Home Buying in Surfside>Question Details

Gigi, Home Buyer in Miami, FL

How is the rental market in Surfside? Is a 3/2 significantly better than a 2/2? With the high insurance n taxes, it seems hard to make it work.

Asked by Gigi, Miami, FL Sat Nov 19, 2011

I am looking to buy a small home in Surfside to rent it out for several years until I retire and can enjoy it full time. My buget is around $ 400K. I will finance half the purchase. I do not know exactly what rents go for but I figured about 2K for a 2/2 and 2500 for a 3/2. Am I in the right range? When I factor in the huge insurance cost (close to 11K), taxes, repairs between tenants and vacancies, it is hard to break even. I would love to hear suggestions from the pros how I could make this work. Is a 3/2 a lot more desirable than a 2/2? How can I minimize the expenses, particularly insurance. I do not want to end up in the negative for years on end. Many thanks in advance for your thoughts.

Help the community by answering this question:


Irina Karan’s answer
Hello Gigi,

Since your long term goal is to retire and live in Surfside, by the beach, I'd say (politely disagreeing here), stay true to your goal because you'll be enjoying Surfside in those retirement years very much!
Don't go buying in Homestead (where there is no water or little shops, restaurants and infrastructure as it is in Surfside and Bal/Bay Harbour)...Rental rates here are higher than in Homestead also, and the value will appreciate much much better (there is so much/so little of the beach and beach-y areas). The rental market is very hot right now.

I'd say go with 2/2 as it is more popular and more affordable for tenants.
3/2s are usually rent for a year or max 2 years, and then buy.
2/2 tenants stay longer usually.

This will be a less expensive buy for you, less money spent on taxes, and I feel you'll be very happy
here in Surfside (with your rental and your future home)!

Irina Karan
Beachfront Realty, Inc.
0 votes Thank Flag Link Sun Mar 25, 2012
Hi Gigi,
The rental market is very busy with low vacancy rates in South Florida right now. It is because of course the foreclosure market hit hard and these people now need to live somewhere and cannot buy due to credit issues and tight banking regulations.

Your rental rates are about right, even a bit low due to the lack of inventory.
I did a search of the active and rented houses in Surfside and it is here:


Be sure to click through the llst from the arrow on the top left.. There are currently only 4 active rental houses is Surfside.

I feel your estimates for your insurance cost is what is high, possibly double. A house, even if a flood zone should not cost almost 1000/month to insure. A client of mine has a 2 bedroom home in a flood zone and she is paying about 450/month. I think you could have that number re-evaluated by several insurance agents, however it is difficult for thenm to give an exact amount not knowing the house you will buy, but they can do the estimated based on the location.

The taxes will be approximatly 1,8-2% of your assessed value, so at 400.000 they will be approximatly 7200/year, because you will not be able to take a homestead exemption until you live in the home full time.

When I use these numbers and include your mortgage I feel you are very close to breaking even. You do have to keep in mind that at teh low interest rates and the prices of property being at a low, you will be saving later if the prices go up and the interest rates increas, which we know they will!

I would be glad to find some insurance estimates for you and also send you the options for purchase to evalutate your options. I feel you could be very close to a break even with yoru rental.

Feel free to contact me directly and I will send you what I can find that fits your criteria.

Beth Jenkins'South Florida Brokers
Web Reference: http://www.arealtyteam.com
0 votes Thank Flag Link Sat Nov 19, 2011
Gigi, depending on your timeline, you might want to look at Homestead instead. Purchase a house there as an income generator, and get a hedge against home prices rising in Florida. Then, when you actually retire, you can decide if you would want to sell that rental property, or continue to use it to generate income.

Surfside Purchase price $329,000+, Current Rental prices $1360+
Homestead purchase price $42,000+, Current Rental prices $700+

It doesn't take a lot of math to realize the Homestead option is actually the better investment... however, you probably won't want to live in the Homestead property when you actually retire.
0 votes Thank Flag Link Sat Nov 19, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer