I'm looking into buying my first rental property in the Daytona Beach and surrounding area and I was wondering if buying a SFH or a Condo would be a smart move for a new investor? I would look to do a AirBnB/Short Term Rental thing, if I were to get a Condo and I would look at the areas on the coast such as Daytona Beach, New Smyrna Beach, Ormond Beach, etc. I know that price has a lot to do with it, but other than that, would a condo be a lot more stressful for a new investor than a SFH would? Love to hear some thoughts and ideas.
I think SFH's and Condos both have their pros and cons. Just depends what you want to get into.
One thing I'd say to watch out for in either case if you want to do short term rentals is to make sure your property is zoned for short term rentals. Hotels successfully lobbied local governments and you cannot use your home for whatever you want (insert "thanks Obama" joke). It has to actually be permitted for short term rentals by the town (or county?).
Hope that helps.
Since you are just starting I would propose to start with a SFH. Traditionally SFHs are more stable from condos, and the hassle involved will be a lot less.
I would look for some nice houses (I have seen duplexes also) in ormond beachside. Thus you would be able to rent annually one side and try the vacation rental with the other...just throwing it out there for you to think about it.
I have an active license for Daytona area but I use it for personal use only. I live in Miami, but if you need a hook up with an agent let me know.
I definitely think that you'd be better off with a SFH. The HOA on a condo will significantly lower your rate of return.
I actually think stress-wise the condo will probably present you with less problems. You will have a building manager, maintenance guy and other owners whereas a SFH you will need to be intimately involved with all of the little details of the house lending you hands on experience, which in itself will be very valuable for you.
Best of Luck!
There's no question that SFR > Condo. HOA fees and the inability to really add value to a condo makes it not worth it. For example, in Atlanta you can buy a 2/2 condo for 200k in a decent location and then pay a mortgage of $1300 a month, plus $500-$600 a month in HOA fees... With a house, you don't have that, plus you can flip the kitchen or bathroom to add value, raise rents, cash out refinance after, etc... Don't buy a condo.
I'd have to agree with the other comments. We typically see higher returns from SFHs. The HOA fees tend to reduce returns, and we've seen more demand for SFHs.
How much were you looking to invest in the property, and what type of returns are you expecting to see?
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