Originally posted by Incline
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Condos, how do they work?
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Originally posted by froghunter View PostCare to elaborate?Originally posted by TexasBob View PostPlease show your work. My math is different, especially if he is talking VRBO in a popular area.
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Originally posted by flywise View PostDo you get any loss of use with your insurance to cover lost rent?
OP, we are not in the rental pool and pretty much manage or own rentals. I guess our TBH renters will have to find an alternative for awhile. The rental income never offsets the monthly assessment, insurance costs, and any yearly special assessments (pool, project, new roofs, landscape, etc.). Bill Whitten, a long time realtor in Port A said, "Don't plan on making any money renting, the money will be in the appreciation of the property." Ours could be available for the right price.
If I was younger and had the resources, I would think about buying a fixer up rent house, get someone on a good yearly lease, and let them pay off my asset.
Hogboy
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My grandparents have on in Red River, NM. We all get a lot of use out of it. They rented it out for the first ten years until they had it payed off and then quit renting it. Since my grandpa died my granny has really talked about letting it go. They've recently gone under new management and every time she turns around it's more money more money.
I'd like to eventually get on in Orange Beach or Gulf Shores. We go every summer and spend 3-5k on one anyway, might as well have my own investment.
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Originally posted by Leonhogboy View PostNo coverage for lost rental income, but that is pretty insignificant to us. Since we spend 7-10 days a month in Port A, it really impacts us more by not having a bed.
OP, we are not in the rental pool and pretty much manage or own rentals. I guess our TBH renters will have to find an alternative for awhile. The rental income never offsets the monthly assessment, insurance costs, and any yearly special assessments (pool, project, new roofs, landscape, etc.). Bill Whitten, a long time realtor in Port A said, "Don't plan on making any money renting, the money will be in the appreciation of the property." Ours could be available for the right price.
If I was younger and had the resources, I would think about buying a fixer up rent house, get someone on a good yearly lease, and let them pay off my asset.
Hogboy
So you totally rely on vacation rental then? I'm in a college town and would have a year lease set up.
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Originally posted by froghunter View PostYes! Buying a condo to use as rental income.
The best part is if your condo doesn't have a rule against rentals all it takes is a vote by the HOA to put a rule on the books and you'd be SOL.
Having a renter in a condo complex with tick off all the owners and every time your renter farts you'll have complaints.
Selling a condo sucks too. Most of the units are similar if not the same. If you're trying to sell and there are 3 more units just like your's trying to sell then you all end up pushing the price down on each other.
I wouldn't walk away from a condo....I'd run. Been there done that.
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Originally posted by TxAg View PostNo offense, but that sounds like a terrible idea
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Originally posted by texan4ut View PostYou own paint to paint on the interior and a percentage of the common property. HOA pays for all exterior maintenance, grounds, and any amenities such as pool, clubhouse, park etc. I appraise them all the time. The comment about if one gets foreclosed one you can't sell it is nonsense.
All condos are not rip offs. Actually, many are in the big cities and not even at vacation destinations that some people would be lead to believe. The HOA fees are a big deal and can vary significantly from property to property. With that said, the services some of these HOAs provide and property amenities also can vary greatly; hence the reason the fees can be all over the place.
Like anything else, just do your research. Compare purchase price, HOA fees, amenities to multiple properties in the area you desire, etc. Obviously, purchase price is affected by property location, unit location, amenities, HOA, etc.
I lived in a condo for a couple years in Houston. The layout was similar to a nice apartment complex; only less units. The paragraph above described the situation perfectly. I owned the until and interior was on me. Paid something like $300 per month in HOA fees; which covered exterior insurance, landscaping, security gate maintenance, common area maintenance, garbage pick (at my door), water, basic cable, etc. The monthly fees weren't all that bad compared to everything provided. Think about it, if you own a stand alone home, you pay for many of those services regardless.
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