Real Estate Investment soon? (Miami, Pembroke Pines: real estate market, foreclosure, rental)

[CAtransplant]

Hello everybody,
Later this year, I am thinking of maybe buying a (town)house and rent it out. I know how bad the local foreclosure market is but I am hoping to buy something inexpensive and hold it for a very long time (up to 20 years).
Now, my question to all of you is, do you think Kendall is a more popular and better investment area than Pembroke Pines in Broward County? Right now, does greater Miami area have more demand for rental units or is there too much on the market already? Also, what are the most popular areas of Miami for rental property that are not too expensive like e.g. Miami Beach, Coconut Grove, etc.?
Do I need to be a FL resident in order not to be taxed that much later in property taxes? I currently live in Texas but Miami area is definitely a "hot" investment area for the long term.
Thank you.

[planetsurf]

I'll weigh in on the taxes aspect.
We owned a SFH that we rented out when we relocated to SoCal so I know what's up.

It doesn't matter where YOU live. Assuming you pay a "regular" price for the prop (not foreclosed or distressed), you will be taxed on that price (basically, there might be some slight variation based on comparable properties in the area).

If you're Homesteaded, you'll be locked in to that tax rate via Save Our Homes. SO, if the value of your property goes up 10% next year (wishful thinking) then SOHs will keep your tax low with a maximum of 3% raise per year.
WITHOUT a Homestead (& SOH) you'll be taxed at whatever they feel the proper value of your property is. Doesn't matter if it's a rental or a second home.

Hope that helps.

[CAtransplant]

Thanks for the information. Any idea on how rental market is in Kendall and/or Pembroke Pines?

[planetsurf]

One vs the other? No, sorry.
It might take some cross referencing with drive-bys, Craigslist and the rental mags.

Just beware that I don't think anyone would suggest the real estate market has bottomed yet. We might be closer (especially for more reasonably priced middle/upper middle class areas), but I don't think we're there yet.

Good luck!

[feelquiet]

Also keep in mind the cost of insurance/hoa in addition to taxes. I know very few people who can cover their total cost of ownership with rental income even at these low purchase prices, unless they're putting down 40%+. My gut tells me prices need to drop 15% more in the suburbs to get a reasonable rate of return, unless you're an all cash buyer.

Pembroke Pines used to be a great rental market while it was growing rapidly over the last 2 decades, but growth has slowed dramatically and there's an oversupply. Kendall has many existing employers and high population density, and has historically held up very well, especially east of 137th ave which is all built out. I would choose Kendall over Pembroke Pines, because of more major employers and colleges.