Hi! So I wanted to see what you all think about investing in a CondoHotel. I know that the killer is the HOA fees, but I am back and forth in my head about if it is worth it. The unit will be in a popular part of Orlando FL and I think the unit will do well but some people have told me to be weary of the management as they will not rent your unit out as much? Any insight will be helpful. Thank you!
Hi @Kristie Gautier , Those are still pretty new so I personally don't have any experience with them other than the warnings you have been cautioned about. They are also very difficult to get financed from what my lenders tell me. There is just so much competition in small units like that.
We have had timeshares here forever, then condos, then townhomes, then the vacation home market in the last 15 years has changed the way people look at units here. It used to be a second/vacation home that people would use, then builders started building communities driven by amenities and now those communities are full of small businesses. But with the condo/hotel and timeshares, there are just so many of them and not only them, but actual hotels and they are all competing with each other and there is only so much you can charge for a small unit and you can't really differentiate it from other units. That is why I like single family units, you can theme them, max them out with game rooms, pool etc and accommodate larger groups...these are just my opinions and there are obviously people making money with them, but seems too much risk for the reward.
Happy to talk through some options or anything that may help you, just reach out.