jacjones, Home Buyer in Myrtle Beach, SC

I've read a lot of negativity on condo-tels as investments. Are their any supporting data to show otherwise?

Asked by jacjones, Myrtle Beach, SC Thu Dec 20, 2012

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Yeah, the maintenance fees usually kills the deal. Have you considered a straight condo investment instead? Good units can yield 20-40% cash-on-cash returns.
Web Reference: http://www.archershomes.com
0 votes Thank Flag Link Tue Jan 1, 2013
John, lenders will not finance condos or town homes that have a low owner occupancy ratio, per Freddie and fannie.

Jacjones, as an Investment condo tells often have very high monthly dues, so you have little to no return, or you may even continually be negative... Also, high turnover of occupants = less care and life for items within the unit.

I find that the people who do like these are people who find this within their lifestyle... A vacation home that gets most expenses covered... A business person who stays for a few months then travels...


Have you considered investing in Las Vegas, Nevada?

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0 votes Thank Flag Link Tue Jan 1, 2013
All the marketing aside ask yourself just 1 question. If condo-tels were such great investments why would the prices be so low and most lenders refuse to finance them?????????????......
0 votes Thank Flag Link Thu Dec 20, 2012
Well one could get a "High Yield" CD with a bank at 1% or 6-8% return with a condo-tel with an increase of 18.2% in median sales price from 2011 - 2012 to date according to CCAR market stats. Prices have decreased as much as 60% across the board for all segments of Real Estate, which can be an entirely different debate of why and more importantly how. Most of those lenders are national banks that will not finance. My experience with local lenders who understand our local market and the uniqueness of O.F. has been very positive. What would you advise as a strong investment?
Flag Thu Dec 20, 2012
I would be happy to send you a current spreadsheet with some of the top producing buildings at several different price points. You then, can be the judge if the return on investment fits your criteria.

No obligation...If you like what you see and would like to further discuss current opportunities I will be happy to review with you.

Please email me at jbuehler@kw.com

-Jeff
0 votes Thank Flag Link Thu Dec 20, 2012
Some buildings may have an HOA that has a lot of deliquencies or even a pending litigation but for the most part Condo-Tels can be good investments. Its generally best to target which buildings are of interest and consult with a real estate professional that can investigate further for you.
0 votes Thank Flag Link Thu Dec 20, 2012
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