider.com/most-expensive-places-to-liv...

https://www.census.gov/quickfacts/fact/table/sandiegocitycal...

It is my view that the incomes cannot sustain the high cost of housing in San Diego but it has seemed this way to me for four decades and yet the RE prices keep increasing.  Non-locals with money moving here.  Low income choosing high occupancy to stay here.  I recently had someone with 7 people wanting to rent a little 2 BR, 1 Ba, ~650’ unit.  That is crazy high occupancy but they cannot afford even the high occupancy options (in this case a 3BR unit). And buying in this high rate market makes even less sense as the near term cost of ownership is much greater than renting.  It explains why it has been 2 years since my last purchase (I purchase $4m that month with good timing). The desire to buy something is getting too high as 2 years without a purchase is too long for me.   I may need to purchase something that numbers do not meet my normal criteria.  Need something to play with, so maybe different market for something new.  I will not expect it to match my usual return.

 San Diego is unique to that in America. You see it to a much smaller degree in Miami, as I was moving out we had 3 families rent out one 3br apartment two floors below us. So you'll see a higher overall income per household because the household size grew relative to the price point. You see this in New York, San Fran, Socal, Miami. Very few cities can warrant this type of traction. Outside of the USA you see this almost everywhere, multiple generations in one house. In America, you really need to be a top, top destination city to get this.

[Bob Stevens]

Quote from @Carlos Ptriawan:

i think what @Bob Stevens mentioned is that his zip code average income is equal to his Ohio rentals, while home price 3x differences. In this context usually what happen is there're longer flattening period or reduced price growth once the immigration stopped, just like Austin. But yea the number of trend for "home for sale" in that zip code is pre-cursor for a downturn.

 Income where I live is equal to Cleveland???? No., Where I live in FL is one of the wealthiest areas in America, Palm Beach County. Cleveland is low income, VERY low. The props we purchase are about 100k, so two completely different worlds. Fl is going to correct, big time, this is unsustainable. 

[Alberto Freites]

Quote from @Bob Stevens:

Quote from @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 uin 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,

 YES, most of Fl is overpriced big time, 900- 1100 a sq ft is insane. There is a crash coming. Cash will be king in about 12- 16 months. 1st the condo market, its already happening. As they all need to pass the structural inspections by the end of 2024. Many cannot afford the assessments. My building is averaging about 20k per unit. I know some that are 50- 150k per unit. those folks will dump. This will spill over to the housing market Price reductions are happening everywhere. Title cos are slowing down and even going out of biz. My neighbor around the corner just paid 4.5 MILL for a 3500 sq ft house, that s grossly overpriced, 1100 a sq ft, obscene. Miami/ Coral Gables, even worse. 1500 1700 brick houses without a garage on main roads (Byrd ave for example) 1.5 MILL is just nuts. The kids have to park on the lawn, so it looks like the ghetto and you can't even get out of your driveway, to much traffic. Try finding a great deal where you net even just 10% not going to be easy. 

Be very careful, 

All the best 

I have 2 questions.

What happened if the buildings don’t pass the structural inspections by the end of 2024? What happens if, as the owner of the property, you do not do this inspection?

[Alberto Freites]

Quote from @Katie Peugh Davis:

Good Afternoon,

Thank you, for sharing your story.  I also am an investor and real-estate broker. If you are looking for a growing market and area that you could get more "bang for your buck" with less risk. I would recommend checking out Northwest Florida (Crestview, Niceville, Destin).  Our area is booming with growth with being nestled amongst 3 major military bases.  Most of the tenants are military so rent is guaranteed with their base housing allowance.  in addition to the military growth the tourism from our emerald coast beaches is flourishing.  I would be happy to send you some area comps to look at! Best regards! 

 Can you please send me more info about it?

[Bob Stevens]

Quote from @Alberto Freites:

Quote from @Bob Stevens:

Quote from @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 uin 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,

 YES, most of Fl is overpriced big time, 900- 1100 a sq ft is insane. There is a crash coming. Cash will be king in about 12- 16 months. 1st the condo market, its already happening. As they all need to pass the structural inspections by the end of 2024. Many cannot afford the assessments. My building is averaging about 20k per unit. I know some that are 50- 150k per unit. those folks will dump. This will spill over to the housing market Price reductions are happening everywhere. Title cos are slowing down and even going out of biz. My neighbor around the corner just paid 4.5 MILL for a 3500 sq ft house, that s grossly overpriced, 1100 a sq ft, obscene. Miami/ Coral Gables, even worse. 1500 1700 brick houses without a garage on main roads (Byrd ave for example) 1.5 MILL is just nuts. The kids have to park on the lawn, so it looks like the ghetto and you can't even get out of your driveway, to much traffic. Try finding a great deal where you net even just 10% not going to be easy. 

Be very careful, 

All the best 

I have 2 questions.

What happened if the buildings don’t pass the structural inspections by the end of 2024? What happens if, as the owner of the property, you do not do this inspection?

 Then reno will begin and the owners are all being bit will be assessments. My building is about 22k per unit. I know others that are getting hit with up to 150k per unit. You do not own the building, so no choice but to have the inspection. 

[Carlos Ptriawan]

Quote from @Bob Stevens:

Quote from @Carlos Ptriawan:

i think what @Bob Stevens mentioned is that his zip code average income is equal to his Ohio rentals, while home price 3x differences. In this context usually what happen is there're longer flattening period or reduced price growth once the immigration stopped, just like Austin. But yea the number of trend for "home for sale" in that zip code is pre-cursor for a downturn.

 Income where I live is equal to Cleveland???? No., Where I live in FL is one of the wealthiest areas in America, Palm Beach County. Cleveland is low income, VERY low. The props we purchase are about 100k, so two completely different worlds. Fl is going to correct, big time, this is unsustainable. 

 so either Fannie Mae is wrong or something else. But I'm not sure why so many people want to leave this zip code ? somebody need to research that aspect first before commiting to investment.

[Bob Stevens]

Quote from @Carlos Ptriawan:

Quote from @Bob Stevens:

Quote from @Carlos Ptriawan:

i think what @Bob Stevens mentioned is that his zip code average income is equal to his Ohio rentals, while home price 3x differences. In this context usually what happen is there're longer flattening period or reduced price growth once the immigration stopped, just like Austin. But yea the number of trend for "home for sale" in that zip code is pre-cursor for a downturn.

 Income where I live is equal to Cleveland???? No., Where I live in FL is one of the wealthiest areas in America, Palm Beach County. Cleveland is low income, VERY low. The props we purchase are about 100k, so two completely different worlds. Fl is going to correct, big time, this is unsustainable. 

 so either Fannie Mae is wrong or something else. But I'm not sure why so many people want to leave this zip code ? somebody need to research that aspect first before commiting to investment.

 Carlos I have no idea what you are referring to ?  Leave what zip code? You mentioned the area I live in is equal to Cleveland income. Palm Beach income is the same as Cleveland? 

[Carlos Ptriawan]

Quote from @Bob Stevens:

Quote from @Carlos Ptriawan:

Quote from @Bob Stevens:

Quote from @Carlos Ptriawan:

i think what @Bob Stevens mentioned is that his zip code average income is equal to his Ohio rentals, while home price 3x differences. In this context usually what happen is there're longer flattening period or reduced price growth once the immigration stopped, just like Austin. But yea the number of trend for "home for sale" in that zip code is pre-cursor for a downturn.

 Income where I live is equal to Cleveland???? No., Where I live in FL is one of the wealthiest areas in America, Palm Beach County. Cleveland is low income, VERY low. The props we purchase are about 100k, so two completely different worlds. Fl is going to correct, big time, this is unsustainable. 

 so either Fannie Mae is wrong or something else. But I'm not sure why so many people want to leave this zip code ? somebody need to research that aspect first before commiting to investment.

 Carlos I have no idea what you are referring to ?  Leave what zip code? You mentioned the area I live in is equal to Cleveland income. Palm Beach income is the same as Cleveland? 

your FL zip

[Carlos Ptriawan]

[Carlos Ptriawan]

If I see this data Cleveland Income is similar to your zip code but home price is 3x difference. Maybe Fannie Mae is wrong LOL.

[Bob Stevens]

Quote from @Carlos Ptriawan:

If I see this data Cleveland Income is similar to your zip code but home price is 3x difference. Maybe Fannie Mae is wrong LOL.

 Palm Beach is one of the richest areas in America, not sure why you are trying to compare to Cleveland? I am looking out my window at 5 10, 15 mill dollar homes. Cleveland where I do my biz the avg all in price is under 100k, so not understanding, 

All the best 

[V.G Jason]

Quote from @Bob Stevens:

Quote from @Alberto Freites:

Quote from @Bob Stevens:

Quote from @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 uin 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,

 YES, most of Fl is overpriced big time, 900- 1100 a sq ft is insane. There is a crash coming. Cash will be king in about 12- 16 months. 1st the condo market, its already happening. As they all need to pass the structural inspections by the end of 2024. Many cannot afford the assessments. My building is averaging about 20k per unit. I know some that are 50- 150k per unit. those folks will dump. This will spill over to the housing market Price reductions are happening everywhere. Title cos are slowing down and even going out of biz. My neighbor around the corner just paid 4.5 MILL for a 3500 sq ft house, that s grossly overpriced, 1100 a sq ft, obscene. Miami/ Coral Gables, even worse. 1500 1700 brick houses without a garage on main roads (Byrd ave for example) 1.5 MILL is just nuts. The kids have to park on the lawn, so it looks like the ghetto and you can't even get out of your driveway, to much traffic. Try finding a great deal where you net even just 10% not going to be easy. 

Be very careful, 

All the best 

I have 2 questions.

What happened if the buildings don’t pass the structural inspections by the end of 2024? What happens if, as the owner of the property, you do not do this inspection?

 Then reno will begin and the owners are all being bit will be assessments. My building is about 22k per unit. I know others that are getting hit with up to 150k per unit. You do not own the building, so no choice but to have the inspection. 

 For the one's not in Miami or in primo spots of coastal FL, $22k/unit is very good. I haven't heard anyone getting less than $47k/unit and I am pretty confident mine was going to be well over $100k. This will absolutely put pressure to sell-- in the very high end units, the cash buyers know that and are just lurking.

[Bob Stevens]

Quote from @V.G Jason:

Quote from @Bob Stevens:

Quote from @Alberto Freites:

Quote from @Bob Stevens:

Quote from @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 uin 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,

 YES, most of Fl is overpriced big time, 900- 1100 a sq ft is insane. There is a crash coming. Cash will be king in about 12- 16 months. 1st the condo market, its already happening. As they all need to pass the structural inspections by the end of 2024. Many cannot afford the assessments. My building is averaging about 20k per unit. I know some that are 50- 150k per unit. those folks will dump. This will spill over to the housing market Price reductions are happening everywhere. Title cos are slowing down and even going out of biz. My neighbor around the corner just paid 4.5 MILL for a 3500 sq ft house, that s grossly overpriced, 1100 a sq ft, obscene. Miami/ Coral Gables, even worse. 1500 1700 brick houses without a garage on main roads (Byrd ave for example) 1.5 MILL is just nuts. The kids have to park on the lawn, so it looks like the ghetto and you can't even get out of your driveway, to much traffic. Try finding a great deal where you net even just 10% not going to be easy. 

Be very careful, 

All the best 

I have 2 questions.

What happened if the buildings don’t pass the structural inspections by the end of 2024? What happens if, as the owner of the property, you do not do this inspection?

 Then reno will begin and the owners are all being bit will be assessments. My building is about 22k per unit. I know others that are getting hit with up to 150k per unit. You do not own the building, so no choice but to have the inspection. 

 For the one's not in Miami or in primo spots of coastal FL, $22k/unit is very good. I haven't heard anyone getting less than $47k/unit and I am pretty confident mine was going to be well over $100k. This will absolutely put pressure to sell-- in the very high end units, the cash buyers know that and are just lurking.

 As I have mentioned cash will be king in about 12, 16 months

[V.G Jason]

Quote from @Bob Stevens:

Quote from @V.G Jason:

Quote from @Bob Stevens:

Quote from @Alberto Freites:

Quote from @Bob Stevens:

Quote from @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 uin 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,

 YES, most of Fl is overpriced big time, 900- 1100 a sq ft is insane. There is a crash coming. Cash will be king in about 12- 16 months. 1st the condo market, its already happening. As they all need to pass the structural inspections by the end of 2024. Many cannot afford the assessments. My building is averaging about 20k per unit. I know some that are 50- 150k per unit. those folks will dump. This will spill over to the housing market Price reductions are happening everywhere. Title cos are slowing down and even going out of biz. My neighbor around the corner just paid 4.5 MILL for a 3500 sq ft house, that s grossly overpriced, 1100 a sq ft, obscene. Miami/ Coral Gables, even worse. 1500 1700 brick houses without a garage on main roads (Byrd ave for example) 1.5 MILL is just nuts. The kids have to park on the lawn, so it looks like the ghetto and you can't even get out of your driveway, to much traffic. Try finding a great deal where you net even just 10% not going to be easy. 

Be very careful, 

All the best 

I have 2 questions.

What happened if the buildings don’t pass the structural inspections by the end of 2024? What happens if, as the owner of the property, you do not do this inspection?

 Then reno will begin and the owners are all being bit will be assessments. My building is about 22k per unit. I know others that are getting hit with up to 150k per unit. You do not own the building, so no choice but to have the inspection. 

 For the one's not in Miami or in primo spots of coastal FL, $22k/unit is very good. I haven't heard anyone getting less than $47k/unit and I am pretty confident mine was going to be well over $100k. This will absolutely put pressure to sell-- in the very high end units, the cash buyers know that and are just lurking.

 As I have mentioned cash will be king in about 12, 16 months

 Cash is always king, but I think it'll be even sooner where it's even more decisive.