Investor 路 Thousand Oaks, CA 路 Member since 2016 路 44 posts 路 17 votes
I m primarily a SFR investor and stumbled upon Condotel in Orlando, 5 mins to Disney. It is a new construction condos next to Margaritaville. The breakeven is at 60% occupancy. Trying to learn more about this investment strategy, mainly any pitfalls I should be aware of. Purely looking from an investment standpoint and not planning to use it for vacation purposes any time soon.
Congrats on wading into the STR water. Couple questions to consider: The breakeven at 60% occupancy - at what average ADR? Does that take seasons into account? the good (xmas/july) and the bad (Sept)? Have u spoke to the HOA/on site PM? If you are, are you comfortable with their rules, minimums, regulations and limitations (if there are any).
Tax remittance in Osceola county, are you comfortable and familiar with them and their process? Does the HOA have a CDDN fee? How does the condo work the improvements? Can u use own vendors?
Just a couple to consider. Very familiar with M'ville and their limitations. And most condotels are the similar but not all. GO GET EM! 馃榿
Congrats on wading into the STR water. Couple questions to consider: The breakeven at 60% occupancy - at what average ADR? Does that take seasons into account? the good (xmas/july) and the bad (Sept)? Have u spoke to the HOA/on site PM? If you are, are you comfortable with their rules, minimums, regulations and limitations (if there are any).
Tax remittance in Osceola county, are you comfortable and familiar with them and their process? Does the HOA have a CDDN fee? How does the condo work the improvements? Can u use own vendors?
Just a couple to consider. Very familiar with M'ville and their limitations. And most condotels are the similar but not all. GO GET EM! 馃榿
Jay, Thanks for your reply. Would you be a little clear on your recommendation.. is it a good investment ?
I reached out Condo Hotel Center Broker and all I could get were standard answers without any sample proforma detailing Occupancy rates, ADR, HOA details. I think without those details, I would not feel comfortable to proceed.
@Raj Konda did you get any financial details from the broker - who is marketing the Condo Hotel Center at Sunset Walk? Please share.
I recently came across these as well. I think they *could* be a great investment if it is something you might also use and year or two for a family vacation. It would likely pay for itself and maybe even slowly pay back your down payment while hopefully retaining value. Very similar to something like Margaritaville or The Grove here in Winter Garden. As a pure investment, I think there are just too many variables. A short term rental that you control yourself will be much more consistent I would guess and of course normal long term rental SFR would be even more so.
One thing I would suggest, though, is if you're going to do this, pull the trigger now. The developer will always raise prices as they build out so if you get in early you can at least get some equity built in should you decide to exit the property later. Best of luck!
Thanks Jay for the reply. You brought up several things I did not check - tax for this county, CDDN fees etc. own vendors is a big no no and maintenance is in-house, so owners have little to no control.
Congrats on wading into the STR water. Couple questions to consider: The breakeven at 60% occupancy - at what average ADR? Does that take seasons into account? the good (xmas/july) and the bad (Sept)? Have u spoke to the HOA/on site PM? If you are, are you comfortable with their rules, minimums, regulations and limitations (if there are any).
Tax remittance in Osceola county, are you comfortable and familiar with them and their process? Does the HOA have a CDDN fee? How does the condo work the improvements? Can u use own vendors?
Just a couple to consider. Very familiar with M'ville and their limitations. And most condotels are the similar but not all. GO GET EM! 馃榿
Hi @Sastry Srini, i have not dealt with condo central yet, will dm the team Who shared info so far. Did you had prior experience in condotels or this will be first?
Thanks @Judson Osbon for the reply. You are right on the STR with control over your property, this is more passive than I鈥檓 used to. Prices went crazy since margaritaville was opened, I guess that鈥檚 true for most mrkts in FL, lol. I m hoping to find someone here who had actual experience with these condotels as the numbers on paper make sense but dreading the unknowns
I recently came across these as well. I think they *could* be a great investment if it is something you might also use and year or two for a family vacation. It would likely pay for itself and maybe even slowly pay back your down payment while hopefully retaining value. Very similar to something like Margaritaville or The Grove here in Winter Garden. As a pure investment, I think there are just too many variables. A short term rental that you control yourself will be much more consistent I would guess and of course normal long term rental SFR would be even more so.
One thing I would suggest, though, is if you're going to do this, pull the trigger now. The developer will always raise prices as they build out so if you get in early you can at least get some equity built in should you decide to exit the property later. Best of luck!
Hi @Sastry Srini, i have not dealt with condo central yet, will dm the team Who shared info so far. Did you had prior experience in condotels or this will be first?
No.. I don't have prior investment experience in condotel model, but have a short term rental in St.Augustine. I will be interested to learn more about this model and hear other BP'ers perspective who owns one or have done some analysis. Thanks!
I would never advise wether something would be a good investment or not without significantly more data. We don't even have an address or HOA. The grove has a 49% management fee for instance. Versus we are 15% and cannot manage in the grove. need way more data and dialogue to make a recommendation and even then, I would only advise u by running a revenue projection and THEN you could build out a proforma from there. Not every property in orlando/kissimmee/davenport is a winner, and now with property prices they way they are - you MUST do much more due diligence to hit a home run.
I m primarily a SFR investor and stumbled upon Condotel in Orlando, 5 mins to Disney. It is a new construction condos next to Margaritaville. The breakeven is at 60% occupancy. Trying to learn more about this investment strategy, mainly any pitfalls I should be aware of. Purely looking from an investment standpoint and not planning to use it for vacation purposes any time soon.
Appreciate your feedback/experiences.
Condotels are a mixed bag. Im not a fan of a property that doesn't let you pick your own management company. You are at their mercy if they don't perform well or they raise their prices. With that being said, if the management company has a name-brand hotel running it, you can do well. I believe the way to excel at STR is to make your property special through decor and cosmetic upgrades. That's typically not allowed in a Condotel. I have been selling STR in Central Florida since 2005 and know most of the communities well. I would only endorse a few condotels. PM me if you have any further questions.