🏝️ Bikini Hostel Bows Out + 🏗️ Bridge Delayed (Again)

Good morning. July vanished faster than a parking spot in Brickell at 5 p.m. Between moving apartments and escaping to Türkiye for a little baklava therapy, the newsletter took a brief summer nap.

But we’re back, refreshed, caffeinated, and ready to dive into Miami real estate’s latest mix of big deals, bigger delays, and the occasional eyebrow raising redevelopment.

THE 1% RULE SNAPSHOT

🏆 Karim’s Top 3 Multifamily Picks

📍 2035 NW 34th St – Miami
💵 $790,000 | 🏠 Triplex | 💰 Est. Rent: $8,075/mo
✅ 1.02% Rule | Est. Monthly Cash Flow: $1,362
Solid rental play near Allapattah with strong income potential and room for value-add.
🔗 View listing

📍 7710 SW 10th St #1-4 – North Lauderdale
💵 $750,000 | 🏠 Fourplex | 💰 Est. Rent: $7,100/mo
✅ 0.95% Rule | Est. Monthly Cash Flow: $447
Affordable Broward 4-unit with stable tenant history — ideal for steady income.
🔗 View listing

📍 2240 Simms St – Hollywood
💵 $925,000 | 🏠 Fourplex | 💰 Est. Rent: $8,596/mo
✅ 0.93% Rule | Est. Monthly Cash Flow: $1,004
Turnkey investment close to major transit and beach access.
🔗 View listing

🏝️ Bikini Hostel Checks Out for Good

One of South Beach’s most colorful budget stays, the Bikini Hostel, officially closed on July 31, ending not just its life as a backpacker hotspot but also as a temporary refuge for nearly 100 unhoused Miami Beach residents.

The city had struck a deal with JDS Development Group earlier this year, selling the site for a reported $20 million. In the months leading up to the sale, the former hostel operated as a shelter, offering food, showers, and basic stability to people who had been living on the streets. Now, those residents are being relocated as demolition and redevelopment plans move forward.

What comes next will almost certainly lean luxury over low-cost, a mixed-use project that fits the high-end trajectory of Miami Beach’s real estate market.

🌉 I-395 Signature Bridge Revealed — Now Pushed to 2029

Back in June, I told you the I-395 “Signature” Bridge, the $840 million project meant to stitch Downtown Miami and Miami Beach together, was running late, with completion expected in 2027. Turns out, that was optimistic. The new ETA? Late 2029, with the budget now climbing past $840 million thanks to delays, inflation, and scope changes.

The latest renderings show sweeping white arches, upgraded pedestrian walkways, and decorative lighting meant to make the bridge a new Miami landmark. But for now, the only thing getting finished fast are the lane closures.

📈 Miami Ranks No. 2 in U.S. Real Estate Investment Potential

Miami just snagged the #2 spot in the Emerging Trends in Real Estate 2025 report from PwC and the Urban Land Institute second only to Nashville. (Guess we’ll just have to settle for being the Beyoncé to their Taylor Swift.

The ranking credits Miami’s surge in new residents, business-friendly policies, and Florida’s no state income tax, which keeps more cash in investors’ pockets. Add in the fact that some of the world’s richest people now own homes here (yes, including Jeff Bezos), and you’ve got a market that’s as much about status as it is about sunshine.

High-end projects like Casa Bella Residences are drawing investors before the paint dries, while owners of older condos are finding buyers less willing to meet their dream prices.

💵 Mortgage Rates Dip — and Buyers Blink

Following a surprise jobs report and new tariffs that jolted markets, mortgage rates fell for the second week in a row — enough to coax a few more fence-sitters into action.

The average 30-year fixed rate dropped to 6.78%, down from 6.92% a week earlier. While it’s not a massive plunge, it’s the kind of incremental move that can reignite competition in certain price brackets. In Miami’s already tight rental and sales market, even a small uptick in buyer activity can ripple through pricing and absorption rates quickly.

💡 Investor Tip - Creative Financing Moves

I’m adding an Investor Tip section to each issue so you can pick up a new strategy while you browse the deals and news.

Think you’re locked into a 25% down payment for an investment property? Not always. Some investors are turning to seller financing, where the seller acts as the bank to lower upfront costs and bypass stricter bank underwriting.

Instead of getting a traditional mortgage, you negotiate terms directly with the seller, often with a smaller down payment and more flexible approval. This can be especially appealing when interest rates are high, since terms can be customized.

It’s not without risks, you’ll need airtight contracts, a clear plan for repayment, and a seller willing to play ball. But in tight credit environments, creative financing can be the difference between sitting out and getting in the game.