Condos and co-ops in aging buildings

From South Beach through Mid-Beach and North Beach, much of the island's housing is in multifamily buildings, many of them several decades old. The 2021 collapse happened in Surfside, the town just north of Miami Beach, and the state laws that followed landed hard here: milestone inspections, structural reserve studies, and in some buildings, assessments big enough to change an owner's plans.

  • Co-ops usually need board approval of the buyer, and few lenders will finance co-op shares, which shrinks the pool of buyers. We pay cash and schedule around the board's review.
  • An assessment that has been voted but not yet paid will appear on the estoppel letter, and we can price the unit with it outstanding.
  • Many older associations limit leasing, restrict pets, or require a waiting period before a new owner can rent, which keeps some investors away.

Houses that now sit below the road

Miami Beach has spent years installing stormwater pumps and raising streets in low-lying neighborhoods to fight tidal flooding. The new roads drain better, but some older homes and ground-floor units ended up lower than the pavement, so rain can run toward the house instead of away from it.

For single-family homes, the bigger constraint is FEMA's substantial improvement rule. Once repair or renovation costs reach half the structure's market value, the house generally has to meet current flood elevation requirements, which for a low pre-war home can mean raising it or starting over. That's the point where many buyers lose interest. We make offers on these houses as they are.

Historic districts and design review

South Beach's Art Deco district is the best-known of the city's historic districts, but there are others. In designated areas, exterior changes, replacement windows, and demolition usually need historic preservation approval, and the city also reviews demolition of many older single-family homes outside those districts. The process adds months and cost to any project. We price that review into the offer, so you never have to start it.

If the plan was short-term rental income

Miami Beach prohibits short-term rentals in most of its residential neighborhoods and enforces the rule with steep fines, and many condo associations ban them outright. Owners who bought expecting nightly rental income sometimes find the numbers no longer work. Whether the unit sits empty or has a long-term tenant, we can make an offer on it.

Deed tax: a condo versus a small building

Miami-Dade's documentary stamp tax on a deed is $0.60 per $100 of the price. The extra $0.45 per $100 surtax doesn't apply to a single-family residence, and Florida law counts a condominium unit as one for this purpose. A duplex or small apartment building does pay it. By custom, the seller covers the stamps and the buyer takes care of the owner's title insurance, but your contract controls.

Frequently asked questions

Will you buy a Miami Beach condo with a special assessment?

Yes. We review the assessment, the building's inspection reports, and the association's reserves, and our offer reflects all three.

Do you buy co-op apartments on Miami Beach?

Yes. We set the closing date around the co-op board's approval process and pay cash, so financing restrictions don't apply.

My house sits below base flood elevation. Is that a problem?

No. We make offers on low-lying Miami Beach homes as they are, including ones where a major renovation would trigger the flood elevation rules.

Do you buy outside South Beach?

Yes. We buy across the city, including Mid-Beach, North Beach, Normandy Isles, and the islands on the bay side.