Brand New Florida Panhandle Investor
Hey BP! I'm a new investor out of Navarre, FL. Last month, I retired from 24 years of active duty service in the Air Force and now I'm looking to start purchasing some rental properties between Destin and Pensacola. I was set on purchasing a 3/1 SFH in Pensacola, but I've recently been given an opportunity to purchase a condo in Destin. The condo would generate more STR income during the summer and spring break periods, but I'm not sure I want to deal with HOA. Any advice for this new investor?
Most Popular Reply
@Keith Ravenel - Welcome to investing in one of the best spots in America! As an investor, realtor, and retired fighter pilot, I'm excited to connect with you ~
When it comes to the question of whether or not to avoid condos, there is no right answer. I have both a condo and a SFR in the STR world, and both perform very well.
For condos specifically, you just have to ensure the the management and HOA provides true value to your property (like Avery was saying). Some HOA's add a ton of value, while others are fraught with issues.
Depending on your goals and requirements, sometimes that will drive you to one property type or another. For example, I have some clients whose "must have" is to be beach front, but they have a $300K budget. If those are the two variables, then the solution will be a condo in this area.
When dealing with the HOAs specifically, it's important to know the history and their planned path forward. When (if ever) was their last special assessment? What was it for? Do they have any upcoming planned projects? Are they budget appropriately? Is their a chance it'll cause an assessment? If so, it's not the end of the world -- just treat it like any other CapEx in a SFR (i.e. saving up for a new roof).
Best of luck to you!