Investor · Fort Lauderdale, FL · Member since 2013 · 917 posts · 606 votes
A n00b contacted me about the numerous "great deals" he was seeing FSBOs offering on their condos throughout Florida. As a resident of the HurricaneSunshine State, I can tell you it's Fool's Gold. The assessments. . .it's all about the assessments. https://finance.yahoo.com/news/poison-pill-facing-florida-co...
Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
2y
Good article.
I had a feeling the Surfside tragedy would create waves later for ocean-front condos.
I agree with your assessment, and would apply your advice more broadly to all condos in the US. While certainly not as extreme as the examples in the article you shared, I've seen condo owners in many states hit with special assessments. (There are too many poorly-run HOAs out there.) It is a bad idea to make investment decisions where a key part of your return is dependent on decisions that are entirely out of your control.
A n00b contacted me about the numerous "great deals" he was seeing FSBOs offering on their condos throughout Florida. As a resident of the HurricaneSunshine State, I can tell you it's Fool's Gold. The assessments. . .it's all about the assessments. https://finance.yahoo.com/news/poison-pill-facing-florida-co...
That's not the only troublesome thing about condos in florida (for investment purposes). HOAs, insurance premiums, taxes, up against waivering income make those properties such a challenge. I've had to decline many loan requests because the income production doesn't cover the expenses and there's no way to make the math work. Condos writ large are challenging and need to be heavily underwritten (including even assessments which we don't look at as lenders) before being undertaken.
Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
2y
Good article.
I had a feeling the Surfside tragedy would create waves later for ocean-front condos.
I agree with your assessment, and would apply your advice more broadly to all condos in the US. While certainly not as extreme as the examples in the article you shared, I've seen condo owners in many states hit with special assessments. (There are too many poorly-run HOAs out there.) It is a bad idea to make investment decisions where a key part of your return is dependent on decisions that are entirely out of your control.
Investor · Fort Lauderdale, FL · Member since 2013 · 917 posts · 606 votes
2y
Friends of ours moved out of their long term residence, a high end condo in Aventura, FL. Why? They were hearing rumors that assessments were coming down the pike to the tune of $100K. I recall telling them that's impossible. $15K, $25K, sure, that's what you can expect. But $100K?! Well, fortunately they didn't listen to me, sold at a fat profit and bought a house in Boca Raton. Ironically, that $100K assessment is now looked at as a bargain. Stop the insanity!
Orlando, FL · Member since 2024 · 8 posts · 1 vote
2y
This is a good summary of the situation with condos in Florida right now. We are seeing many units being listed for sale in Orlando, FL for these reasons too.
A n00b contacted me about the numerous "great deals" he was seeing FSBOs offering on their condos throughout Florida. As a resident of the HurricaneSunshine State, I can tell you it's Fool's Gold. The assessments. . .it's all about the assessments. https://finance.yahoo.com/news/poison-pill-facing-florida-co...
Definitely need to be careful down here, plenty of opportunity... accompanied by even more deceptions
Property Manager · Kissimmee, FL · Member since 2019 · 445 posts · 266 votes
2y
OK...but not all condos are in high rise, waterfront properties. And not all Floridians are scam artists lol.
Here in Orlando, we definitely advise investors to proceed with caution, simply because smaller condos compete directly with hotel rooms. Pool townhomes are usually a better option. BUT, we do see some notable exceptions with condos that perform very well. This can be because of a strategic location in Orlando or in the resort community, exceptional decor and other factors. Bottom line, really do your homework before you buy an Orlando condo (but don't necessarily write off all condos in our market).
Investor · Austin, TX · Member since 2017 · 107 posts · 89 votes
2y
With condos your investment is the mercy of your HOA micro-government. No way I am dealing with that unless I can own enough of the units to essentially control the thing.
Real Estate Agent · Delray Beach, FL · Member since 2021 · 3 posts · 0 votes
2y
Thankfully, all of these grand assessments are now levied, and those selling have either paid or will pay them at closing. Doesn't stop the HOA's from increasing... I see 55+ communities near, at or above $1k/mo -- a lot of elderly residents on fixed incomes are being priced out.
Thankfully, all of these grand assessments are now levied, and those selling have either paid or will pay them at closing. Doesn't stop the HOA's from increasing... I see 55+ communities near, at or above $1k/mo -- a lot of elderly residents on fixed incomes are being priced out.
Yikes, guess this is the ugly reality of inflation.