Tampa, FL · Member since 2018 · 42 posts · 9 votes
Hello everyone,
I'm thinking about buying some condos or multifamily properties here in the Tampa FL area by taking advantage of how good deals are going to be here in a couple months, but I'm not sure if people are going to be able to actually pay their rent. Any suggestions?? Thanks in advance.
I'm a big condo fan, but what's going on with buying opportunity and condo you must tread very lightly. To get a conforming loan on a condo, the condo needs to be approved by Fannie Mae. In order for a condo to be approved, it must pass a lender condo questionnaire to qualify it. One of those requirements is low delinquency rates. Condos may drop in price and be really affordable, however, that may be because there's an issue with the HOA, and assessment has gone out all sprung from the HOA not being able to afford it's budget because 30% of the owners have stopped paying their HOA fees. It's a butterfly effect.
I recommend going with smaller and easy to manage properties. Townhouses can be a good option where there's still low maintenance, but a lower chance to get an assessment.
Hey Steven, am currently analyzing several deals in the Tampa area and while that's a real consideration, mitigate it by building in the necessary buffers. Besides the due diligence for MF is far more thorough, and you'll spot that situation.
You could be missing out on a great deal right now, while trying to time the market. Also worth considering is cashflow is defense against market dips.
Do you already have some rentals in the area?
Disclaimer: 🙋♂️ am a carrying member of the glass half full club.
I'm a big condo fan, but what's going on with buying opportunity and condo you must tread very lightly. To get a conforming loan on a condo, the condo needs to be approved by Fannie Mae. In order for a condo to be approved, it must pass a lender condo questionnaire to qualify it. One of those requirements is low delinquency rates. Condos may drop in price and be really affordable, however, that may be because there's an issue with the HOA, and assessment has gone out all sprung from the HOA not being able to afford it's budget because 30% of the owners have stopped paying their HOA fees. It's a butterfly effect.
I recommend going with smaller and easy to manage properties. Townhouses can be a good option where there's still low maintenance, but a lower chance to get an assessment.
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