All Forum Posts by: David O.

@Luther Joseph @Jose Alonso @Taneisheo Ferguson @Daniel Heller

Miami is a very trick city and you must be very familiar with the major markets and sub-markets to be a successful investor in this town where everyone is after a dollar. You must know the acquisition prices intimately, be disciplined, know when to walk away, know the the market rental rates, and be a very strong operator when managing the properties. rices can increase (or drop) dramatically within a few blocks, and you do not want to be caught overpaying.

In Miami and South Florida in general, I would invest in small multifamilies (duplex, triplex, fourplex's etc, depending on your budget) with a value add potential (i.e., below market rents, filling up vacancies, renovations, etc).

Whether you buy and hold or flip, I believe multi-families is the best and safest way to go, for new and experienced investors alike. See an example of a Miami deal I did in my post here on BP:

https://www.biggerpockets.com/forums/223/topics/379843-100-cash-on-cash-roi-in-92-days---duplex-in-miami-fl-case-study

Look for emerging markets and gentrifying neighborhoods in Miami, in strong urban core areas with very low vacancy rates. Multifamilies in Miami Beach, for example, are very expensive and usually purchased by foreign investors for wealth preservation and diversification purposes, and sell for very low cap rates.

However, throughout many different areas of Miami, there are a lot of older, tired landlords and property managers that are either too lazy, too comfortable, or not aware of the high rents the Miami markets are commanding.

Moreover, management is the second most important aspect. I personally manage all my properties because I have had not any access with a strong property management company. At the end of the day, you are the one that will care the most about your investment and your money. 

@Manuel Marine

Welcome to the forums.

In regards to your question, I would definitely partner with an experience flipper or investor before jumping into your first deal. Miami is a very trick city and you must be very familiar with the major markets and sub-markets to succeed. You must know the acquisition prices intimately, the market rental rates, and be a very strong operator when managing the properties. Prices can increase (or drop) dramatically within a few blocks, and you do not want to be caught overpaying.

Moreover, you need to use a contractor in Miami that has a demonstrable track record, is investor friendly, and understand real estate principles intimately. Most contractors I dealt with would just try to charge the most money they can and not try to point out ways that can reduce costs while delivering the finished expectation of the product )which varies, i,e, a $200k single family home rehab vs. $1.5 million mansion rehab vs.4 unit multifamily rehab).

I’ve partnered with investors where they provide the capital for the acquisition, and I will invest my own money alongside them as an investor and manager from top to bottom – utilizing my construction company to fund the entire renovation + property management and final disposition of the property (if it’s a flip). Other times we will refinance the property, return all investor money (including mine) and hold a property indefinitely for the long term J I also even bring the deal to the table most of the time for the investors who I have worked with a lot and trust my track record.

Just food for thought. You can learn a lot from a mentor, but in my opinion, don’t pay for a class or seminar. If you are going to find a mentor, find one who is willing to put skin in the game with you and offer the value that a true mentor should bring. 

@Alain Amaran

To answer your question I am referring to one of my previous posts that I hope shed some light on which asset type you should start investing in Miami:

There is lots of condo development going on in Miami Beach, Brickell, Downtown. I do not think the condo market is a good investment right now in Miami. Very high prices, saturated market with lots of inventory, and very little cash flow after HOA fees. In Miami and South Florida in general, I would invest in small multifamilies (duplex, triplex, fourplex's etc, depending on your budget) with a value add potential (i.e., below market rents, filling up vacancies, renovations, etc).

Look for emerging markers and gentrifying neighborhoods in Miami, in strong urban core areas with very low vacancy rates. Multifamilies in Miami Beach are very expensive and usually purchased by foreign investors for wealth preservation and diversification purposes, and sell for very low cap rates.

However, throughout many different areas of Miami, there are a lot of older, tired landlords and property managers that are either too lazy, too comfortable, or not aware of the high rents the Miami markets are commanding.

Miami is a very trick city and you must be very familiar with the major markets and sub-markets to succeed. You must know the acquisition prices intimately, the market rental rates, and be a very strong operator when managing the properties. Prices can increase (or drop) dramatically within a few blocks, and you do not want to be caught overpaying.

Moreover, management is the second most important aspect. I personally manage all my properties because I have had not any access with a strong property management company. At the end of the day, you are the one that will care the most about your investment and your money.

Whether you buy and hold or flip, I believe multi-families is the best and safest way to go, for new and experienced investors alike. See an example of a Miami deal I did in my post here on BP:

https://www.biggerpockets.com/forums/223/topics/37...

Also, for your renovation projects, use a general contractor that is highly recommended and trustworthy.  I am the principal of a construction firm that work with both investors and retail homeowners on their renovation projects in Miami. I started the construction end of the firm after being tired of working with smooth talking contractors that never delivered on time, over budget, and over-priced. I hired several expert tradesman as employees and now I can do my renovation work in-house while providing the same level of investor friendly service and professionalism to investors in South Florida. 

@Arturo Borges Welcome to the BP Community. Have you had any success in investing in Hollywood, FL? It is an area I have been actively looking at as the prices in Miami are as high as ever and the deals harder to find. 

There is lots of condo development going on in Miami Beach (and in Brickell, Downtown, etc). I do not think the condo market is a good investment right now in Miami. Very high prices, saturatd market with lots of inventory, and very little cash flow after HOA fees. In Miami and South Florida in general, I would invest in small multifamilies (duplex, triplex, fourplex's etc, depending on your budget) with a value add potential (i.e., below market rents, filling up vacancies, renovations, etc).

Look for emerging markers and gentrifying neighborhoods in Miami, in strong urban core areas with very low vacancy rates. Multifamilies in Miami Beach are very expensive and usually purchased by foreign investors for wealth preservation and diversification purposes, and sell for very low cap rates. 

However, throughout many different areas of Miami, there are a lot of older, tired landlords and property managers that are either too lazy, too comfortable, or not aware of the high rents the Miami markets are commanding. 

Miami is a very trick city and you must be very familiar with the major markets and sub-markets to succeed. You must know the acquisition prices intimately, the market rental rates, and be a very strong operator when managing the properties. Prices can increase (or drop) dramatically within a few blocks, and you do not want to be caught overpaying. 

Moreover, management is the second most important aspect. I personally manage all my properties because I have had not any access with a strong property management company. At the end of the day, you are the one that will care the most about your investment and your money. 

Whether you buy and hold or flip, I believe multi-families is the best and safest way to go, for new and experienced investors alike. See an example of a Miami deal I did in my post here on BP:

https://www.biggerpockets.com/forums/223/topics/37...

I may be interested in hearing more details. Please send message.

Address please?

add me to your buyers list please.

Great story, I need to start checking out HUD properties, but everything in Miami and South Florida area seems prone to cash deals only / very few HUD inventory.

I would say a market value cap rate for a multifamily building in Little Havana is about 6.5-7%