Modeling ROI For Brickell Condos With HOA Costs

What if the HOA is the real swing factor in your Brickell condo ROI? When you look past glossy amenities and views, HOA fees, reserves, and assessment risk often make or break returns. If you are comparing multiple towers or weighing an older high-rise against a newer luxury building, you need a model that puts everything on equal footing. In this guide, you will learn a Brickell-specific way to normalize HOA costs, size assessment risk, and compare buildings apples to apples. Let’s dive in.

Why HOA fees drive ROI in Brickell

Brickell is a dense, amenity-rich urban district in the City of Miami filled with high-rise condominiums. Building age, construction type, and amenity level vary widely, which means HOA fees and reserve needs vary too. High-rises with extensive staff and facilities typically have higher monthly fees, but they can also support higher rents. Your model should capture both sides.

Florida’s legal framework for condominiums is set by Florida Statutes Chapter 718. Since 2021, there has been increased attention on structural safety and reserve practices, which has raised the incidence of capital projects and special assessments in some communities. Lender project rules also matter. Buildings with governance or funding issues can face financing headwinds under Fannie Mae condo project standards.

Build a Brickell condo ROI pro forma

Use a simple, structured template so you can swap in building-specific inputs.

Income

• Gross scheduled rent (market rent or actual lease)
• Other income: parking, storage, pet fees, amenities billed to tenant
• Vacancy and credit loss: use a percent allowance

Operating expenses

• HOA/COA fees: break into operating portion, reserve contribution, and any master insurance or utilities included
• Property taxes
• Unit insurance (HO-6), flood insurance if required, and coverage gaps not in the master policy
• Property management fee (if leasing)
• Repairs and maintenance (turnover, systems, appliances)
• Utilities not included in HOA
• Marketing and leasing costs
• Legal, accounting, and admin
• Assessment contingency (modeled separately, see below)

Financing costs

• Mortgage principal and interest
• Mortgage insurance if applicable

Capital and reserves

• Unit-level capital expenditures and replacement reserves
• Building reserve contribution if accounted for outside the HOA fee

Key outputs

• Net Operating Income (NOI)
• Cap rate (NOI divided by purchase price)
• Cash-on-cash return (before tax)
• Debt service coverage ratio (DSCR)
• Multi-year: IRR and equity multiple
• Sensitivity for rent, vacancy, and HOA changes

Normalize HOA fees for apples-to-apples

Your goal is to compare buildings fairly, even when they include different services.

• Convert HOA to dollars per square foot per month and dollars per unit per month.
• Split HOA into operating vs. reserve contributions if disclosed in the budget.
• Create an inclusion checklist: water, cable or internet, gas, master building insurance, parking, valet, concierge, security, gym, pool, exterior maintenance. If one building includes a cost and another does not, adjust the comparison by adding or subtracting the equivalent expense.
• Model parking separately as revenue or expense so you can normalize across buildings with different parking policies.
• Present per square foot and per bedroom metrics to compare different unit sizes.

Model special assessments and reserve risk

Assessments can reshape cash flow. Model this explicitly so your ROI is realistic.

What to pull from association documents

• Latest approved budget, including the split between operating and reserves
• Current reserve balance and any reserve study recommendations
• Board meeting minutes and owner notices about capital projects
• Any approved or pending special assessments and payment schedule
• Delinquency figures and any operating shortfalls

Two simple ways to model risk

• Scenario analysis: Build Base, Moderate, and Severe cases. In Moderate, model a one-time assessment sized to a known shortfall. In Severe, model a larger one-time assessment for major remediation. Show impact on cash-on-cash and IRR.
• Recurring contingency: Add a yearly “assessment contingency” expense. Size it using building age, reserve sufficiency, inspection findings, and known project pipeline. Show model results with and without this line.

Heuristics to size the contingency

• If a reserve study shows a shortfall, spread that shortfall over a reasonable period as an anticipated owner contribution if the board is unlikely to raise reserves sharply right away.
• Without a study, use age and signals of deferred maintenance. Older buildings and active code or engineering items merit a higher contingency.
• Present a band rather than a single number. Label estimates low, moderate, and high with clear drivers.

Reserve sufficiency metrics to compare

• Reserve balance as a percentage of recommended reserves
• Reserve per unit and reserve per square foot
• Reserve contribution as a percent of the annual budget

These ratios help you evaluate whether a building with higher fees has stronger long-term protection than a building with lower fees but underfunded reserves. For background on reserve studies and budgeting, see the Community Associations Institute’s guidance.

Assessment timing and logistics

Assessments may be due at once or in installments. Some associations offer financing options, but many require owners to pay directly. Nonpayment can lead to fines or liens, which can affect closings and lending. Review the condominium documents for voting thresholds and procedures under Florida Statutes Chapter 718.

Brickell due diligence checklist

Gather consistent documents for every building you consider.

• Latest annual budget and line-item detail for reserves
• Reserve study and any recent engineer reports
• Minutes from recent board meetings and AGM notices
• Declaration, bylaws, and rules, including rental restrictions and any short-term rental limits under local regulations
• Master insurance policy summary and certificates
• Owner delinquency summary and any current operating deficits
• Inspection history and permits. Use county records via the Miami-Dade Building Department.
• Property tax history and ownership records via the Miami-Dade County Property Appraiser
• Flood zone classification through the FEMA Flood Map Service Center
• Lender project eligibility considerations using Fannie Mae’s standards

Simple workflow to compare two buildings

1. Pull budgets, reserve data, and HOA inclusions for both buildings.
2. Convert HOA to dollars per square foot per month and dollars per unit per month.
3. Adjust for included services so each building reflects the same basket of owner-paid costs.
4. Use market rent comps to set gross scheduled rent, then apply a vacancy allowance.
5. Add unit-level insurance, taxes, management, and repairs. Layer in your assessment contingency.
6. Enter financing terms. Calculate NOI, cash-on-cash, DSCR, and cap rate.
7. Run sensitivities: plus 10 percent and plus 25 percent HOA, and one-time assessment cases.

Red flags that merit a pause

• No reserve study or outdated reserve analysis
• Large projects discussed with no clear funding plan
• High delinquency rate or recurring operating deficits
• Unresolved code orders or significant engineering findings
• Lender warnings about project eligibility

How we help you execute

You want a clear picture before you offer. Our team helps you gather and interpret the right documents, normalize HOA inclusions, and build an investor-ready pro forma that reflects Brickell’s high-rise realities. We can coordinate with associations to obtain budgets and minutes, surface reserve and assessment exposure, and provide current rent and leasing benchmarks so your income assumptions are grounded.

As a high-volume, hospitality-rooted team, we support buying, selling, leasing, valuations, and curated marketing for higher-end listings. We also serve international and relocation clients with multilingual support. If you want a second set of eyes on a building’s HOA or a side-by-side analysis of two Brickell towers, we are ready to help.

Ready to compare Brickell condos the right way? Connect with The Tello Team for a risk-aware ROI model tailored to your unit and building.

FAQs

How to compare Brickell condos with different HOA fees?

• Break HOA into operating vs. reserves, convert to dollars per square foot, adjust for included services, and evaluate reserve sufficiency with simple ratios.

Should investors worry about special assessments in Brickell?

• You should review reserve studies, inspections, and project plans, then model Base, Moderate, and Severe scenarios so your returns reflect realistic risk.

How big should the assessment contingency be in a pro forma?

• There is no universal number; size it using reserve shortfalls, building age, and engineering findings, and show low, moderate, and high cases.

Do lenders consider HOA finances and assessments on Brickell condos?

• Yes; project eligibility rules and underwriting review HOA financials, delinquencies, and assessments, which can affect loan terms and availability.

Are HOA fees and assessments deductible for investors?

• Recurring HOA fees are typically deductible for rentals, while capital assessments may be capitalized or depreciated; consult a qualified tax advisor.