Property on a golf course with an HOA - do investors care?

Question

I'm looking at a potential wholesale deal and I had my initial conversation with the seller yesterday. She is extremely motivated to sell and wants to be out of the property by end of July at the latest. I haven't seen the house in person yet - my appointment with her is tomorrow - but I don't think it needs a ton of work.

Some details (for those of you familiar with the area):

• Located in Tequesta, FL in Martin County
• Gated community with community pool, tennis courts and clubhouse
• HOA of about ~$200 / month (not sure of any HOA rules for short term or vacation rentals)
• Backs up to a golf course
• Condition is TBD
• ARV is $350k

I have an idea of what I will offer , but my question is - would this be an attractive house for an investor if it backs up to a golf course and has an HOA? There would be instant equity for whoever buys it and I can see this as a great short term / vacation rental for the owner during season (November - May).

I look forward to all input and to hear everyone's thoughts.

Also, if you are located in Palm Beach or Martin county I would love to connect.

Ivan Vargas · Answer

Definitely make sure its not a membership required community as it will be more difficult to sell. HOA is not a bad thing, some of the best deals in Palm Beach are in a gated community with HOA. Seems like you're the investor in this case, so consider what you can get for it retail and how long it will take you to sell factoring holding costs. Some people say golf views are a plus, I see it as a negative because the broken windows are on you. I don't face the golf course yet I find golf balls in my yard all the time.

Wayne Brooks · Answer

An owner occupant would be your best exit. As for short term rentals, probably not allowed in the hoa as most have some type of rental restrictions....none for the first year, minimum 4-12 mo.s, tenant approval by the board, etc.  And of course,McNeil for mandatory golf memberships.

Ivan Vargas · Answer

@Erica Muller that is scary sorry to hear that. I only thought of the cost to replace a window and never even imagined someone let alone a child getting hurt. Glad she's ok.

Erica Muller · Answer

I second the golf ball through the window thing. When I first moved to Orlando I lived on a golf course. One day my three year old daughter and I were just standing in the living room getting ready to go somewhere and a golfball shattered the window behind her, leaving her with cuts and the ball missed her head by a few inches. I hopped the fence with my kid in hand, barefoot and literally chased the golfer down the course as I was livid. He knew what he did but didn't stop to address the damage. Turns out he was a golf professional that worked at the local course and it was his student who hit the ball but the club eventually covered the fee to replace the window. . . he didn't even ask if my kid was okay though. The golf course lot is not the dream that everyone thinks it is. It can be dangerous.

Joe Garbarczyk · Answer

Thanks for all the input - and stories! I think this is definitely an owner occupied situation and probably not an rental (either long term or short term).

I haven't seen the property yet so still a lot of unanswered questions. I'll keep you all updated.

Wayne Brooks · Answer

@Corby Goade Actually they can be a good thing.....reg.s keep the neighborhood up, no rv's, junk cars, dump trucks, landscape maintenance requirements, etc.

Corby Goade · Answer

Personally, that would be something I'd consider as a flip, but I'd never buy a property with an HOA as a buy and hold of any kind, too little control and new regulations can be implemented at any time that could significantly affect the propery.

Wayne Brooks · Answer

@Ivan Vargas Yeah, across one lot and the street doesn't necessarily keep you safe from me.  If you pm me your number I'd like meeting you out there.  I saw from another post you're using Land Design South, as far as I know the best land planning guys.

Erica Muller · Answer

Thanks @Ivan Vargas, It's definitely crazy to think about but until that moment I never realized how dangerous living on a golf course could be. Any closer and it could have possibly killed her.

Ivan Vargas · Answer

@Wayne Brooks maybe I'll come out on the course to meet you on the 4th. I find them both front and back yards I have a decorative collection. Mind you they have to fly over my neighbors and cross the street to land here, luckily we're screened in.

Property on a golf course with an HOA - do investors care?

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