Financial Analysis
Understand what a Miami deal really looks like. No hype, just math.
Education Only, Not Financial Advice
Everything here is educational. Always validate numbers with your own lender, CPA, and attorney.
Market Snapshot
Median Condo Price
~$425,000
Up from $209k in 2015
Median Home Price (Sold)
$530k–$570k
Avg Rent (All Types)
~$3,100/month
Brickell 2BR Rent
$3,975–$4,600/month
Gross Yield (Price-to-Rent ~20)
~5.1%
Before expenses — tight for cash flow
Stabilized MF Cap Rates
5.1–5.3%
Class A/B around 5%
Bubble Warning
Price-to-rent above mid-2000s boom levels; ownership costs at historic highs.
Essential Math
Include
Exclude
Example
$30,000 NOI ÷ $600,000 = 5% cap rate
In Miami, 5–5.5% is typical for stabilized assets. Higher rates often hide issues.
Example
$3,000 annual cash flow ÷ $150,000 invested = 2%
In Miami, low or negative cash-on-cash is common with leverage in prime locations.
Example
$40,000 NOI ÷ $32,000 debt service = 1.25 DSCR
Lenders typically want ≥1.20–1.25 on investment properties.
Example
$51,000 total costs ÷ $60,000 rent = 85% break-even
Below this occupancy, you're feeding the property from your pocket.
Cost Structure
For a condo or small multifamily in Miami-Dade. These are ballpark ranges — your actual numbers will vary.
| Expense Category | Typical Range | Example ($600k Property) |
|---|---|---|
| Property Taxes | 0.8–1.1% of value/year | $4,800–$6,600/year |
| Homeowners Insurance | $5,000–$6,000+/year | $415–$500/month |
| HOA / Condo Fees | $600–$1,200+/month | Varies widely by building |
| Property Management (LTR) | 8–10% of rent | On $2,500 rent = $200–$250/mo |
| Property Management (STR) | 15–30% of revenue | Depends on occupancy |
| Maintenance & Reserves | 5–10% of gross rent | On $2,500 rent = $125–$250/mo |
| Vacancy & Leasing | 5–8% of gross rent | Plan for 1–2 months/year |
The Miami Reality Check
Taxes, HOA, and insurance aren't "details" — they often determine whether a deal cash-flows or bleeds. Together, they can eat 40–50% of your gross rent before mortgage payments.
Case Study
A realistic example to show how the math works. Not a recommendation.
NOI
$17,910/yr
Cap Rate
2.6%
Low but realistic for Brickell
Cash Flow After Debt
-$26,790/yr
Negative cash flow
DSCR
0.40
Below 1.20 lender comfort
What This Example Teaches
A desirable Brickell condo purchased with 20% down at today's rates is likely negative-cash-flow as a long-term rental. The deal only works if you: (1) put more cash down, (2) buy at a discount, or (3) find a low-HOA, low-insurance building. This is exactly why many Miami investors focus on appreciation, not cash flow.
Use our Deal Reality Check Calculator to analyze a specific property with realistic Miami market assumptions.
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