Brian Sereny is right. However he fails to mention that condo conversions are not profitable. So buying these properties is terrible investing. Ever heard of a CD? Much less risk and work for greater reward. Wait another year and re-evaluate then.... more
Elizabeth, there is no way to answer this question in this (and even most) market environments without knowing more about the building you are considering.
Occupancy rates will vary from building to building and in SoBe, these are more seasonal than in other areas (although many rent yearly), and are very much affected by the condo rules where you buy with respect to when can an owner rent, how often can the owner rent (be mindful of current laws about this due to tax rules), if parking is available or included, weather they allow pets, the condition of the building, etc.
Most buildings in SoBe are mostly tenant occupied, while others are mostly owner occupied. Once you norrow your choice to a few buildings, you may contact a local professional Realtor and/or the condo association. Often they can help you with specific information about the building you're considering.
Depending on what you are looking to gain from your investment, you may even want to consider a condo-hotel type property. If you don't think you'll want to worry about maintenance and other issues, these may provide an opportunity for you as well.
That way, you may use it on occassion as you see fit, rent it through their rental program the rest of the time letting them worry about every detail or even, on your own.
Just make sure you consider your goals regardless of the property type you want.... more
What is "appropriate"? In general a cap rate is the return on investment- the higher the initial investment, the higher the cap rate, depending on income, expenses, debt service, etc. The initial purchase price has a great deal to do with the end cap rate too. There is no appropriate cap rate~ Investors generally would like to see about a 5% return on multi-family properties, that is not always possible- depending on the PURCHASE PRICE.... more
A lot of hotel employees do internships for less than a year, so as long as it is furnished, you shouldn't have a problem. Definitely try Craigslist (as Kevin said) and pass the word to all the hotel managers in South Beach.... more
It should take no more than a few weeks in order to secure a tenant for a South Beach apartment. After a quick search of the area, I found very few 2/2's in the price range between $1,800 and $2,200. There are severalfactors that will help get your place rented; condition, price and location are the first few that come to mind.
I guess that your unit is in a 2 story converted apartment building... In that price range- people prefer enclosed high-rise buildings. Perhaps you may consider a price reduction or some other incentive.... more
A great way to get a sense of prices is by looking at closed and pending sales in the area. A lot of the "deals" we are seeing come in the way of larger spreads between closed vs. listing prices.
Please click here for closed and pending sales of condos in South Beach since March 01, 2008 http://sef.mlxchange.com/Pub/EmailView.asp?r=784537380&s=SEF&t=SEF and here for closed and pending sales of single family homes over the same period of time http://sef.mlxchange.com/Pub/EmailView.asp?r=368980465&s=SEF&t=SEF
These are March 2008 statistics for condos in South Beach:
There were 2217 condos listed for sale
There were 56 properties that closed in March
There were 88 properties that went pending in March
The average price per square foot of sold property was $515.00
Properties are selling at 92% of asking price on average
The average price of condos being sold is $577,000.00
There are 39.6 months of inventory in the area
These are March 2008 statistics for single family homes in South Beach:
There were 111 homes listed for sale
There were 3 properties that closed in March
There were 6 properties that went pending in March
There are 37 months of inventory in the area
Hope this is helpful,
South Beach has to be home to one of the most diverse places in the world. I've met someone from so many different countries in Latin America, Europe, Northern Africa, Central Africa, Middle East, and also found my husband who is from South Africa! There are people of all ages, colors, and sizes, to sum it up, South Beach is a melting pot of people worldwide!... more