Hi Richard,

I agree with most of what the others have said. My main recommendation is an ALL AGE community. I have several customers with condos in 55+ communities. The restrictions there make them more difficult to rent, and harder to get a positive cash flow. Don't forget to factor in the cost of the HOA dues and the property taxes.

By shear numbers if you have something in an all age community, the likelihood of finding a tenant is greater. I'm going out with someone tomorrow looking for a similar set of criteria. There is a lot of product available in nice communities, in the price range you are quoting.

Give me a call and I will be happy to provide you with information on what is available. I look forward to hearing from you.

Nadine Mauro
The Herman Group Real Estate
561-414-0864
NadineMauroRE@yahoo.com

Hi Richard,
I sold my dad's place in Century Village in Boca Raton off of Lyons Road a few months ago. The good news is that there are a ton for sale. My dad's place sold because he had gutted the place. You can buy them really, really, low like $25K - $35K, throw in new baths, kitchen, air conditioning and I believe you will have a good return.....

King's Point has too many rules. My mother-in-law lives in one in Tamarac. Horrible! You can't even take bottled water to the pool area!

Richard, Be very careful when buying any property in any type of community. By definition, there are more rules. More rules = less profit + more hassle. The biggest rule that may slap you up the side of the head is many communities are limited to owner occupants. Also, the dues you pay have the potential to be capricious. What you calculate today may look like a good cash flow. What it is tomorrow may be a great $$ vacume hooked into your pocket. Also, you may have many expenses you do not anticipate in mandated upgrades/maintenance, a possible example, paint lasts 8 years but you are required to paint every 6 years.

For any rental, be sure to count all the costs. There are many hidden ones and tax consequences. Know what you are doing before you are obligated.

If you had the capability to put together a 55+ park, it might be a great source of income. Just buying a unit in a 55+ park has many potential pitfals. It may be a great idea, each community is different, but, check it out thoroughly. Dave Atherton, Spokane WA

Richard,

I think that you have an interesting idea - but the problem with Century Village is being able to cash flow. They are on a Rec Lease - meaning that you own the Condominium but NOT the land - there are Home Owners Associations for each cluster of buildings plus a master association plus the lease which would essentially eat up your rent very quickly once you add on taxes.

Kings Point is a little less per month in HOA dues...

Right now, despite the economy - the Homeowners Associations are being stricter on rentals instead of easier. They're trying to make sure the community stays in good stead.

I believe that there are some great rental deals out there - but I would consider focusing on some all-ages communities with lower monthlies... there are still plenty of 2 bedroom units in Boynton Beach and even some in Delray that you could get your hands on near to your budget. Further North in West Palm Beach there are even more.



David Podgursky
Broker-Associate
Boca Executive Realty
561-504-6949
davidp@bocaexecutive.com

Hi Richard!
I agree with all the answers that my colleagues have already given. I will add that the minimum rental term that approx 99% of over 55 condo association will approve is 6 months and the max is 1 year. If you do buy a unit, whether in an over 55 community or not, I would suggest that you take out an annual service contract to cover repairs. That way the tenant can call the service people should the air cond not work or if there is a minor leak, etc. Approximate costs fall between $250 to $400 depending on the age of the appliances.

Regarding your return on your investment my feeling is if you "buy right" your ROi will be good when the market turns around and you desire to sell.

That being said, I have a new and terrific "estate sale" listing ($49K) in Century Village and the same in Huntington Lakes in Delray ($134k).

Wishing you luck!

JOAN LORBERBAUM MOORE
Broker Associate
Lang Realty
9858 Clint Moore Road
Boca Raton, FL 33496
joanmoorerealtor@gmail.com

Richard,

I dont think Century Village or Kings Point allows short term rentals. The best area to buy a home zoned for short term rentals in Davenport Florida. If you want to stay in Palm Beach County try looking in Briar Bay, the two bedroom condos there rent well and are all ages. They are a bit higher in price compared to Century Village though.

Cheers!

Hi Richard,

I believe that Century Village in Boca Raton and Kings Point in Delray Beach requires that the buyer own the property for a minimum of 1 year prior to renting it out. Personally, I would look for properties that are all age communities that allow for immediate rental. Hope that helps.

Best,

Gia

Hi Richard,

Biggest problem is the limited number of people who are looking to rent units in these communities. I have investors that bought units in adult communities, only to find that they are now unable to rent the units for the amount of money necessary to cover the expenses (maintenance and taxes). My recommendation would to buy something in an all age community if you want it to be an investment property.

Nadine Mauro
Regency Realty Services
561-414-0864