A South Miami rehab, line by line

Why we publish one deal instead of a rule of thumb

Because the rules of thumb — 70% of after-repair value, 20% margin — hide the two lines that decide the outcome: the holding cost and the time.

A renovation that returns 20% in eight months and one that returns 20% in twenty are different businesses. The percentage is the headline; the calendar is the risk.

The shape of the operation

The three things that went differently than planned

1. Permitting took longer than the work. In much of Miami-Dade the calendar is set by the municipality, not by the contractor. Build the permit timeline into the holding cost before you buy, not after the first delay.
2. The scope grew once the walls were open. It always does. The question is whether the contingency was real or decorative.
3. The finish level was decided by the street, not by taste. Renovating above what the block supports is the most common way to convert a good purchase into an average outcome.

What we would tell someone doing their first one

Three things, and none of them is about the renovation.

• Underwrite the exit, not the entry. What sold on that street in the last ninety days, at what finish level, in how many days.
• Price the calendar. Every month of holding is financing plus tax plus insurance plus utilities. Multiply by the number of months you actually expect, then add two.
• Have a rental plan. If the sale does not happen at the price you need, being able to hold and rent turns a loss into a wait. Without it, the market sets your timetable.