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Who on this board has bought and cares for a second/vacation home, and has it been worth the investment?
Reason I ask, I just saw a piece on Fox, about one bedroom condos in Florida going from $14,000 to $30,000. I have never thought about buying in Florida, but if the prices quoted are true, it almost seems worth it, if you have the money to spend, to purchase one of these as an investment.
All condos quoted were in communities with pools, golf courses, and other amenities. All were one bedroom condos, so I imagine you can find a two bedroom for about $10 to $20,000 more.
I realize the negatives about Florida, but again at this price, if true, it could be a steal as a long term investment. And at the very least, I have a place to retire to, in about 20 years or so.
There are lots of folks taking flyers on FL condos and it's an interesting retirement strategy b/c of the lack of state income tax, etc. BUT, most real estate investors who plan to rent would probably recommend you start with one close to home, unless you're prepared to be cash flow negative for a long tine b/c you outsource everything. And don't forget that most of those condos will probably go in the shitter over time b/c of lack of reliable condo fee flows, so you'd want to pick really carefully.
Isn't this the same line of thought people had before the housing market crash?
what's the condo fee?
Yea, but we are talking $30 to $40,000. Not $200,000 to 250,000. That's why this, on the surface, seems so appealing. Pay $90.00 a month for a mortgage payment, or just buy the thing outright.
Im sure the quality of people living there will be stellar for $90/month
Other weird thing w/ Florida is in some communities you don't actually own the land your house is on. My folks have a place in Port Orange near Daytona in a golf course community, and they own the house but not the land or something like that. And yes check condo fees and weird fines related to condo rules. My folks have to pay a full-time resident to pick weeds out of their flower beds or they get fined. I would say no for reasons of rental unless you are near retirement age and plan to move there because of the outsourcing mentioned.
If you are looking for rental income in this market look to condos and townhouses near military facilities. I have a condo near Pax River that I re-list and re-rent within a week of someone moving out. I had a guy there for over two years who lived full time at Norfolk still but had been moved to Pax....he lived there M-F and went home weekends. Houses are a much more costly re-rent if you get bad tenants, but they do hold a little better possible return value.
This post was edited by redneckterp 13 months ago
I agree with this idea, particularly if you can rent it. BUT, be sure of the location, as you don't want to get stuck in a high crime area, or be required to shop in one.
This post was edited by tagterp 13 months ago
The first question I would ask is why on Earth it's so cheap?
One bedroom condos in Wichita are far more expensive than that.
This post was edited by tecmoHOOperbowl 13 months ago
Pm me for timeshare opportunity.
there's a lot of excess housing stock in Florida. If the community is old there are much nicer and newer communities where people want to live. My aunt passed away last year and they sold her 2BR for $35,000 in West Palm Beach. It was an older community and pretty much needed a gut job. I think the units that are in the areas and communities you want to live start at 200K in the West Palm - Miami corridor.
The key to second home ownership is it better be a place you're passionate about. Buyers remorse sets in the second year when you're like meh, maybe we'll vacation elsewhere just this year. For me, having a second home where my alma mater is was one of the best decisions ever. Not applicable if you went somewhere awful like Raleigh.
Yeah, I've only owned my OC condo for 6 months (so we haven't been through a summer yet) and keep hearing tales about how we'll be locked into vacation and get sick of it, but if we can rent it I don't think that will be an issue. We have willingly gone to the same place in OC for the last 11 years anyway so i don't think we'll get sick if it all if the sudden. We are only 50% owners so that takes a lot of stress off too.
Yeah mine was just a cautionary note. There will always be chicken littles who try and scare you. In ten years, the people who bought in '11-13 are going to look like huge ball having (or ovary having) visionaries.
My parents owned about a dozen units in Delray (sandwiched between West Palm and Boca) that they bought around 20k and sold around $45k in the trough of the bust. Those deals still abound on the aging, low rent places. But the pendulum also swung too far negative for the nice golf course condos. Relatively nice 1br 700 sf places have been stuck in the $80-125 range for like 4 years now. Combination of massive excess inventory, and bigger money going to the high rises on the ocean and bays.
that seems like a setup to a be a nightmare and/or wreck some relationship(s)?
Yeah, not to hijack the thread, but we took a leap of faith and bought into a partnership with complete strangers. Mr. Julester and I are extremely risk averse people but we had a good feeling and went with it. The other partners are a married couple with 25% share and a divorced guy with 25% share. They are all retired and will likely want to get out in 5-10 years so we plan to buy them out when they want out. We have an operating agreement that's like 16 pages long or so.
I've rented homes at the beach for three of the last 4 summers. It's essentially a second home for me for 3 months out of the year. I'd buy but I simply cannot afford what I'd want to buy. I love having the house and being able to keep my stuff there, not having to check out when I have to, etc.
that def sounds like a nightmare. What happens when something breaks or needs to be updated and the 25% retiree doesn't have the coin or doesn't want to do the repair.
Most foreseeable situations spelled out in op agreement. We keep a year's worth of expenses in a reserve acct which I control. It is majority rule so we could team up and essentially push someone out if we really wanted.
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