All Forum Posts by: Stephen David Smith Jr.

@Charlie MacPherson

If you’re looking at a condo in Florida—especially one that’s over 30 years old and three or more stories tall—you need to request the Structural Integrity Reserve Study (SIRS) from the association. This report became mandatory after the Surfside condo collapse in 2021, and it’s meant to make sure buildings aren’t neglecting critical maintenance or underfunding reserves. The SIRS only covers structural and safety-related components that have a replacement cost of $10,000 or more. These typically include the roof, foundation, load-bearing walls, fire protection systems, plumbing, electrical systems, waterproofing (like exterior paint and sealants), windows and doors, elevators, stairwells, balconies, and railings. It does not include things like landscaping, amenities, or interior finishes.

The SIRS process involves inspecting each of these components, estimating how many years of life they have left, how much it will cost to replace them, and then calculating how much money needs to be set aside each year to cover that cost on time. The study will spell out the annual reserve contribution required to avoid future special assessments. In Florida, you can no longer vote to waive these contributions—HOAs are legally required to fund reserves based on the SIRS findings.

So when evaluating a condo, don’t just look at how much is currently in the reserve account. You need to compare that number to what the SIRS says should be there. Ask if the association is following the SIRS funding plan. Also check past meeting minutes to see if there have been special assessments, or if major repairs were deferred. A weak reserve account or ignored SIRS recommendations are red flags. That’s often how you end up with sudden six-figure bills.

Note on Galveston, TX: Texas does not currently require structural reserve studies like Florida does, so the burden is on you to ask the right questions. You should still request any reserve study the association has done (even if voluntary), review financials, ask about the reserve balance, deferred maintenance, and any recent or upcoming special assessments. Especially in coastal areas with wind and salt exposure, the risks are real—even without a law forcing inspections.

Feel free to reach out if you revisit Florida or discuss anything in more detail.

Hi @Adam Lowe,

I appreciate your outreach through the BP's agent finder, I will give you a call tomorrow.

My team specializes in investment properties and property management.

Hi @Jordan Ray, I specialize in collaborating with developers and builders, supported by a dedicated team that can assist with projects of any scale. Whether it's single-family homes or large institutional multifamily developments, we bring extensive experience to every stage—from contract negotiations and due diligence to entitlements and capital stack structuring. 

What are you looking for our doing on the development front?

Hi @Chris Lee

My team and I specialize in the South Florida market. Let's schedule a time to discuss your goals for expanding your portfolio into South Florida, feel free to message or email me. Here are some of the markets in Miami I would consider:

1. Little Havana: This culturally rich neighborhood offers numerous multi-unit properties like duplexes and triplexes. Its central location and affordable housing options make it attractive to families and young professionals, providing stable rental income and potential for appreciation.
2. Wynwood: Known for its vibrant art scene, Wynwood has seen significant development recently. The area attracts creatives and entrepreneurs, leading to a strong rental market and promising long-term appreciation.
3. Edgewater: Close to downtown Miami with waterfront views, Edgewater has experienced substantial growth due to new developments. Its proximity to business districts makes it appealing to professionals seeking rentals.
4. Allapattah: An emerging neighborhood gaining attention for affordability and increasing development projects. Investing here could offer significant appreciation as the area continues to evolve.
5. North Miami: Offers more affordable investment opportunities compared to central Miami. With a diverse community and access to universities, it attracts a steady flow of renters.
6. Coconut Grove: A historic neighborhood with parks, shopping districts, and bayfront access. While property prices are higher, its desirability leads to stable rental income and strong appreciation potential.
7. Brickell: Miami's financial hub bustling with young professionals. Multi-unit properties here can command premium rents, though the initial investment is substantial.

If you're looking for long-term capital appreciation with steady cash flow, you may want to target newer properties with lower cap rates rather than older properties with higher cap rates. While higher cap rates on older properties can offer more immediate cash flow, they often come with increased risks such as higher maintenance costs and less potential for appreciation due to their age. Newer constructions not only have the potential for greater appreciation but also adhere to the latest building codes, which can lead to lower insurance premiums. This can enhance your net returns over time and reduce unforeseen expenses associated with older properties.

Let's connect soon to delve deeper into your options and find the best fit for your portfolio.

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Location: Miami, Florida

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Hi @Account Closed,

Purchasing a pre-construction condo in Miami for the purpose of short-term rentals (STR) is a lucrative one given Miami's unique position in the global real estate market. Here's why:

1. Long Term Hold for Appreciation:

• Pros: Miami's real estate has historically shown strong appreciation, especially in prime areas. The city's rising stature as an international tourist and business hub, combined with limited waterfront property, suggests a promising upward trajectory for property values.

2. Maximize Cashflow via STR:

• Pros: As a top-tier tourist destination, Miami promises a continuous stream of potential STR guests. With effective management, properties in the right neighborhoods can yield handsome returns, potentially meeting or often exceeding your 7-8% net target.

Regarding the most attractive area: Each neighborhood you've mentioned offers unique benefits:

• Miami Beach: A world-renowned destination with high demand from tourists year-round. This area often commands premium rental rates.
• Miami Downtown: The epicenter of Miami's business and cultural scenes. It's a magnet for both tourists and business travelers.
• Brickell: A luxurious enclave known for attracting affluent visitors and business travelers.
• Midtown: A vibrant, upcoming area appealing to younger travelers seeking a mix of local culture, shopping, and dining.

Given your budget and the goal of purchasing two condos, investing in a combination of these areas could optimize both appreciation and rental income. For instance, one property in a tourist hotspot like Miami Beach and another in an urban center like Downtown could offer a balanced portfolio. On the flip side having 2 residences in one building does bring efficiencies from a management/ownership standpoint.

Finally, the payment structure you mentioned (30-40% until project completion) is fairly standard for pre-construction properties. Ensure you have a clear contract that outlines the terms and protects your interests. As a broker in the South Florida market, I've witnessed the opportunities Miami offers. I'd be more than happy to discuss further and provide insights tailored to your goals. Wishing you success on your investment journey.

I have 3 vacant parcels in Venice off-market that can be zoned for quads for a total of 12 doors.

Hi @Sanju Walia,

Understanding zoning can indeed be a bit tricky, especially since each municipality can have its own nuances.

Based on the zoning description you've provided: "0803 MULTIFAMILY 2-9 UNITS : MULTIFAMILY 3 OR MORE UNITS", it suggests that the property is zoned for multifamily use with anywhere between 2 to 9 units. Given that your 4plex MF property falls under this range, it aligns with the current zoning.

However, to determine if you can build up to 9 units on the property, there are a few things to consider:

1. Existing Structure & Occupancy: If you already have a 4plex on the property, then you'll need to see if there's sufficient land and infrastructure to accommodate an additional 5 units without violating other zoning requirements, such as setbacks, parking, and green space.
2. Infrastructure and Utilities: Even if you can physically fit 9 units, you'll need to ensure that utilities (like water, sewage, and electricity) can handle the increased capacity.
3. Other Restrictions: There might be other local regulations, covenants, or restrictions that could limit the number of units or the type of construction you can do.
4. Parking & Accessibility: Increasing the number of units might also come with the requirement for additional parking or other accessibility features.
5. Approval & Permits: Just because a property is zoned for a certain number of units doesn't mean you can automatically build up to that number. You'll typically need to get building permits, and depending on the scale of the construction, you might need to go through a site plan approval process.

The best course of action would be to contact Miami-Dade's zoning or planning department directly. They can provide clarity on the specific regulations and requirements for your property.

Best of luck with your investment!

@Anthony Montano

Please share what she has available in Charlotte County, Thank You.

Hi @Daylen Fiallo

My email is in my post signature, I look forward to reviewing the offerings.