Updated 10 months ago on . Most recent reply
Investing in a condo vs townhouse as a traveler
Hello Everyone! I am a traveler therapist. I live and work 3 months in Florida fort Myers/Bonita spring area and travel for work 9 months out of state. I am looking forward to buy my first condo or a town house in fort Myers/ Bonita spring area and would like to rent it out when I am not in the states. I would like some honest opinions/ experiences from everyone about my crazy plan!
1) I am wondering if it's doable to manage a condo/town house with tenants when I am out of state seasonal 9 months per year. I have good friends and a handy man that I can rely in Fort Myers/Bonita spring area when I am away and I will be able to rent out the entire unit seasonal for snowbirds. However, I don't know from a practical point of view if it's doable
2) Condo vs townhouse vs cashflow: I noticed condos and townhouses are way cheaper in fort myers FL ( however risk of hurricanes) and maybe more opportunity for cash flow. Bonita spring way more expensive but less chance of hurricanes( from the last 30 years ) and less opportunity to cashflow. Anyone can give me their experience in renting out condos/townhouse in Fort myers vs Bonita spring in FL and what they would do if they were in my position?
Most Popular Reply
Ramsey, your game plan seems like a great idea. The fear of renting while out of town is common, but it's easy to overcome, especially when you have friends and a handyman. Many of my customers who are traveling nurses buy condos or townhomes in Florida as vacation homes, then rent them out when they're not in town.
This system has proven to be very lucrative, as it allows them to service the mortgage debt and generate a good cash flow. Florida properties will continue to appreciate in value since it's an amenity-rich state. Contrary to popular belief, major hurricanes are not as common as some think - as someone who's lived in St. Petersburg for over 30 years, I can attest that the last two big hurricanes caused significant damage, but they were the first in a long time.
Condos and townhomes tend to perform well, especially if they're located on the Intracoastal Waterway or within 3-5 miles of the beaches. The only thing I would advise is to keep a close eye on the HOA fees, as that's where the cash flow can get squeezed. You need to evaluate the HOA and its management, with a focus on the reserve account percentages. Also, watch out for any litigation or construction issues that could lead to HOA fee increases down the road.
Alternatively, you could consider a good deal on a single-family home or a 2-4 unit property. Without an HOA, and with more doors, you'll likely see a higher monthly cash flow.