Dakota is looking for a partner to purchase this turnkey, proven airbnb in Miami that is currently an active listing of Dakota’s. Dakota knows the property intimately and given the seller’s situation, the property can be purchased a favorable basis. With tremendous potential, the strategy is simple: Dakota will operate this property for 12 to 24 months while the re-sell market in South Florida takes shape again and this property can sell for closer to appraised value. The home has remained on the market given current macro-economic dynamics, general investor buyer hesitancy on STR at the moment, and the timing of the listing in Nov. ‘23 (now it is stale).

Address and Map: 1570 SW 3rd St., Miami, FL 33135

Additional Pictures: Current Zillow Listing

Proposal

• Investor to purchase home (Cash or DSCR Loan) with Dakota as representing buyer side transaction agent
• Dakota to manage the property for 12-18 months for 15% management fee per booking (Dakota has already been managing the property on behalf of the seller)
  • A new listing will be needed which will take some time to get reviews.
• Investor to sell after 12-24 months utilizing Dakota as the listing agent at 2.5% listing fee (1.5% buyer agent fee)

Expected Returns

Initial Purchase

• Purchase price 2024 = $650,000
  • 25% Down through a DSCR Loan (Kiavi, Easy Street Capital) = $162,500
  • Closing Costs = $5,000
• Initial Rehab & Furnishings = $15,000
  • Fence on westside to be added = $6,000
  • Remove Hottub = $1,000
  • Some replacement furniture = $6,000
  • Other small items = $2,000
• Initial All-in = $182,500

Hold & Re-sell

• Expected Cash Flow over 12-18 months = $1,000/mo
  • Assuming ~$7k all-in monthly cost & $8k month on average in bookings
  • See below for 2023 actual bookings of $95k (of which several months were neglected)
• Sale Price (12-18 months) = $765,000 (Minus $40k selling costs) = $725,000
• Exit
  • $12k cash flow (after loan obligations & opex)
  • $75k sale proceeds
  • 47% return ($269,500 / $182,500) in 1 year

Selling Points

• Dakota is local in Miami and is already actively managing this home on behalf of the seller
• The seller is a friend and is needs to get $650k (purchased in 2022 for $630k and $40k of renovations were added)