With a South Fort Myers FL Condo is it better to sell at a loss or to rent it out and wait for better times?

Asked by Terry Chapman, Fort Myers, FL Thu Oct 9, 2008

We took advanctage of the down market and bought a larger seasonal home in the same gated community and now have a condo for sale. The empty condo has carrying costs of $8,000 per year. We could drop the price by $25,000 below our cost and sell the condo or we can invest $20,000 in furniture and rent it out for $10,000 per season. Should we sell and accept the loss now or treat it as an investment and wait for the market to strengthen?

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Sarah Garrett, Agent, Fort Myers, FL
Sun Oct 12, 2008
Hi Terry,
I can sympathize with your situation however do not sell for the lose at this time. You can find lots of near new furniture out there to furnish this condo and then rent it out until the market takes the upturn. When you are ready please contact McGregor Baptist Chuch at 936-1754 and ask to advertise your rental in the weekly newletter. Managing you own rental is not that difficult and can save you a lot. Let me know if I can be of further assitance to you. Best regards.
Sarah Garrett 239-464-8620
0 votes
Terry Chapman, Home Seller, Fort Myers, FL
Fri Oct 10, 2008
Thanks for your input, I really appreciate the ideas. There seems to be a concensus that renting is the best option.
In Response to your questions the 2 bedroom/2 bath 1475 sq ft 4year old condo is located in Colonial Country Club. My competition in selling my particular unit are two short sales listed at $139k, and a normal listing at $157k, the others are in the $190k and up range. My original strategy was to list at $174,900, with heavy marketing and probably "settle at $170 for a small loss.. For a quick sale I will have to list lower than my competition of $157k thereby realizing the larger loss over my original purchase price. There are lots of other types of condos for sale and rent in my community. Prices seem to be stabilizing, but there are alot more short sales that will be comming on the market.
Renting poses some administrative and logistical problems. Furniture, rental agency, bad tenants etc. I have never been a landlord before and am wondering if it is worth the stress?

Many thanks for your assistance.
0 votes
Marc Comisar, Agent, Bonita Springs, FL
Thu Oct 9, 2008
It really depends on the strength of your community. Which community do you live in?
0 votes
Jeffrey Nyla…, , Austin, TX
Thu Oct 9, 2008
Hi Terry!

Always buy low and sell high! I would hang on to it if you can and lease it out. Florida will turn around soon and you will have a hot piece of real estate to sell later.

Or just hang on to it, lease it out and if allowed in Florida, refinance it in 10 years on a home equity loan and put that extra tax free cash you get straight into you bank account. Do not worry too much about what the monthly mortgage will be then. You will have a renter paying it. Please let me know if I can explain further.

Best Wishes,

Jeffrey Nyland
0 votes
Bill Eckler, Agent, Venice, FL
Thu Oct 9, 2008

You are headed in the right direction. If you go the rental route, you can do much better than $10,000 to furnish your condo. We have done this several times and are able to find nearly new furniture are used furniture stores, bargin barns, lawn sales, etc.

Our experience shows you should be able to completely furnish a 2/2 condo for under $5,000 and have it be in eye popping condition. Experience the thrill of treasure hunting and find those bargins..............

If you rent it during the "season" and put it on the market in April furnished, it may show better and bring more money as a "turn key" property.

Good luck,
0 votes
Mott Marvin…, Agent, Sunny Isles Beach, FL
Thu Oct 9, 2008
There are a few variable to consider...
• Is there alot of available units in the community?
Rental & For Sale
• Is the community desireable?
• Are values stable and/or appreciating?
• Are values declining steadily

Things will improve- I'd say rent it and hold on....
0 votes
Scott Riddle, Agent, Naples, FL
Thu Oct 9, 2008

There is not enough info here to give you a good answer. Please let me know what community you are in, unit, etc... So I can get you back some options and the pros and cons. Please call me so we can discuss.


Scott Riddle
239 289 1849
0 votes
LLoyd Nichols, Agent, Fort Myers, FL
Thu Oct 9, 2008

As for selling now versus renting, you need to consider not only furniture but the cost of hiring a rental person or advertising the property yourself. If you would like a free market analysis of the current value of your property, please contact me.


LLoyd Nichols
Right Choice Realty LLC
6360 Presidential Court, Suite 4
Fort Myers, FL 33919

cell: 239-810-2980
Fax: 239-463-4826
home office: 239-463-5217
Active Rain Blog: http://activerain.com/lloydn
Website: http://www.mlsouthwestfloridahomes.com
Website Blog: http://ftmyershomesandgardens.blogspot.com/
0 votes
NonRealtor, , 23456
Thu Oct 9, 2008
Do you really think you can rent it out for $10K per season? I would think that someone would rather buy something similar for 10K per year. What do you think?
0 votes
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