Multi-Family Homes in Miami
The Investment Value of Multi-Family Homes in Miami
We are often asked about multi-family investment opportunities in Miami and we noticed there is a lack of information about these residences on the internet.
Multi-family homes are the least common type of residential buildings. Most people look for single-family homes, condos or townhomes. Multi-family homes are essentially a home that has been turned into two or more units (duplex, triplex or fourplex). They can be rowhouse-style or have multiple floors. Everything more than 4 units is considered commercial. Some multi-family homes have a separate entrance for each unit, while some share a main entrance. The difference between a multi-family with a condo or townhome is that the units cannot be purchased individually, with other words the entire building is owned by one owner.
Multi-family homes are well fit for those looking for a Miami investment. They are often lower priced than single family homes or townhomes and you have the option to live in one part of the duplex while you rent the other part out. Because of scarcity and the great investment potential, the market for multi-family homes is one that is very much desired with investors.
This duplex on 5190 Donatello St in Coral Gables was sold for $775,000. The two 3-bedroom units are each rented for $2,300. That is $4,600 in total on a $775K investment. That is a gross 7% return on investments.
This duplex property on Ponce de Leon Blvd was bought in 2014 for $703K (Listed for $798K) and one of the units was just rented for $2,800 per month. If the other unit rents for the same price that will be a $67,200 yearly income or 9.5% of yearly gross income
Currently listed: Amazing investment opportunity in the heart of the Gables (43 Sidonia Ave). The fourplex offers 1 bedrooms with a den. All 4 units are updated and rented at an average of $1500. The current owner states he has $60k in Net Income and $10k in total expenses. That is a 5%-6% cap rate approx.