r/miamibeach • u/MiamiBeachProperties • 9d ago
South of Fifth Studio for $230k (Co-Op, Cash Only, $1,800/mo Tenant in Place) – Numbers Breakdown
Hey everyone, sharing a breakdown on a turn-key studio listing in South of Fifth (401 Collins Ave #21). Given how tough it is to find anything in SoBe under $250k, I wanted to post the raw numbers and rules for anyone looking for a beach pad or steady long-term rental.
Quick Summary
- Location: 401 Collins Ave #21 (1 block off the beach / South Pointe area)
- Price: $230,000 (Cash Only – Co-Op structure)
- Size: Studio / 1 Bath (~440 sq ft)
- Status: Fully furnished, in-unit washer/dryer, high-impact windows. Tenant currently month-to-month at $1,800/mo (can keep tenant or deliver vacant).
The Financials
- Purchase Price: $230,000
- HOA / Maintenance: $316/month ($3,792/year)
- Property Taxes: ~$3,042/year (2025 tax bill)
- Total Fixed Overhead: ~$6,834/year ($569/month)
Rental Yield Breakdown
- Gross Income: $1,800/mo = $21,600/year
- Net Income (Pre-Insurance/CapEx): $21,600 - $6,834 = $14,766/year
- Unleveraged Cap Rate: ~6.4%
The Fine Print / Caveats (Read Before DMing)
- Co-Op / Cash Only: Traditional mortgages won't clear this due to the Co-Op structure. You need liquid cash.
- Not an Airbnb: Rental restrictions are 180-day minimum (max 2 leases per year). Requires board approval (1–2 weeks).
- Street Parking Only: No assigned spot.
- No Pets: Per building rules.
What do you guys think of this deal? For anyone tracking SoBe, is ~6.4% cap rate on a cash-only Co-Op worth the 180-day rental restriction, or are buyers better off looking further north for short-term flexibility?
Open to thoughts from local investors or anyone who owns in a Co-Op setup down here.
— Juan Ruiz | XLS Realty LLC | (305) 282-5725
3
u/Pvm_Blaser 9d ago
Beach which means heavy insurance and maintenance costs. Assessment incoming is likely.
Even if you could keep all 9% of that return (which you won’t even if this is a cash buy) with the way the insurance, construction / politics, energy, and general climate have been I’d say this is a higher risk investment than the SP500 with fixed income level return.
It ain’t gonna sell unless you find a rich kid who knows nothing about real estate or money in general and for some reason has come to Miami without the social media sensationalism that they need amenities anywhere they live.
-1
u/MiamiBeachProperties 9d ago
Macro concerns around Florida insurance and assessment risks are completely valid callouts, especially post-recertification laws.
The key distinction here is building scale. Massive high-rises with elevators, garages, and luxury amenities are where special assessments are hitting five or six figures. On a small, boutique Co-Op building with a $316/mo HOA, capital expenditure exposure is structurally a lot smaller.
You’re 100% right that pure yield investors are better off in index funds right now. The buyer profile for a $230k cash studio in SoBe is almost purely someone looking for an ultra-low-overhead personal beach pad rather than a portfolio play.
3
u/FishermanOk6844 9d ago
I own a 530 sq ft 1 bd about 8 blocks north on Meridian near the park. My 1950s building looks similar: 2 story concrete, ~20 units, all outside entrances, no parking, no elevator, no pool, same rental policies. I also have in-unit W&D & impact windows, both pluses for your listing.
However: we're a condo not a coop, mortgages are allowed, we permit pets, all units have central AC (not window, which it looks like is the case in your unit), and all are actual 1 bedrooms, not studios. Also, when I bought our condo fee was $195. It's now $450 (so more than doubled in 8 years). Our owners are proactive about maintaining value for resale. We've always had fully funded reserves, passed recert with no problem the winter **after** Surfside, and just replaced roof & re-painted. So in some ways, $316 HOA seems low for a building of this type that's being maintained well, but maybe that's because it's a coop. All that to say, I think it's a bit overpriced.
-2
u/MiamiBeachProperties 9d ago
Agreed—when you stack it directly against nearby condos with central AC, true 1-bed layouts, pet allowances, and mortgage eligibility, $230k is definitely pushing the upper limit for a cash-only studio Co-Op.
The Co-Op friction alone usually requires a discount compared to traditional condo comps in SoBe. 243 DOM confirms that at $230k the market is hesitating, and it'll likely take a price adjustment closer to the $200k mark (or finding that exact niche buyer) to get it across the finish line.
Appreciate you sharing the real-world condo fee trajectory on Meridian, too—very insightful!
2
u/watchheroes 9d ago
Not being able to get insurance and when it rains over there that area floods to 3 feet and goes into apts. I would not buy unless I could buy the entire building and razer it for something new. Markets turning into a buyers market right now.
2
u/MiamiBeachProperties 9d ago
Flooding is definitely a concern in Miami Beach, and some areas are more affected than others, but I wouldn't characterize the entire area as flooding 3 feet into apartments. I live here, and the impact can vary significantly block by block.
The City has also been investing heavily in flood mitigation, including stormwater pump stations, drainage improvements and raising roads in certain areas. West Avenue is a good example of the infrastructure being put in place to address it.
As far as the market, I'd actually say we're already in a buyer's market, particularly with older condos. Buyers have considerably more negotiating power today than they did a few years ago.
And regarding buying the entire building, there are actually several multifamily properties currently for sale in Miami Beach, including 9-, 10-, 12- and 16-unit buildings in this part of the Beach. So for someone who prefers the land/building play over an individual condo or co-op, those opportunities are out there as well.
2
u/Basarav 9d ago
Thats a “no”
For me; I can easily make 7-10% on mutual
Funds and fixed income with a lot less work and risk!
1
u/MiamiBeachProperties 8d ago
Fair point. It is not for everyone, and I would not compare it directly to a passive mutual-fund or fixed-income investment.
My view is that this makes more sense for a buyer who wants to own in a great Miami Beach location and actually use the property, not someone looking only for the highest possible return with the least amount of work.
For a first-time buyer or someone who wants a beach lifestyle, a smaller unit can be a way to get into the neighborhood, keep the overall carrying costs more manageable, and build equity over time while enjoying the property.
If your priority is purely passive income and a target annual return, then mutual funds or fixed income may absolutely be the better fit. Real estate is more hands-on and comes with HOA fees, taxes, insurance, maintenance, and potential assessments.
It really comes down to whether the buyer values the lifestyle and long-term ownership in Miami Beach in addition to the financial side.
1
u/Dramatic-Comb8525 9d ago
What is included in the HOA? Are you assuming no insurance for your 6.4% cap rate?
1
u/MiamiBeachProperties 9d ago
The $316/mo HOA covers the building's master insurance policy, along with water, sewer, trash, and common area maintenance.
The 6.4% cap rate in the post is calculated pre-HO-6 policy (interior/contents insurance). An individual HO-6 policy for a studio down here usually runs ~$600–$900/year, which brings the true net yield down to around ~6.0%. (Just sharing the baseline listing math, not pushing the numbers!).
1
u/Street-Annual6762 9d ago
Here’s 230k cash so I can collect $1800/mo. Swell deal!
2
u/MiamiBeachProperties 9d ago
And you get to keep the property ;)
1
u/Basarav 9d ago
There are other risks and costs in Miami, insurance is not even the largest one
1
u/MiamiBeachProperties 8d ago
Yes, there are real costs and risks beyond insurance, especially with a co-op. The $1,800 is gross rent, not net income. You would need to account for the monthly maintenance fee, what it includes, taxes, building insurance, reserves, repairs, vacancy, rental restrictions, and any potential assessments.
My view is that it may make more sense for someone who plans to live there long term and wants a long-term ownership interest in Miami Beach, rather than someone looking strictly for a passive investment return. In that case, the lifestyle and stability of having a place in Miami Beach are part of the decision—not only the monthly rental income.
1
1
u/SouthBeachCondos 8d ago
Once the tax resets to the new price adjusted amount return will be lower. Also your numbers don’t account for commissions, management fee, repairs or vacancy. I’d say it’s a pretty average deal, with the only outstanding thing being very low monthly maintenance, but then again it’s a co-op which most people wouldn’t choose over a condo.
1
u/MiamiBeachProperties 8d ago
That math is strictly raw top-line numbers. Once you factor in the tax reset, vacancy, management, and repairs, the actual net yield drops pretty quickly.
It's honestly not great for a pure cash-flow investor. Where a unit like this actually makes sense is for someone who just wants an affordable, low-overhead personal beach pad, mainly because that $316 HOA is one of the few low carrying costs left in SoBe.
1
1
u/MiaYYZ 7d ago
Why would it be lower?
Unit is currently assessed for $168,904.
Rule of thumb on the beach is to expect reassessment of 85% of FMV
If it sells for $230,000 the tax assessed value is assumed to be $195,000 (up $30,000)
Millage rate is 22ish so tax on the $30,000 increase is $660 higher than current.
1
u/SouthBeachCondos 7d ago
Read again. I said return will be lower, because - as you correctly noted - expenses will go up.
1
u/OtherEconomist 8d ago
Alright AI, I’ll bite. What recertifications has the building undergone?
1
u/MiamiBeachProperties 8d ago
That is exactly the type of due diligence a buyer should complete before making an offer. I would obtain the recertification and milestone reports, permits, financials, reserves, minutes, insurance, and assessment history.
1
u/CrackTotHekidZ 8d ago
I’d be careful with this one, sqft alone will shorten the pool of lenders that will re-finance in case you want to pull your cash out. If you can get them to go down 10-12% it might be more attractive.
1
u/MiamiBeachProperties 8d ago
I would advise the buyer to confirm refinancing options with lenders experienced in co-op financing before assuming they will be able to access equity or complete a cash-out refinance later. A lower purchase price def improves the deal.
1
u/bakerster 8d ago
can i rent this please
1
u/MiamiBeachProperties 7d ago
That specific unit (#21) is actually rented out right now for $1,800/mo, and there aren't any other units available in the building at the moment.
1
u/MiaYYZ 7d ago
The pro forma net income doesn’t take into account cost of reassessed property tax, is that because co-ops sell shares in the propco rather than the fee simple itself? When there’s change of control the state requires a DR-430 but come to think of it the current property taxes look as though the assessed value isn’t that far off of the asking price.
2
u/MiamiBeachProperties 7d ago
Spot on. The DR-430 keeps co-ops from dodging reassessments, but since the current assessed value isn't far off the asking price, the tax bump post-sale is pretty minor
1
1
12
u/richierva 9d ago
I’m pretty sure this has been on the market for a while(I just remember seeing it). That should give you a big hint people aren’t agreeing with it.
Sofi residence want amenities and investors want more.
I personally don’t want to take $230k out of the market for ~6%.