In any real estate investment, investment, cash flow is gold. The Miami real estate market offers diverse opportunities to real estate investors, allowing you to choose which rental markets you want to cater to and profit from. Good cash flow from Miami investment properties means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.
Therefore, finding the best investment property in Miami in a growing neighborhood would be key to your success. As with any real estate purchase, act wisely. Evaluate the specifics of the Miami real estate market at the time you intend to purchase. When looking for the best real estate investments in Miami, you should focus on neighborhoods with relatively high population density and employment growth. Both of them translate into high demand for housing.
There are 47 neighborhoods in Miami. Popular neighborhoods in Miami include Brickell, Kendall, Aventura, Downtown Miami, Little Haiti, Mid Beach, Edgewater, Downtown, Coconut Grove, Brickell, Wynwood, Miami Springs, Miami Lakes, South Point, Miami Shores, Hialeah, El Portal, Santa Clara, South Beach. According to Realtor.com, Southwest Coconut Grove has a median listing price of $1.5M, making it the most expensive neighborhood. Model City is the most affordable neighborhood, with a median listing price of $280K. The median rent is around $1,950.
Here are some of the best neighborhoods within the Miami Beach area where you can buy investment properties.
Brickell is one of the hottest affordable areas in Miami. It is located on the Miami South Channel, thus it is on the waterfront. Yet the average home here sells for around four hundred thousand dollars. This is a relative bargain compared to incredibly expensive neighborhoods like Coconut grove located a few miles to the south. Brickell is located south of downtown Miami, putting it in easy reach of that massive job market.
This is a densely built-up area, so you pay around 480 dollars per square foot. This is somewhat higher than the Miami average. On the other hand, the median rent is 2600 dollars a month, somewhat higher than the 2450 average for the Miami-Dade area. Brickell Key charges roughly 2600 dollars a month, too.
Liberty City is a few blocks from Biscayne Bay. Highway 195 forms its southern border, while Highway 95 is its eastern border. Being so close to major highways is part of the reason why the average home here costs a quarter-million dollars. The relatively cheap south Florida real estate explains why this is a warm housing market despite the chill caused by the coronavirus. Home prices here have appreciated almost ten percent year over year, and they’re expected to remain unchanged through 2021.
Overtown is another neighborhood close to that’s not quite on the water’s edge. It is bisected by Highway 395 and I-95. This neighborhood is popular with medical professionals because it is dominated by the Miami-Dade College Medical campus and several hospitals. The average home here costs around a quarter-million dollars. Before the coronavirus crisis, property values had appreciated a healthy five percent year over year. Projected home values are unchanged for 2021. Residents are attracted to the affordable property, though property owners may appreciate the many people moving here due to the 1,650 dollar a month rent.
Here are the ten neighborhoods in Miami having the highest real estate appreciation rates since 2000—List by Neigborhoodscout.com.