West Palm Beach, FL · Member since 2015 · 85 posts · 4 votes
Hi all!
I received a call from someone who needs to sell a family member's condo. It has gone through probate and they are motivated. My concern is that it's a 55+ which will narrow the buying pool. Not sure there is much ability to wholesale, but I could be wrong. I'm also considering a fix and flip myself, but I have to run the numbers this evening. It looks like they sell $45-$55k at most. This one is in good shape and from what she told me will need minimal work. I still have to confirm though.
• With the snowbirds leaving and the market ever changing, what is your feelings on this type of deal?
• What is local investors' interest in flipping condos? (trying to gauge interest)
• What ROI/profit would you need from a condo?
• Is there anything in particular that I should be aware of about probate?
Rental Property Investor · Boynton Beach, FL · Member since 2014 · 273 posts · 197 votes
10y
@Martha Blumel - Best advice, do your research. Just like with your SFR I'm sure the numbers and data always push you toward a decision. I actually wish I was in your boat and had SFR, it's just a preference, but condos and townhomes have worked for me thus far.
Most important thing to me is the numbers, regardless of the property type.
I recently listed to a random real estate podcast and all the guest had was 55+ rentals in south florida and I think he was in his 30's. From what I heard in that renting them seems to be an easier avenue toward profit then flipping them.
Investor · Royal Palm Beach, FL · Member since 2013 · 162 posts · 67 votes
10y
55+ will take longer to sell, w/out a doubt. ROI is dependent upon you really. Is it a percentage or a dollar figure. 20% or $20K worth it? For me, condos are easier to work with and I like them. Others may not. I don't know about probate. I believe @Wayne Brooks may though. He reads legalise for fun :-)
Rental Property Investor · Boynton Beach, FL · Member since 2014 · 273 posts · 197 votes
10y
@Martha Blumel - Best advice, do your research. Just like with your SFR I'm sure the numbers and data always push you toward a decision. I actually wish I was in your boat and had SFR, it's just a preference, but condos and townhomes have worked for me thus far.
Most important thing to me is the numbers, regardless of the property type.
I recently listed to a random real estate podcast and all the guest had was 55+ rentals in south florida and I think he was in his 30's. From what I heard in that renting them seems to be an easier avenue toward profit then flipping them.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
10y
I have no dislike for 55+ at all. It's just about the numbers, same as any other. For rentals, I think that class tenant is likely more stable than the average. Make sure when doing comps though, you pay close attention to the updates to the comps verses your condo. If there's no elevator, stay away from second and third floor units.
Rental Property Investor · Boynton Beach, FL · Member since 2014 · 273 posts · 197 votes
10y
I've never flipped or wholesaled. Only buy, fix, rent, hold. There is an older gentlemen that flips 55+ condos that has come to a few of our meetups, think he's a realtor as well. Cannot recall his name though. Ask Jon on Saturday, he'll probably remember
Flipper/Rehabber · IA · Member since 2015 · 157 posts · 35 votes
10y
I am familiar with the 55+ condos in South Florida, closing on one April 20th and getting another one ready to go for rent. @Martha Blumel can you give the community or city it's located in? I buy and hold but I have seen people flip especially if they get them in a foreclosure or estate sale. These condos can sell fast if its the right area and moderately updated. Most of them are purchased cash. The biggest issue with these and other non 55+ condos is the restrictions. Usually have to own for 1-2 years before you can rent it out, no pets, no trucks and the age restriction of course. Also, if the buyer is financing that may be an issue depending if the Condo Association has 10% in reserves or not. That will change the buyers financing. I can also tell you, contact the Association or a local realtor that deals exclusively with that community if you are not familiar with it. Most of them use the same realtor who will be very familiar with the details and restrictions of that community. Good Luck!
Investor · Juno Beach, FL · Member since 2015 · 66 posts · 21 votes
10y
@Mitchell Jaworski pretty sure you're talking about Richard Kerski. He has experience with 55+ flips and seems to be doing well with them. Not connected with him so I can't @ him to the thread.
Investor · Boca Raton, FL · Member since 2015 · 58 posts · 20 votes
10y
I'd be happy to look at this property and I buy 55+ condos. In this market you should expect to add a few months to hold since the season is at an end. Additionally the 70% rule is weak, so figure 75% or AVR, and if you expect a 15% ROI you are doing pretty good. I just finished one in Delray Beach 55+, 1335 Sq Ft, bought it for $60K, and it is currently listed for $134,900. It took me 6 weeks from close date to ready to market. I will be out of town until 4/14/16, but would be interested in seeing the property if you wish to sell. I don't buy and hold, anymore. Renting in 55+ communities is getting more difficult and the Associations don't like tenants. They just raised the hold time to 2 years in this community.
West Palm Beach, FL · Member since 2015 · 85 posts · 4 votes
10y
Thanks everyone for your feedback. The Condo is in Lakeside Village in Palm Springs. After speaking with her further I am not sure there is going to be enough spread with the past due HOA fees. She has an agreement with the HOA to not foreclose, but they are going to want to be caught up on the sale of the unit. I have been talking with her daily, but she is up north on a family emergency.
The comps seem to be around $50k. Although there is one pending for $78,900 only after 18 DOM. The bathrooms and tile throughout have all been updated, except the kitchen puzzles me (see the attached pic).This pending listing is in an all ages building, so it obviously will go faster. I should be able to get in to see the condo I am working on in the next few days and I still need to talk to the HOA to find out their restrictions.
I'd be happy to look at this property and I buy 55+ condos. In this market you should expect to add a few months to hold since the season is at an end. Additionally the 70% rule is weak, so figure 75% or AVR, and if you expect a 15% ROI you are doing pretty good. I just finished one in Delray Beach 55+, 1335 Sq Ft, bought it for $60K, and it is currently listed for $134,900. It took me 6 weeks from close date to ready to market. I will be out of town until 4/14/16, but would be interested in seeing the property if you wish to sell. I don't buy and hold, anymore. Renting in 55+ communities is getting more difficult and the Associations don't like tenants. They just raised the hold time to 2 years in this community.