Short-Term Rental Yield Analysis

501 First Residences · Residence 1501

121 NE 5TH Street # 1501, Miami FL 33132 · 2 Bed / 2 Bath · 835 sq ft · Built 2025

$820,000Short-term allowed

Purchase price

$820,000

$982 / sq ft

HOA

$1,300/mo

full-service building

Property tax (est.)

$16,400/yr

est. post-sale reassessment @ 2%

Cap rate (base)

3.3%

unlevered, honest

The revenue basis

STR revenue here is measured, not projected: a comparable 2BR we manage at District 225, rental income March to August 2026 annualized (QuickBooks, excluding tax collected), two blocks away. The scenarios below bracket it.

STR revenue basis (a comparable 2BR we manage at District 225, rental income March to August 2026 annualized (QuickBooks, excluding tax collected), two blocks away)
Gross annual revenue — base case	$83,500

Annual pro-forma — base case

Professionally-managed short-term rental. Base revenue $83,500.

Gross STR revenue	$83,500
Professional STR management (20%)	−$16,700
HOA ($1,300 × 12)	−$15,600
Property tax (est., see below)	−$16,400
Insurance (condo, STR)	−$2,000
Utilities + internet	−$2,640
Supplies, turnover, reserves (~4%)	−$3,340
Net operating income (NOI)	$26,820

Unlevered cap rate = $26,820 ÷ $820,000 = 3.3%.

Cash vs financed

The same $26,820 NOI, two ways to own it.

All cash

Cash in (price + ~3% closing)$844,600

Net operating income+$26,820

Cash yield≈ 3.2%

20% down, financed

Cash in (down + closing)$188,600

NOI − debt ($656,000 @ 7.25%)−$26,881/yr

+ principal paydown yr 1+$6,141

Monthly cash flow≈ −$2,240/mo

Three revenue scenarios

Same $820,000. Only the STR revenue assumption changes (cap = NOI ÷ price).

Conservative

$74,315

cap 2.4%

★ Base

$83,500

cap 3.3%

Optimistic

$86,005

cap 3.5%

Next step

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Assumptions & disclosures

Revenue from a comparable 2BR we manage at District 225, rental income March to August 2026 annualized (QuickBooks, excluding tax collected), two blocks away. Cap rates are honest, unlevered NOI ÷ price (2.4% / 3.3% / 3.5%). 20%-down case uses a $656,000 mortgage (80% LTV, 7.25%, 30-yr); rates vary by lender.

Florida short-term-rental taxes (13% here): state sales tax + Miami-Dade surtax + county tourist and convention taxes, collected from the guest and remitted; not an owner expense above but filed on every stay.
The tax side: held as a short-term rental with stays of 7 days or less on average, a furnished unit can deduct a large part of its price in its first year. How the Miami STR tax strategy works.
Property tax is estimated — the county currently bills $10,252 on this property, a homestead-capped or land-only assessment that does not transfer to a buyer. The pro-forma uses 2.0% of price (a non-homestead sale reassesses to about market); the county's first full bill may differ. Verify with the Property Appraiser.
No appreciation assumed in the yield figures. Not tax or lending advice — verify with your CPA and lender.