Some Downtown Miami Condos Make Great Investments

Right now there are some amazing investment opportunities available in Downtown Miami / Brickell. In some condo buildings, prices have fallen so low that you can buy a unit, rent it out, and have pretty good cash flow after deducting your maintenance payment and taxes. The 2 buildings that are getting the most attention right now are the Club at Brickell Bay (1200 Brickell Bay Dr) and the Vue at Brickell (1250 S Miami Ave). Prices in these buildings have fallen like a stone after the days of condo "flipping" and mortgage fraud came to an end.

I recently was looking at a 1br unit at the Club at Brickell Bay that sold for $670,000 right at the peak in 2006 that had been flipped several times. Today, that unit was listed by the bank for $110,000. Given the large number of foreclosures in these buildings, the sales taking place are all cash transactions of bank owned properties. The prices are so attractive that bidding wars are taking place on almost every bank owned property.

Just to give you an idea of how attractive the prices are, lets say you buy a 1br in the Club at $125,000. Maintenance would be $450/mo and taxes would be $208/mo. You could rent this unit for $1,200/mo leaving you with $542/mo of income. On a yearly basis, you would gross $6,504 which is a 5.2% cash on cash return. Not bad for a unit that has a huge upside potential in price.

If you are looking to find a tenant, I suggest using one of the more popular internet sites such as Rent.com, Apartments.com, or Apartment Guide.