Home Buying in Longboat Key>Question Details

Lbk Lookin, Home Buyer in Longboat Key, FL


Asked by Lbk Lookin, Longboat Key, FL Sat Feb 26, 2011

I'am looking to buy a condo in longboat Key. The lender has it brought it to my attention that this may be a condotel. Which is apparently tlenders do not like since it is more of a investment. The property has onsite manmnt and weekly rentals. The property has just had a 10 million renovation. Produces a nice return as well. I have never purchased any real estate in florida (or condo) and it seems that these condos that have weekly rentals may be difficult to obtain financing. My question is are these places more difficult to sale in the fututre because it is more of a investment type of property ( we will stay there 2 months out of the year). How can I obtain financing for the property or should I run the other way and stay away from this property. The property is located next to a hilton hotel. The name of the place is Sand Cay Condo. any input would be greatttttlly appreciated.

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Bernardsdaughter’s answer
Wow, these questions bring lots of realtors to this site. I will be purchasing on "one of the barrier islands" putting down 50%. I can't imagine someone putting down less than 30% but maybe buyers still think they can come in with low down payments in this real estate economy.

I'll have more questions as the realtor I was working with stopped contacting me. Due to the loss of my Mom and other family factors, we delayed our move was all. I want a realtor who isn't a barracuda with me, honest, realizing how important a home purchase is for us and who will look out for us. Perhaps a buyers agent would be best but I still don't understand the concept. The seller IS paying the commission. Good luck to all of you. Interview your realtors carefully and be sure you're working with someone that has your best interests at heart.
-Soon to be in your area from the NE.
0 votes Thank Flag Link Wed Oct 5, 2011
Just curious - what did you buy?
0 votes Thank Flag Link Fri Aug 3, 2012
Investment properties, as opposed to second homes and vacation homes are often very difficult to finance with traditional (bank and credit union) sources. If you have cash, you could obtain a better return, and also have the opportunity for capital appreciation. There are few properties on Longboat Key with potential for rentals of less than 30 days. The 30 day rule is a Town of Long Boat Restriction. Many condos also have 3 month or seasonal minimums. If you spend time on LBK...you will appreciate the difference. One of the benefits of these condotels...you do not have to manage the property...just collect a check, net of the management fees. When you consider return...also consider the condo maintenance fees.

If you would like to consider all you options on Longboat Key, as well as other barrier islands, please call me: 941.993.4078

Diana Kryszak dianakryszak@michaelsaunders.com
Michael Saunders & Company 330 John Ringling Blvd St Armands Circle
0 votes Thank Flag Link Tue Apr 5, 2011
Condotels are more difficult with Lenders. You are correct. There are Boutique Lenders in the state that offer fianancing however, your interest rates would be much higher. Have you looked into all the costs? Especially Assesments and Condo Fees? What type of return are you looking for on your investment? Rental income today might cover taxes and Fees but, not the mortgage. I would like to present all the options for short term rentals and then proceed on providing the information on perhaps 1 month 12x per year in complexes that mortgages have been obtained. My cell is 941 539 3384
0 votes Thank Flag Link Sat Mar 19, 2011
I have sold condos at Sand Cay and it is a great investment if you do not mind the turnover rate with weekly renters coming in and out. I recommend you take out a home equity loan on your current home and pay cash for condos in this market. Most lenders will not lend on condominiums with high tenancy rates. Let me know if I can help you negotiate your purchase.
Web Reference: http://www.tammymast.com
0 votes Thank Flag Link Sat Mar 19, 2011
The Sand Cay Condo is a great place, on the guld side. They are not difficult to sell, when the time comes, because they have such a liberal rental policy, except that these days many mortgage companies are not willing to provide mortgages (FNMA, FHA) where there are so many units that are rented.

However, if you can put 30% down on a unit and get a conventional mortgage, you'll be fine.

Of course, it's important to consider all factors when hoping to buy, but also to consider these same factors when thinking ahead to a time when you will want to sell. Will it be easy to find buyers who have 30% to put down on a $400,000+ condo? Or to find a cash buyer?

Our office has a unit there priced at $424,900....all renovated, gussied up with granite and everything. What's the price of the unit you are looking for.

Good luck. If you are working with a Realtor, she should be able to provide this information. If you are not working with a particular Realtor at this time, feel free to call me. It's not always a good idea to buy directly from an owner, since you may not be provided access to information you may need to make a thoughtful decision.

I can be reached at tama@tamatraberman.com via email, or at my webside, http://wwww.searchlongboatkeyhomes.com.

Tama Traberman, Michael Saunders & Company, 3174 Gulf of Mexico Drive, Longboat Key FL 34228
0 votes Thank Flag Link Wed Mar 2, 2011
Lender is correct about Sand Cay. best advice good investment there if you are cash buyer. Weekly rentals properties almost impossible to finance, there may be portfolio money out there but very expensive. I would be happy to help with a Condo that you could get financing for. We are very familiar with Longboat inventory our office is located on Longboat
0 votes Thank Flag Link Sat Feb 26, 2011
Sand Cay is one opportunity. There are others with more recreational amenities and track records of occupancy.

The better managed condo hotel receives better ratings for financing.

I would highly recommending that you explore all the opportuniites.

Call me if you would like some help.

Tim Field, Broker-Associate.
Michael Saunders & Company
440 Gulf of Mexico Dr.
Longboat Key, FL 34228
cell 941-350-0332
0 votes Thank Flag Link Sat Feb 26, 2011
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