VP Sales & Managed Property
Petrus Realty Group
Ft. Lauderdale, Fl
Lots of options to consider. I feel confident that you will be much better off with purchasing a condo in a smaller building, one with less upkeep than some of the larger buildings. Best to keep close to the beach, especially for rental purposes. I come across great deals on apts of this caliber all the time. I have a fantastic deal on a 2/2 in Victoria Park. Great for renting and living. Priced well within your budget. If you would like more details, just drop me a line or give a call.
Best of luck
Isn't it amazing that in all the responses you've received for your query,they are about 50/50 for either choices.
The main advantage for a condominium is that your unit is managed for you (not rented out for you by the association management but the entire building is managed by the association management) and you can leave your unit "unrented" or empty for long periods of time without worry about it. The downside of condos is that most condominiums will not let you lease your unit within the first year of your ownershop. Then, you can rent only one time for each year thereafter and leases are limited to only one ne time per year, 90 days minimum. So, if you rent, say for 3 months during hte season (that's what seems to be the most popular because of the ever popular winter season flooded by 'snowbirds"), then you CANNOT rent for the rest of the year.
Many Realtors answers have frown over condo "fees" as if it is something you give to the condo association for nothing in return. Condo fees are the cost of operation aportioned per unit size. Whether you like it or not, owning a house, you also have monthly expenses to run that house (lawn maintenance, pool maintenance, flood. wind and liability insurances and water/sewer/garbage). So, it is really not cheaper to own a house.
On the other hand, if you own a house, you are in total control of your renting schedules -- you can rent by the day if you want it -- unless, of course, you buy a house that has a community or home-owner association.
Tom Priester suggests that you invest in North Palm Beach for a "better quality of life". I think you need to define what is your "quality of life". Yes, if you need to live in tranquility with less traffic congestions but nothing else to do except to play golf all day, every day, sure that is the place for you. But who is to say that that is "quality of life". What if you are an active, on-the-go people who like to be surrounded by energetic, dynamic and vibrant mentality people? Well, West Palm Beach or any of the west coast of Florida cities may not be for you.
You might consider your options in northern Palm Beach County for a higher quality of life with less traffic and congestion than you will find in the rest of south Florida. Today I want to show you what the numbers look like on a Class A property in the heart of Palm Beach Gardens. This development is new construction with impact glass, high quality finishes, a very solid association with excess reserves and great amenities in a top rated location. One bedroom units have a better return as the association fees here are much lower on a 1 bedroom as they are based on square footage. The increase rents also do not outweigh the additional cost of 2 bedroom units. The development is in the best location with easy access to what attracts everyone to south Florida; incredible beaches, a multitude of dining and shopping options and a fantastic night scene.
Rental market here is strong for one bedrooms; 4 units rented over the past 90 days with only one unit on the market. Rents have been in the $1,100 range but this particular unit has an amazing private setting that is among the best I have seen in the community so it should bring $1,200. It will probably take $121,00 to buy.
If you pay $121,000 and have $14,400 in gross revenue (if you rent yourself) and expenses of $2,616 for association fees, $1,866 for property taxes and about $500 in insurance you end up with about a 7.7% cash on cash return and a top quality property that will have a much better appreciation than fringe locations. Even when buying a home for your own use it is good to know how strong the metrics are surrounding that property.
If I was looking for an investment property today this is the deal I would snap up in a heartbeat. If you would like me to send you the information sheet on this property or to discuss your particular goals in more detail please feel free to contact me at your convenience.
"Results Driven Real Estate"
Keller Williams Realty
Phone: 561 308-0175
The home will maintain its value much stronger than any condo will. You are can control cost much more efficiently and when it comes time to sell there will be many more potential buyers.
Charles Rutenberg Realty
Hope that helps you. Please feel free to call me with any other questions you have - 561-445-8743. Also, feel free to look on my website for properties listed on the MLS.
Nicole Marks Mason, Realtor
My reco is to purchase a residential income property i.e. duplex or triplex. Many condo associations are encountering financial difficulty due to the high number of unpaid maintenance or assessment fees by owners who have encountered short sales and foreclosures. This is why most investors shy away from condos today.
For the same amount of money invested, residential income properties tends to give a better ROI than a single family homes because you have more tenants for about the same square footage. Basically, you just need to make sure that the property rents well and covers the costs necessary to take care of the it. The rest is gravy. A cap rate of 13%-18% is very possible in today's market with a $150K investment.
Great Choice Investing in this wonderful Buyers Market. This is a great question. A home is the american dream and though in Florida condos are great a home is great for resale. As a new investor you want to make sure rents cover a majority of your expenses.
Condo have maintence dues, surprise assesments,rules and regulations, and an association Board of Directors. Many condos have renting restrictions so make sure if you decide on a Condo you read all the by laws.
A Home is very desierable. As Owner of rent finders of south florida, I can assure you the rental market is very strong. There are many wonderful home purchasing options in your price range. You can also hire a Property Managmenet company ( Like Ours) and they will take care of all maintence and tenant placement. This will put you at ease with worries and headaches.
I will be more than happy to compose a Investors Profolio for you at no cost to you. Please call or vist our website. Happy Investing Henry!!!!
For $150,000, I would definitely go with a condo or townhouse. It's likely to be less aggravation for you when it is empty and in your absence. You will be able to buy something fairly decent for this price whereas a single family won't be in a particularly nice area.
You would need a property that has no rental restrictions and a reasonable monthly fee, but you could certainly find something very nice in the area, Rentals are in demand down here because of the difficulty people are having in getting financing for new homes.
I work with a lot of out of state buyers and they've been very happy with their investments. If you would like to talk more about this or would like more information, please don't hesitate to get in touch with me.
Best wishes from sunny South Florida,
Villa G Realty, Inc.
I would personally recommend a home. This will vary based on your interests and what you would like to have as far as ammenities, privacy, etc. Homes are relatively easy to rent in the current market and finding well qualified tenants is easier than before.
Send me a message if you like and I can answer more quetions for you in regards to specific areas for investment. I work with cash buyers regularly and my first experience in the real estate business was as an investor & property manager.