When it comes to buying for leases, location is key. That's why some investments end up with high monthly flows and others are a bad financial idea. If you want your investment business to be successful, I invite you to continue reading this article about the best neighborhoods to invest in Miami.

Those who do not appreciate the importance of previous investigation, think that the rental business is a losing game. But really, all it takes to be successful is removing the assumptions and making an informed decision. If you want your property to be a hobby, it doesn't really matter where you buy your property. But if your goal is to create a source of passive income, do your research before you buy.

 

Why invest in Miami?

We are going to talk about the investment opportunities in Miami, so that you can choose the option with the highest profitability and the lowest risk.

Miami properties, due to their proximity to the sea, are always in high demand. Who wouldn't want to live near paradisiacal beaches? In addition, this city is on the list of the best American cities for real estate investment, and boasts a return of 18,6% year after year.

And if that doesn't convince you, it's worth mentioning that local real estate prices are affordable compared to other major US cities. In other words, it is a good "gateway city" to a foreign market.

What neighborhoods are the best if I want to invest in Miami?

We gathered some professional opinions to talk about this.

“Like many who have enjoyed their vacations in Miami, I was initially drawn to the idea of ​​buying condos in Miami Beach as an investment about two and a half years ago. However, when evaluating condo prices and rents, I quickly discovered that likely returns would be 4% or less. Instead, I chose to invest in a unique neighborhood north of Miami's "design district," called Buena Vista, filled with modest single-family homes built mostly in the 1930s and 1940s. In Buena Vista, I found and invested in homes that give me year-round renter returns of between 5,5 and 8 percent because they make 2-3 bedroom homes on small parcels affordable, especially for millennial renters, with equivalent rents to what they would pay for a studio in Miami Beach or a small one-bedroom apartment.”

Alex Cohen, Core Business Leadership Specialist

 

“33137 is one of the hottest ZIP codes in Miami, which includes Edgewater, and parts of Wynwood and Midtown. In these neighborhoods, condominiums are popular due to the ease of management. However many nearby neighborhoods like Buena Vista, Little Haiti, and Allapattah have large single-family homes, duplexes, and multi-family properties that are all the rage right now due to long-term redevelopment prospects. The North Beach neighborhood of Miami Beach is another very interesting option, as it is transitioning from a sleepy area of ​​the beach to one filled with plans for ultra-luxury projects with a revitalized downtown area.”

Sepehr Niakan, Agent for HB Roswell Realty

Based on the opinions of experts and recent statistics, we present you with a list of the best neighborhoods in Miami to invest in rental properties.

 

Coral Gables

Median rental price: $3,222 per month (April 2022)

Median Purchase Price: $734,900

According to the locals, Coral Gables is the best and most beautiful part of Miami (no wonder it's often called 'The Beautiful City'). But the numbers suggest that this neighborhood is more than just a pretty face. Although the median sales price is high compared to other Miami neighborhoods, the market value of local properties has not stopped growing in the last ten years. It is an ideal place to invest in properties.

 

Buena Vista

Median rental price: $1,120 per month

Median Purchase Price: $392,053

Although this leafy residential neighborhood contains plenty of vacant rental properties, industry insiders agree that Buena Vista is one of Miami's rental trends. Since it is located very close to downtown Miami, Little Haiti and Biscayne Bay, it is believed that this place will attract more potential tenants in the coming years. One of the biggest pros of living in Buena Vista is the affordable housing. And since the millennials are named the generation of tenants and are one of the largest generations, there are reasons to assume that the demand will increase.

Edgewater

Average rental price: $1.800 per month

Median Purchase Price: $374.000

Although the area may seem like a middle-class neighborhood with its single-family residences, we recommend taking a closer look. This place is perfect for outdoor activities, dining with friends and leading a relaxed life. In addition, property developers from around the world have begun to recognize the value of this area and appreciate its bayfront location. As the neighborhood is emerging rapidly, this year could be the best time to make your rental property investments.

 

Little Haiti

Median Rental Price: $4.188 per month (April 2022)

Median Purchase Price: $1.237.375 (April 2022)

According to the opinion of the experts, Little Haiti has what it takes to become a fashionable residential neighborhood for Miami. Although this poses certain challenges for local Little Haiti residents, it becomes a business opportunity for those who are interested in leasing. Carefully review the growth rate of Little Haiti and you will be able to leave any doubt.

 

Northeast Coconut Grove

Median rental price: $1.750 per month

Median Purchase Price: $414.000

This area of ​​Miami was famous as a mecca for hippies, but today Northeast Coconut Grove boasts themed restaurants, bars, shops, and luxury hotels. It is located near the University of Miami, and therefore hosts thousands of international students (and not all of them prefer to live on campus). If you need a prominent location, rental properties near universities are always a good idea.

 

Downtown Miami

Median rental price: $1950 per month

Median Purchase Price: $340,000

It is the center of the banking, investment and financial district of Miami. It is an area that attracts a large number of foreign consultants, who only come to spend a season and who are not willing to buy a property. Downtown Miami has a permanent demand for luxury apartments for rent by the managers of international companies based in Miami. The prices of these properties may not have a strong upward trend, but their strength lies in the stability of the area. Investment in the center will always retain its value regardless of any economic stagnation.

 

Brickell

Median rental price: $2150 per month

Median Purchase Price: $415.000

It is a dense high-rise residential neighborhood, with numerous luxury apartment towers. Successful young people in their 20s and 30s want to live in Brickell. There, wide social circles of young professionals meet and communicate. Renters pay much more for the location, not the apartments. Rental prices have remained stable in recent years. And new real estate developments are balanced by growing demand. The neighborhood is a mature and stable market with a firm foundation, perfect for long-term investment.

 

west avenue

Median rental price: $2000 per month

Average purchase price: $315.000 dollars.

West Avenue is certainly a market for big investors. At first glance, it might seem that the properties are priced high, and that it would be difficult to get a good return. Look again. Miami Beach is one of the most prestigious places for high-end culture. There is a great domestic demand from the Americans. At the same time, there is a growing demand from wealthy foreign investors looking for a safe and comfortable place for their families. It is a cosmopolitan international center. In contrast to New York and San Francisco, prices in Miami are quite affordable. Also, property taxes are significantly lower than in other parts of the United States.

 

North Miami Beach

Median rental price: $2.700 per month

Median Purchase Price: $1.319.499 (April 2022)

North Miami Beach is a very diverse residential area. It offers a wide range of properties, from affordable small houses to high-class mansions. If you search well, you can find luxurious beachfront properties for less than a million dollars. The supply of new apartments has increased considerably in recent years.

 

North Beach

Median rental price: $2.300 per month

Median Purchase Price: $486.064

Another safe bet for real estate investment is North Beach. The neighborhood is predominantly made up of luxury apartments. However, there are still abandoned and underdeveloped areas waiting for investors. The good news is that Miami Beach voters have recently approved a revitalization of the district. The project includes new housing developments and a major redevelopment of public spaces. It is a denser and more walkable neighborhood, with new restaurants and shops. You still have time to take advantage of this opportunity.

What is the first step to invest in Miami?

Miami ranks high for its rental business opportunities, and for good reason. The city boasts an excellent climate, and relatively affordable housing. In addition, it has countless options in terms of sports, culture and business. It is not surprising that people of all ages and professions come there.

Take advantage of the opportunity to invest in one of the most promising cities in the United States.

If you are actively looking for investment opportunities, schedule a consultation with Carlos Balart. Real estate agent with more than 10 years of experience in the Miami real estate market.

 

This item is a translation, with updated values.