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Where Do You Find the Best Miami Residential Income Properties for Sale?

by Hamza Abdul-SamadDec 15, 2017July 25, 2023

Many real estate markets have had significant success in 2017, and Miami’s market was one of them. The Magic City’s rental market success is expected to pour over into the following year. Therefore, real estate investors would be wise to consider finding Miami residential income properties for sale for lucrative real estate profits.

Miami Real Estate Investing – The Numbers

Here’s how Miami is performing, according to Mashvisor’s real estate market analysis data:

Median Property Price: $396,001
Traditional Rental Income: $2,648
Traditional Cash on Cash Return: 3.88%
Traditional Cap Rate: 3.88%
Airbnb Rental Income: $2,648
Airbnb Cash on Cash Return: 4.1%
Airbnb Cap Rate: 4.1%

One of Miami’s unique real estate investing features is shown in the data. The city is an excellent investment choice for traditional and Airbnb rental properties. You can’t go wrong with either rental strategy!

While Miami residential income properties for sale are suitable for both Airbnb and traditional rental strategies, some areas of the city favor one strategy over the other. Let’s take a look at different Miami real estate neighborhoods and their optimal rental strategy.

Best Areas for Miami Residential Income Properties for Sale – Airbnb Rentals

Miami is a beacon of entertainment, tourism, and culture. It should therefore come as no surprise that Airbnb rentals are common among tourists visiting the city. Miami is a bucket-list city for Americans and foreigners, as it is the only US city to have 45% of visitors come from abroad.

Although Airbnb investment properties have served well for both guests and real estate investors, there are certain requirements Airbnb hosts need to abide by. The Miami-Dade County charges a 6% tourist tax on Airbnb investors. Other requirements, like licensing, are also necessary. No matter the requirement, however, Airbnb investing in Miami pays off greatly in the end.

Here are the best areas for Airbnb Miami residential income properties for sale:

Coral Way

Median Property Price: $480,000
Airbnb Rental Income: $3,065
Airbnb Cash on Cash Return: 3.43%
Airbnb Cap Rate: 3.43%
Airbnb Occupancy Rate: 51%

Coral Way’s average Airbnb rental income is the highest in Miami, which also happens to be very high compared to the average US neighborhood. Real estate investors could generate more than this average rental income, especially if they manage to have higher than the average Airbnb occupancy rates of 51%.

Shenandoah

Median Property Price: $625,000
Airbnb Rental Income: $2,875
Airbnb Cash on Cash Return: 3.39%
Airbnb Cap Rate: 3.39%
Airbnb Occupancy Rate: 50%

Shenandoah is another top location for Miami real estate investments. Its rental income is relatively lower than Coral Way’s, but its cap rate, cash on cash return, and occupancy rate are similar.

Best Areas for Miami Residential Income Properties for Sale – Traditional Rentals

While Miami real estate has thrived with Airbnb, its true calling card seems to be traditional real estate investing. Miami is one of the busiest cities in America, and one of the more business-friendly ones too. Miami’s economy is growing, as are its investment property prices. The time to buy in Miami is now, especially before prices rise. Here are the best areas for traditional Miami residential income properties for sale:

Douglas Park

Median Property Price: $334,000
Traditional Rental Income: $3,110
Traditional Cash on Cash Return: 4.08%
Traditional Cap Rate: 4.08%

The thought of earning more than $3,000 in monthly rental income makes some real estate investors salivate. Luckily for investors, Douglas Park isn’t the only neighborhood with such traditional rental income. All of these top places for traditional Miami real estate investing generate around $3,000 in rental income.

Upper Eastside

Median Property Price: $440,500
Traditional Rental Income: $3,401
Traditional Cash on Cash Return: 3.04%
Traditional Cap Rate: 3.04%

Upper Eastside follows the trend of the best Miami neighborhoods for traditional real estate investing: it has a rental income of over $3,000, and it has high ROI in terms of cash on cash return and cap rate. The projected cap rate and CoC return are the same because Mashvisor’s real estate market analysis assumes properties are paid for fully in cash. When an investment property is paid for with a mortgage, as is normally the case, the cash on cash return of a property is typically higher.

Wynwood-Edgewater

Median Property Price: $538,450
Traditional Rental Income: $2,968
Traditional Cash on Cash Return: 1.98%
Traditional Cap Rate: 1.98%

This neighborhood’s median property price scales towards the more expensive side of things. Still, finding Miami residential income properties for sale on great deals in Wynwood-Edgewater would ensure a profitable and safe real estate investment.

Biscayne Island

Median Property Price: $799,000
Traditional Rental Income: $5,679
Traditional Cash on Cash Return: 4.16%
Traditional Cap Rate: 4.16%

Biscayne Island has the highest median purchase price on this list, but for good reason. It also has the highest projected rental income on the list of over $5.5k.

Best Areas for Miami Residential Income Properties for Sale – Traditional Rentals and Airbnb Rentals

Miami is an excellent city for traditional and Airbnb rental strategies, as mentioned earlier. In these areas, Miami residential income properties for sale could be used as either rental strategy and be just as profitable.

Brickell

Median Property Price: $534,900
Traditional Rental Income: $2,978
Traditional Cash on Cash Return: 1.84%
Traditional Cap Rate: 1.84%
Airbnb Rental Income: $2,918
Airbnb Cash on Cash Return: 2.06%
Airbnb Cap Rate: 2.06%
Airbnb Occupancy Rate: 53%

Brickell is as close as it gets with Airbnb and traditional real estate investments in Miami. It could be tough to choose which rental strategy to opt for, especially since both are virtually equally as good.

Downtown Miami

Median Property Price: $343,000
Traditional Rental Income: $2,601
Traditional Cash on Cash Return: 3.11%
Traditional Cap Rate: 3.11%
Airbnb Rental Income: $2,476
Airbnb Cash on Cash Return: 2.5%
Airbnb Cap Rate: 2.5%
Airbnb Occupancy Rate: 48%

Downtown Miami has a very attractive feature to real estate investors: low investment property prices. Its rental income and ROI are also of high quantity and quality. As great as Downtown Miami is for real estate investment properties, one area seems to one-up it.

North Bayfront

Median Property Price: $273,500
Traditional Rental Income: $3,040
Traditional Cash on Cash Return: 7.4%
Traditional Cap Rate: 7.4%
Airbnb Rental Income: $2,577
Airbnb Cash on Cash Return: 5.77%
Airbnb Cap Rate: 5.77%
Airbnb Occupancy Rate: 49%

North Bayfront may be the best neighborhod on this list. It has the lowest median property price in Miami, and is still below the national average. Its rental income for Airbnb and traditional investments is high, and it has the highest ROI of any of the neighborhoods in Miami. If a real estate investor finds a great deal in North Bayfront, he/she has likely struck gold.

Miami residential income properties for sale are among the best in the State of Florida and in the US as a whole. To find Miami residential income properties for sale in no time, start an investment property analysis and search with Mashvisor!

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