Is Miami Blowing Up for Multi-Family Real Estate Investment?
The real estate market in Miami is attracting a healthy volume attention from savvy investors. Metro Miami and Miami Beach are among the most fantastic places to live in South Florida. While the area connotes grand or luxurious lifestyles, the multifamily housing market is considerably more affordable than other major metro areas. Miami is more than a vacation destination, it’s popular with families, retirees, and young professionals. New and seasoned real estate investors should pay close attention to the development potential in Miami markets.
Stability and Growth
Some investors may be a little wary about South Florida multi-family real estate investments. The region was one of the hardest-hit housing markets during the infamous real estate bubble burst in 2008’s recession. Many property owners saw the values of their buildings and individual units drop dramatically. Since that time, property values have begun recouping their value, yet there is still no shortage of surprisingly low-priced investment opportunities. Meanwhile, the demand for rental housing in the area remains on the rise. New job creation, excellent school systems, and affordability are nurturing solid growth in the rental market.
Compared to other regions, Miami and Miami Beach have a lot of multi-family real estate investment opportunities that don’t require taking on an entire building. Instead, investors are able to purchase several units within a single condominium or apartment building. Investing in several units in one building that’s professionally managed can yield excellent returns without requiring investors to command responsibility for an entire building themselves. Before taking on this strategy, investors can get a clear picture of the revenue levels that they should expect their units to generate based on what other rentals within a building are going for.
However, in looking at condominium buildings, it’s important for investors to thoroughly research an association’s financial statements as well as any capital needs improvements that may be on the horizon. Miami condominiums need to be inspected forty years after they’re built and every ten years thereafter. Passing these mandatory inspections may entail considerable work such as a roof repair or a concrete restoration. Investors should find out about what work has been done recently and what types of assessments have been levied against unit owners.
In addition to job growth and affordability, one of the most alluring qualities of the Miami rental market is its recreational appeal. Miami beaches, nightlife, and the international community make the area extremely popular among South Florida renters.