Investing in Miami, FL — Market Analysis
Miami's condo investor market requires careful HOA screening for STR eligibility; single-family in Homestead and Miami Lakes offers better cash-flow math than urban condo plays. With a median home price of $625,000, acquiring a rental property in Miami requires a minimum $125,000 down payment for a DSCR loan (20% of purchase price) or $156,000 for a conventional investment property loan (25%). At current DSCR investor rates around 7.5%, your estimated monthly payment on a $500,000 DSCR loan is approximately $3,496 in principal and interest, with a total PITIA (including taxes and insurance) of approximately $4,798/month.
For a long-term rental strategy, Miami properties at the median price point generate an estimated $4,200/month in gross rent — a gross rent multiplier of approximately 12.4x. After accounting for all operating expenses including vacancy, property management, maintenance, capital reserves, taxes, and insurance (typically 35% of gross), estimated net operating income runs around $2,730/month. This produces an estimated cap rate of 5.2% and an estimated monthly cash flow of $-770 after P&I on a DSCR loan. The estimated LTR DSCR ratio of 0.88x falls below the 1.0 minimum most lenders require. Investors typically compensate with a larger down payment (to reduce PITIA) or by targeting lower-priced sub-market properties with stronger rent-to-value ratios.
Short-term rental is an active strategy in Miami. Based on typical occupancy and nightly rates for this market, a well-managed STR property could generate approximately $5,200/month in gross revenue. This produces an estimated STR DSCR ratio of 1.08x — meeting the 1.0 DSCR threshold most lenders require, though some lenders price better at 1.25+. Note: DSCR lenders that accept STR income typically require 12-24 months of AirDNA or VRBO data, or a signed lease agreement from a property management company projecting annual revenue. Estimates above are for illustration only — actual performance depends on property location, amenities, and management quality.
Miami-Dade County uses the standard conforming limit of $832,750. Most DSCR investor loans in Miami at current prices fall at or below this threshold, qualifying for standard investor DSCR pricing. Properties above $832,750 require jumbo DSCR or portfolio financing, which Tayton Capital also offers.
Tayton Capital finances investment properties in Miami across all major product types — DSCR, conventional investor, jumbo, and portfolio — with no limit on the number of properties financed. We close investment transactions remotely, including LLC vesting and title coordination.