Purchasing an investment property in Miami is an unequaled opportunity to create passive income and equity that will continue to grow over time. The market itself is primed for rental property investing. On top of that, you can essentially capture, bottle, and sell the feeling of being in a placid paradise with these rental properties, which is a rare commodity that offers financial stability and security in a way that is only matched by real estate investing. Because as long as humans are knocking about, this feeling will always be in high demand.
By leveraging the best DSCR loans with one of the best mortgage lenders like mbanc and using short-term rental data intelligence powered by STR Verifi to forecast and measure rental revenue, your rental ROI will be as abundant as Miami’s beachside vibes, and your life will feel like a perfect day spent reclining by the pool. Witness this tool in action:
An Investment Property in Miami: About the Property
To understand the true value of STR Verifi, let’s examine this 4-bedroom, 3-bathroom investment property in Miami.
Constructed in 1961, this property has witnessed Miami change and blossom into a vibrant metropolis, which it is waiting to witness for self-made entrepreneurs like yourself. But don’t get it twisted: This is still a modern property.
It is evident this property was recently renovated with an assiduous eye for detail as soon as you pass the circular driveway, enter the beautiful double-door foyer entrance, and see the wood-style tile floors, plantation shutters, full impact windows and doors, huge open dining and living room spaces, and eat-in kitchen.
This house is perfectly positioned on a spacious corner lot and has a laundry room, central heating and air conditioning, two attached garage spaces, and an instant water heater. Still, what would Miami be without fun?
Other features that make this an excellent investment property in Miami include a chic custom bar, a free-form pool with a covered poolside patio, an artificial turf play area, landscape lighting, and a built-in wine cooler.
In addition, this property is mere blocks away from the University of Miami, which makes this market area an ideal property for college students or faculty with a need to be close to the college. MBANC closed this property in 2021 for $950,000. Today the property is valued at over $1,500,000, a 58% increase in equity.
Without further ado, let’s get into the investment property ROI analysis.
STR Verifi in Action: An Investment Property in Miami
With a 30-year interest-only jumbo, the monthly mortgage payment for this investment property in Miami will be $3,162 monthly ($37,944 annually) including taxes and insurance.
This monthly payment may seem steep, but with the rental revenue this property generates, it is a lucrative and genius investment. Let’s explore how rental intelligence powered by STR Verifi provides unequaled insights into earning potential.
This property’s short-term rental market has a B grade, with consistent scores in rental demand (70) and seasonality (77). These scores indicate that there will be no shortage of renters, and business will be as consistent as the warm Florida climate.
With an average daily rate of $430, tenants are only needed for 14 days monthly to cover the mortgage. Furthermore, the average occupancy rate of 67% means you can expect to have renters for 21 days per month.
Short-term rental earnings total $9,030 monthly ($108,360 annually) from this investment property in Miami, making the $3,162 monthly (and $37,944 annually) interest-only jumbo mortgage payment look diminutive and downright puny in comparison. As a short-term rental, annual passive income equates to $70,416 annually.
Sounds great, but can this property earn more? This subject market indicates potential short-term rental income, but what about investors looking for a long-term rental solution?
STR Verifi also supports projected long-term rental property analysis. Long-term and short-term rental metrics empower the user to identify optimal rental revenue for any property. Let’s take a closer look, shall we?
Long Term rental earnings for this investment property in Miami total $10,146 monthly ($121,752 annually). Annual gross income from long-term rent totals $83,808. By leveraging this property as a long-term rental, the homeowner is generating $13,392 annually more in comparison to leveraging it as a short-term rental. And nothing hurts more than leaving money on the table.
Cutting-edge short-term rental intelligence, like STR Verifi, empowers the homeowner to make a data-driven decision and identify adequate rental solutions to increase earnings potential and mitigate risk.
Pair all that with the exceptional equity gain year over year, and this property is without question, a cashflow-spinning investment.
Learn More About STR Verifi and Passive Income From an Investment Property in Miami
Miami was built on the ambitions of people who recognized it as a gateway to the American Dream. The American Dream means creating the life you want, which investing in an investment property in Miami enables you to do. When paired with an STR Verifi rental calculator, you can forecast rental revenue and turn investments from a gamble into a sure thing. To learn more about STR Verifi and to work with one of the best mortgage lenders that offers the best DSCR loans, talk to our team.