When a distressed property owner approached Park Place Properties, they feared their Miami condo investment was a mistake. The unit was underperforming, outdated, and far from reaching its income potential. They needed help turning things around—and fast.
That’s where we came in. Through strategic renovations, market analysis, and expert management, we transformed their lackluster property into a vibrant, high-performing short-term rental. The results? We achieved $32,767 in profits, a 85% total ROI, and an annual cash-on-cash return growing to 10% by 2024.
When we first walked through the property, it was hard to ignore the issues:
Swampy and Sad Interiors:
The unit felt boring and gloomy. The walls were painted in dull colors, the lighting was poor, and the furniture was outdated. The layout made the space feel underutilised and uninviting. It lacked personality and didn’t appeal to modern renters.
Low Functionality:
The kitchen and bathroom were small and poorly designed, offering little storage or convenience. The layout didn’t maximize the available space, sleeping only 6 guests, making the apartment feel smaller than it was.
Low Earning Potential:
The property was generating far less income than similar units in the area. A market analysis showed that it had the potential to perform much better if updated to meet modern standards and trends.
Park Place Properties set out to transform the apartment with a plan that combined financial analysis and smart design choices.
Revenue Analysis:
We studied the rental market in Miami, comparing this unit’s income to similar properties in the area. The analysis showed that renters were willing to pay more for apartments with modern finishes, open layouts, and functional spaces.
Decision to Renovate:
Based on the numbers, we decided to do a complete renovation. The goal was to create a space that was not only beautiful but also highly functional, family-friendly, and desirable to renters.
The renovation was led by our talented team, Nakul and Jessie, who oversaw the project from start to finish. They focused on every detail to ensure the property would be modern, fun, and functional.
Design Research:
Nakul and Jessie analyzed local Miami trends, drawing inspiration from high-performing properties in the area. They also considered the needs of guests, prioritizing features like modern finishes, family-friendly amenities, and creative touches to appeal to a broad audience.
Interior Overhaul:
Open Layout: The kitchen and living room were opened up to create a larger, brighter space that feels modern and inviting.
Modern Finishes: The apartment was refreshed with new flooring, sleek fixtures, and a lighter color palette to make the space feel bigger and brighter.
Practical Additions: Built-in storage and shelving were added to maximize the space’s functionality.
Kitchen and Bathroom Upgrades:
The kitchen was completely reimagined with new cabinets, countertops, and energy-efficient appliances.
The bathroom received new tiles, a modern vanity, and updated lighting, giving it a spa-like feel.
4. Unique Features and Family-Friendly Touches:
To set this property apart, we added themed rooms and fun, unique amenities. These include:
An arcade area and PS5 for entertainment.
A hammock for relaxation, perfect for the Miami vibe.
Family-friendly features such as a baby crib, children’s cutlery, and thoughtful design elements catering to larger groups.
Creative photography, including playful setups like Deadpool props, adds personality and charm to the listing, making it eye-catching for potential guests online.
Investment Performance Summary:
This case study demonstrates the exceptional performance of our property investment and management strategy. Starting with an initial cash investment of $256,242.16, we transformed a $600,000.00 property into a profitable short-term rental asset now valued at $900,000.00 after an appraisal.
Key Performance Metrics
The property showed remarkable year-over-year improvement in profitability:
From an initial adjustment period in 2021 ($2,837.09), we achieved consistent profit growth
By 2023, we reached an impressive $27,474.89 in annual profit
Cumulative profits over four years totaled $32,767.68
Cash-on-cash return grew from 1.12% to 10.7% by 2023
Achieved a stable cap rate of 9.11%
Total ROI including appreciation reached 85.92%
Strategic Insights
Our success can be attributed to several key factors:
Effective Market Positioning: The property's appreciation from $600,000 to $900,000 demonstrates our ability to identify undervalued assets with strong growth potential.
Risk Management: Despite initial low returns in 2021, our strategic planning and market understanding led to rapid stabilization and exceptional growth in subsequent years.
Investment Impact
Total cash flow return: 12.79% over four years
Equity appreciation: $300,000
Combined ROI: 85.92% including both cash flow and appreciation
Through strategic design, thoughtful renovations, and a focus on market demand, this Miami property was transformed from a lackluster space into a high-performing rental unit. The changes not only maximized its earning potential but also significantly increased its overall value, resulting in a projected appreciation of $300,000.
These results showcase our ability to identify, optimize, and manage profitable short-term rental properties while delivering substantial returns for our investors. The consistent year-over-year improvement in all key metrics demonstrates the sustainability and scalability of our investment strategy. Whether it’s for short-term rentals or long-term value growth, we ensure our clients achieve their goals and stand out in competitive markets.
1. Cash-on-Cash Return
Cash-on-Cash Return (CoC) is generally calculated as:
Cash-on-Cash = Annual Net Cash Flow / Total Cash Invested × 100%
Year-by-year (using “Annual Profit After Expenses” as “Annual Net Cash Flow”):
2021
$2,837.09 / $256,242.16 ≈ 1.12%
2022
$1,900.61 / $256,242.16 ≈ 0.74%
2023
$27,474.89 / $256,242.16 ≈ 10.7%
2024
$3,392.18 / $256,242.16 ≈ 1.32%
Cumulative 4-year total
Total Net Cash Flow over 4 years = $32,767.68
Cumulative CoC = $32,767.68 / $256,242.16 ≈ 12.79%
That is the total “cash return” on our clients initial investment over four years, purely from net rental profits (not counting appreciation)
2. Cap Rate
Cap Rate is typically calculated as:
Avg Cap Rate = Average Annual NOI / Purchase Price X 100%
$54,672.85 / $600,000 * 100% = 9.11%
So, over the span of three years, on average, our client was making about 9.11% of the original purchase price in net operating income each year (ignoring the mortgage).
3. Total Return on Investment (ROI)
3.1 ROI from Cash Flow Alone
A simple measure of ROI on the rental profits (ignoring sale/appreciation) over 4 years:
ROI cash flow only = Total Net Cash Flow / Total Cash Invested × 100%
$32,767.68 / $256,242.16 ≈ 12.79%
3.2 ROI Including Appreciation/Equity
If you sold in 2024 at $900,000:
Cash out at Sale: $412,088.09 (after paying off the mortgage).
Original Cash In: $256,242.16
Equity Gain if Sold (not including cash flow):
$443,633.19 − $256,242.16 = $187,391.03
Add the 4-year Cash Flow ($32,767.68):
$187,391.03 + $32,767.68 = $220,158.71
Total ROI with Sale & Cash Flow:
$220,158.71 / $256,242.16 ≈ 85.92%
