While luxury condos and Class A multifamily properties dominate Miami’s real estate headlines, a different investment strategy is generating stronger returns for investors in the region.
Lawrence Resnick is a Realtor at The Paz Group who focuses on commercial and multifamily transactions across Miami-Dade and Broward County. He says the properties producing the best yields require the most hands-on management.
Resnick describes a clear tradeoff between property quality and yield in Miami’s investment market. Class A and luxury properties offer safety and lower operational demands, but those advantages come at the cost of returns. The assets that require more management attention and more tolerance for complexity deliver the highest cash flow.
“All the stuff that’s not pretty is all the stuff that makes money,” Resnick says. “If it’s Class A and then super luxury, then the return is much lower.”
Resnick has seen this pattern play out directly in his own transactions. Deals involving mobile home parks and portfolios of affordable, non-subsidized housing in gentrifying areas consistently generate the strongest cash flow for his clients. According to Resnick, these deals generate meaningful cash flow for investors willing to engage with the operational reality of managing them.
“The things that take a little bit of effort end up yielding the highest return,” Resnick says. “My clients do this full time, so that’s what they look for.”
Resnick identifies several submarkets in Miami-Dade and Broward County with strong fundamentals for this type of investment. Hialeah stands out for the quality and reliability of its tenant base.
“I personally am a fan of Hialeah for the lower working-class type of residents – good tenants, reliable tenants,” Resnick says. “You can get good value there, and that area is only improving with hard-working people.”
In Broward County, he points to Sistrunk and Oakland Park as areas gaining traction with investors. In Miami proper, he argues that Little Haiti, Little Havana, Little River, and Buena Vista represent some of the region’s most compelling opportunities. Properties in those neighborhoods that were deeply distressed three to four years ago now trade above $1 million, even in unlivable condition. Resnick sees this as a signal that the appreciation cycle in those areas is well underway.
Part of what makes these less glamorous asset classes work in Miami specifically, according to Resnick, is Florida’s regulatory environment for landlords. Eviction proceedings move relatively quickly, an estimated 30 to 60 days maximum. This reduces the carrying cost of tenant defaults and makes lower-income tenant bases more manageable than in states with stronger tenant protections.
Resnick draws a direct contrast with his earlier experience in Philadelphia, where he began his career 12 years ago. Many of his current clients originally invested in Pennsylvania before relocating their capital to Florida, and the landlord environment was a significant factor in that decision.
“Being a landlord over there can be very difficult,” Resnick says. “As opposed to here, I can have somebody out within 30 days, 60 days max.”
For investors evaluating mobile home parks, affordable housing portfolios, and value-add multifamily in working-class neighborhoods, this regulatory advantage widens the return gap compared with Class A assets. Lower acquisition prices, reliable tenant demand, and landlord-friendly laws combine to create returns that Resnick says are hard to match in comparable Northeast markets.
Resnick’s client base consists largely of full-time investors who manage real estate as their primary occupation, not passive allocators looking to park capital. Half live in Florida; the other half are out-of-state investors, many originally from Pennsylvania, who moved their money south.
“My typical client is an investor, and they like to buy portfolios,” Resnick says. “They’re not your typical doctor or someone with a 9-to-5 that just wants to park some money.”
As more capital flows into Florida from higher-tax, landlord-restrictive states, competition for these less visible asset classes is likely to increase. Resnick notes that Florida is gaining more than 500 new residents per day, while states like New York are losing population. In his view, this supply-and-demand dynamic supports continued price stability or modest appreciation.
Investors who have already bought in neighborhoods like Little Haiti or Hialeah may find the window to buy at current prices narrowing as the broader market catches up. Full-time operators have already recognized that in Miami, the properties requiring the most hands-on management are often the most profitable.
About the Expert: Lawrence Resnick is a Realtor at The Paz Group, focusing on commercial and multifamily transactions across Miami-Dade and Broward County. He began his real estate career in Philadelphia 12 years ago.
This article is intended for informational purposes only and does not constitute legal, financial, or investment advice. The views and opinions expressed herein reflect those of the individuals quoted and do not represent an endorsement of any company, product, or service mentioned. Readers should conduct their own due diligence and consult qualified professionals before making any investment decisions.
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