Quote from @Bob Stevens:
Quote from @Account Closed:
Hey guys,
I am looking into purchasing a new development pre construction condo in Miami that is STR approved for AirBNB. (Most new projects projected for 2026/2027)
I am aware that the market has seen significant gains both in home prices and rental prices over the past few years.
I wanted to get some feedback on your thoughts of making such an investment where the goal is:
1. Long term hold for appreciation
2. Maximize cashflow via STR (hoping to get 7-8% net)
Second question, with these goals which would be the most attractive area for such an investment: Miami Beach, Miami Downtown, Brickell, Midtown.
Thinking of getting 2 condos (1 bd or 1bd + den) ~$750-1M each
Payment structured are usually 30-40% until project is complete
Thank you
Your crazy!! There is a bubble that is going to burst. I will not touch anything in FL unless I can get it 20- 30% off ask.
Institutional investors such as BlackROCK who just bought all major rental highrises in Miami are the sole reason why this market is completely different than the past one you are thinking about. The only time the market ever crashed in Miami seriously was because there was mortgage fraud going on and then the mortgage industry was regulated. Since then there has not been a major crash so it is impossible for a crash like that to ever happen again. Another thing that is unique to this market is that the pandemic opened up institutional investing in residential real estate by such large companies as Black Rock. Commercial real estate has taken a downturn in these commercial buildings are turning into residential buildings as people are working from home more often. Therefore because of the low inventory there is it 0% chance that there's going to be a crash so if you are going to keep this mindset I would highly suggest you do research on what's really going on with regards to inventory because you're going to lose out big time. I could make a case that yes some of the new construction stuff is overpriced that will come down but with regards to anything else besides that there is no market crash in general that's going to happen. Friendly advice and I wish you the very best of luck.
