We're in the process of buying our first home in the Miami Beach area. My plan is to live here with my family for 2-3 years and then rent it out. I picked Miami Beach since my brother lives there and, in addition to family ties, he and his wife know contractors, realtors, and know a few things about the area which makes me feel better about investing in a city a turbulent time for RE.

My brother lives in a very nice Miami Beach town, good community, higher prices, stable. They're telling us that only about 20 blocks south of them, there is an area that is also pretty nice, not as expensive, has new-ish condos to choose from AND the area will get some renovations done to improve public access, will have more shops built, more high rises, etc. The idea being that prices will increase there in the future because of the public improvements and investment. This isn't just their opinion; the improvements are planned out and everyone seems to be in the loop about them.

As a first time not only investor, but also home buyer, should I take a chance on that area? Or should I not get carried away and just buy something in a stable area that will have gradual price increases like the town where my brother lives?