Beyond the Water: Finding Alpha Inland

1. The "Basis" Argument (Price Per SF)

• The Data: Dated coastal condos are trading at $500–$800 /SF. This Pembroke Pines unit is asking near ~$200 / SF

• The Insight: You are buying concrete and square footage below the "Cost of Replacement." Even with a full renovation budget ($50k–$70k), your total basis remains significantly below the market value of a finished unit in the same zip code and community.

2. The Demographic Tailwind (The "Silver Tsunami")

• The Trend: The 55+ demographic is the wealthiest group in the US. As they downsize from single-family homes, demand for "resort-style" condos (with pools, theaters, bus services) is increasing.

• The Void: There is a shortage of modernized inventory in these 1980s or older buildings. Buyers want the amenities but hate the work needed (think "popcorn ceilings"). The investor who solves this pain-point captures the premium.

3. Amenity-to-HOA Ratio

• The Math: High HOA fees often scare off retail buyers.

• The Alpha: A sharp buyer looks at what the fee buys. In Colony Point, the HOA covers cable, water, insurance, and massive amenities. If you unbundled these services in a single-family home, the cost would be higher. This is "subsidized living" at scale.

4. The Exit Strategy (Liquidity)

• The Flip: This is not a "buy and hold" rental (due to restrictions); it is a "buy, fix, and supply." You are creating inventory for a retiree with cash who needs a turnkey home now.

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