All Forum Posts by: Tushar Pati

That seems unfathomable though to say my unit being one of 3 in the whole building with an ocean view is worth the same as all the others with no view? That makes absolutely no sense to me. I understand it isnt ocean front thats fine,im just saying is the condo not worth even 10-20% more for having a view of the ocean when the others dont? So if the most recent sale came in on the lowest floor with no view for $650/sq ft mine on the top floor with a view of the ocean is worth no premium to that?

Hello, I posted a week ago but I guess it was in the wrong spot so didn't really get the reply I sought. Basically I have a condo that is 2 blocks from the ocean in a midrise in miami beach. The ocean front units are trading at $1200-2000/sq ft 2 blocks away, my condo building trades in the $600-700/sq ft range bc its not oceanfront, but my unit is one of 3 in the entire building that has an ocean view bc its on the top floor and the rest of the units have views of the buildings all around us. Every realtor I've spoken with says the view doesn't matter much bc its still 2 blocks from the ocean. Is this true? I find it hard to believe that a nice view isnt worth anything extra when the surrounding properties are already 100-200% more for the same amenities ie valet,nice gym, concierge which my building has as well.

Thanks for the input.

anyone know a realtor in Miami at least? I bought the unit from a friend going through divorce when purchased so I don't even have a contact in Miami to ask for help with. Thanks

Hello, I posted this question in the landlord forum but they were not sure how to value it before I discuss listing with a realtor. I have a condo in miami beach that is 1 of 3 in the entire building with an ocean view. We are 2 blocks from the ocean but there is a building right infront of us that blocks the view for all the floor except the top floor. On the top floor there are only 3 units on the front facing the ocean directly and you get a clear ocean view. The comps in the building are $620/sq ft avg and all the 1 bedrooms have sold in the $480,000-530,000 range for my floorplan. All the other ones of course have zero view or a view of a building obstructing them. The average rents are $2800-3000/mo, I have it currently leased for $3500/mo so Im getting a premium.

A 2 bedroom in the building recently sold with no view for 720,000 and rented shortly after for $3300/mo.I know cap rates are low, but thats just miami, too many condos, not enough renters, profit is usually made on sale. Anyways Im trying to gauge what the value of being the only 1 on the top floor with a view is. 2 blocks away oceanfront condos are $1200-2000/sq ft in my neighborhood, south of fifth, which is the most expensive part of miami beach. This particular building is cheap bc its 2 blocks from the ocean,doesn't have beach service, but has full gym,valet,24 hour concierge. So what it lacks in amenities it makes up in the fact maintenance is only $.85/sq ft whereas the oceanfront luxury buildings all around are $2/sq ft in maintenance. Similar sized units can be $2000/mo in maintenance vs $680/mo here.

Anyways based of what im getting in rent, and based on how low maintenance fees are, and with the one of a kind view for which there are no comps in my building, of the 3 with ocean view none have sold in over a decade, mine I bought from a friend who was in a bind, getting a divorce. What would you say the premium would be for the view? Thank you

thank you, no I'm fine selling bc as I said I need the cash for a commercial project here, I just want to make sure I don't undervalue it based off the other comps none of which have a view that's why I asked in reference to a recently rented 2 bedroom that got less rent than I'm currently getting but sold for $200,000 more than the most recent 1 bedroom comp

I guess my question also is in residential do cap rates not matter like commercial i.e. A 2 bedroom is $750,000 and is 1100 sq ft vs 850 sq ft but the 1 bedroom rents for $3500 while the 2 bedroom gets $3500 as well? Because one unit just sold for $715k and was just rented for $3300 meanwhile no 1 bedroom has topped $530k

I wish I could but building requires 6 month leases at a minimum. The thing is he is currently paying the same rent as 2 bedrooms without a view in the building that sell for $750k. There's 200 units in the mid rise and only 3 have a water view bc they're on the top floor and miss the building in front of us. It's whole city block but 3 are on the front side of the first tower that's it. I can ask $4k but that would be $1000/mo more than non view and he's already paying $500 extra I just don't know it's value I suppose. Anyways in terms of addition to value what does a view like that add? Someone said 20% is that about right?

really? 0? Because other units sit in this building for a few months before getting rented, its not that easy to find a renter in miami beach. If someone owned it they could lose money for a few months vs getting a tenant paying the highest rent of any 1 bedroom by $500 + that same tenant would like to iff possible sign a multi year lease right now just so he can settle down and be headache free. I asked if he would like to purchase and said he would love to but does not have the downpayment that would be needed. It seems like a multiyear lease of a tenant paying the highest rent should be worth something extra.

also as someone else mentioned, similar floorplan units without a view sell for $480,000-$520,000 and rent for $2,500-$2,800/mo from looking at past closings. This one is leased now for $3,500 a pretty substantial increase. I know its crazy bc I own some rentals here in texas I paid $40,000 for that get $800/mo but thats how it is out there, believe me Id love to get $5,000+ a month but the market just is not there.

Greg I know the rent is low but Miami beach is like this, there is no economy and condos that are $2m rent for $6000/mo and break even bc there are so many. Most people buy in Miami and rents are very cheap bc there is too many condos on the other hand the upside is amazing, some condos if you buy right you can turn around and make 30-50% in a year. It's a market unlike anything you've seen. Anyways thank you all for the advice so mostly get rid of the tenant if I wish to sell and then minimum 20% over the ones with same floor plan and no views selling for $530k?