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Investing in real estate is a great way to earn additional income without quitting your day job. Well-prepared investors can quickly build and expand their real estate portfolio, putting them on the right path to financial freedom.
Finding the perfect location to begin your real estate investment journey is essential. Right now, Miami has a great market for beginning investors to start out in, to help them maximize ROI while mitigating risk.
Before selecting your investment property in Miami, read through this guide to learn everything you need to know about the market, selecting the right property, and how to streamline the process with a great real estate agent.
Current Market Conditions
Overall in Miami, home prices are also on the rise with a high amount of inventory available. Right now, Zillow predicts by the end of 2019, Miami will see an overall 4.6% increase in home prices. Rent prices are also increasing, with a predicted 2.8% increase expected throughout 2019. Average rentals properties are currently listed at $1.6 per square footage.
This means investors will have a high selection of inventory to choose from and if you buy earlier in the year, you'll have a better chance to maximize your ROI before housing and interest rates peak.
The number of renters are continuing to increase in Miami as well, despite the less than healthy job market. From 2010 to 2017, Miami's population grew by 16%. This increase in population has led to a higher demand in housing for both buyers and renters. The unemployment rate is also below the national average, which is good news for investors, indicating that potential renters are financial able to pay rent each month.
The 5 Best Neighborhoods for Investors
Like every decision in real estate, finding the right investment property is all about location. In order to find reliable, long-term renters, you'll want to invest in a rental property near great schools, a high number of attractions, and low crime rates. Here are the top neighborhoods in Miami to look into:
Medley - Average Rent $1,275
This suburb is home to roughly 24k residents with top-notch public schools. Residents in this area can enjoy good access to nightlife and restaurants, as well as family-friendly attractions, like parks for outdoor recreation.
Ives Estate - Average Rent $1,307
This Miami-Dades county suburb has a population of 22k with good public schools. This area is home to a high number of young professionals and has a good nightlife and great number of family-friendly activities.
Coconut Grove - Average Rent $1,367
This neighborhood in Miami has a suburban feel and is home to 20k young professionals and families. Coconut Grove has good public schools, excellent nightlife, and a great selection of activities for families to enjoy.
Palmetto Bay - Average Rent $1,275
This Miami suburb is home to 24k residents and has top-notch public schools. Palmetto Bay is home to a large number of parks, has a good nightlife, and is a great location for families.
Richmond Heights - Average Rent $1,638
This Miami suburb is on the smaller side, with roughly 11k residents. This neighborhood has good schools, is home to a large number of young professionals, has good access to nightlife, and a fair number of family-friendly activities.
Where to Find Local Investment Property Listings
When looking for the best investment properties available in Miami, there are several options available. In order to find the best property, in the best location, it's best to utilize a variety of sources to find lesser advertised properties and to make sure you find opportunities before other investors.
Top Home Listing Websites
This may seem obvious, but looking for properties on the top-used home listing sites like Trulia, Zillow, Craigslist, and Loopnet is a great starting point. Not only will you get an idea of what single-family or multi-family properties are available, but you'll also get a feel for typical home prices and can track what's selling quickly in each neighborhood.
Local Listing Websites
You can search online for a variety of local listing website in Miami, which may have homes listed before other popular, national sites. Be sure to check out sites like Miami Residence, Cash Flow in Miami, and My House Deals.
While the internet is a great tool for finding listings, you can still find great properties that aren't yet listed online through other means. Some of these alternative methods include:
- Look for For Sale by Owner Signs - when homeowners or property owners opt to sell their property without an agent, they often advertise via sign before paying to be listed. Driving around neighborhoods you're interested in is a great way to find these properties.
- Search for Old For Rent Ads - when a property for rent has not moved, owners are more likely to consider selling the property. You might be able to secure a great property without competing with other investors this way.
- Word of Mouth - let others know you're looking for investment properties. Someone in your family, work or social group may know of the perfect property for you.
- Look for Abandoned Properties - Old, abandoned, boarded-up properties might not be listed for sale but are often easy to buy. If you find one in a great spot and are interested in rehabbing it, reaching out to the owner is your best bet.
Find a Great Real Estate Agent
Lastly, you can help make the best investment decisions in Miami by partnering with a top-rated agent. A real estate agent with a history in investing can help you find a great property at the best possible price.
Since real estate agents know the local Miami market well, they can offer valuable advice and recommendations, while helping you navigate through the buying process. In addition, they often have access to properties that are listed on the MLS before the hit the main listing sites, so they can help you view new properties faster.
To tour great investment properties quickly, team up with a Clever Partner Agent. Clever's agents can offer on-demand showings, which means they can get you in to view a property at any time, via locked box or supra. This can help you get in on new investment properties more quickly by allowing you to tour them before open house dates.
In addition, Clever Partner Agents offer buyers a portion of their commission in the form of a rebate. Partner Agents also offer $1k buyers rebates to help investors cover the cost of closing in many cases.
Find properties faster and save more money when purchasing by working with a Clever Partner Agent. Click here to get connected with a top-rated Partner Agent.