New Investors don’t yell at me! It’s Miami Beach baby, NOT Texas or North Carolina where real estate investments might make you money in the short run. In response to an inquiry on making it all make sense on a $500,000 budget, I’ve relayed the info on what to expect when financing 80% of the value.
Here are the best deals around $400 to $500,000 along Miami Beach
, South Beach
, North Bay Village
(island)… Sale Price to List price average is at 90% with occasional deals at 10 to 20% off list price (especially when cash & fast closing).
Financing 20% of $500,000 you’d have an estimated payment of $2,390 ($400k at 6% Interest 30 year fixed) Click here
This can easily be manipulated based on the type of loan you choose, term, FICO, etc.
Rule of thumb is 2% of purchase price
ie) $500,000 at $10,087 year or $841 month
Here’s the Dade County Tax calculation at $450,000 purchase price.
Countywide at $2,362 City $2,654 State $296 School Board $3,577 Children’s Trust $190 (without HomeStead Exemption located in Miami Beach with a millage rate of $20.1746 per thousand. Total $9,079
In calculating your total monthly expenses, we see an estimated payment of: $3,781 month. I estimated maintenance at $550 plus $841 (Taxes on $500,000) plus $2,390 (PI). Insurance, Water, Sewer, Garbage, Grounds (sometimes cable & internet) included in Maintenance Fees
- Rental Value approximately ~$2,000
- Total monthly carrying cost: $3,781
- Negative $1,781 month
- you may adjust +$300 to 500 additional income depending on financing and rental value
- Numbers will be similar for a 1 bedroom also with average rental value at $1,300
Today’s savvy Miami Beach Investors
pay cash or at least 40 to 50% down for the numbers to make sense when renting is required. Primary end users buy Miami Beach real estate
because they love the location
and see future appreciation potential (as do investors). My calculations also show us at the bottom of the market (specific to Miami Beach oceanfront communities
) as inventory slowly decreases while closed sales increase. Be sure to see the new Blog posting coming this week and reflecting 1 Quarter Stats 2008. I continually add to this Miami Beach real estate blog
so if you’d like new updates once available, you can be notified by email
(automatic) or by RSS feed (see upper right column) each time a new posting occurs.