All Forum Posts by: Alberto Freites

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! 

 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 

with the current market micro & macro trends, our market is poised to continue to go up for the foreseeable future.

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.

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