The main question I have for you is: How much do you want to spend?
There are several condo/hotels along the coast of Palm-Beach, Broward and Dade counties. Again, the price of a unit in a prestigious condo-hotel like the Ritz-Carlton in Ft Lauderdale will be significantly higher than a condo-hotel at the Doubletree on the Intracoastal. Presently, there are several condo-hotel owners at the Ritz that have their units for sale ranging from $1.2 millions to $14,000,000 for a PH suite (they are all huge 2 and 3 bedrooms condos starting at 1,600 sq. ft and the $14M PH rents for $5,000/day or $30K/mo.) The Doubletree has only small double queen-bed units starting at about $195,000.
NOTE: Condo-hotels will not guarantee you that your unit will be rented out every day; in fact it can be vacant for weeks but you have to look at the whole picture: How much money will you net at the end of the year? In addition to the high split with the hotel, you will have to pay property taxes, luxury hotel taxes, heavy liability insurance, repairs and you will have to refurnish your entire room when the hotel will redo all the rooms. There are many people who are losing money at the end of the year but there are many others who just break even or only make a few bucks and there are a very few that actually make a great return.
Do your homework, investigate those hotels and study which units tend to be the most in demand (hence, will have a greater cash flow) and etc. Also, the ones for sale that have the highest sales price are usually the ones who generate the most money (Ex: Why someone wants only $175K for his unit while someone else wants $350K for the same unit? The unit has a better location, therefore, a better demand)
You can make good money if you with a condo-hotel unit if you buy the right one but not all make money.
Depending if you plan on using the property as an additional vacation property for yourself or not will determine whether or not it's the best option as a cash flow property. Condo/hotels tend to have higher than normal maintenance costs due to having more amenities tailored to a hotel. Additionally, financing will be harder to get with higher down payment requirements and higher interest rates. Studio units without full kitchens may not be eligible for coventional loans at all. Then you'll need to consider the cost of renting the unit, either through the hotel at a high share/cost or through a broker willing to take a the task of nightly rentals consistently enough to generate enough income keeping your vacancy rates low. If this is something that interests you and want to discuss more please let me know as I have experience in this field managing several condo/hotel units, most recently in Ft Lauderdale Beach Hilton.
Ryan Hanrahan, PA
Chrisopher White Group
I will be happy to help you with that. There are investment properties of all types in this area. Please feel free to contact me directly.
Clay Savoy, SFR, TRC
Prudential Florida Realty
1306 SE 17th Street
Fort Lauderdale, FL 33316