Decision making and Interesting case study!

[Ramsey Doumani]

Ok Fellas I have an Interesting case!

I want to purchase a condo next to where I live. I live in estero Florida and I am planning to invest in Bonita spring or estero( which is 10 mins away). I noticed there is a lot of snowbirds in that area and I am planning to do a medium term rental. I have found two different properties. The first one in Bonita is not in a gated community, has only a pool for amenities, allows 12 leases with 14 days minimum stay, has 3 stories, low occupant rate 41%, not in a flood zone, HOA $460/months and has a reserve of 480k, has no designated parking and has 78 units. There is a SEARS assessment still in process and the condo will be due to for a milestone inspection in 12 years. I talked to the HOA president he told me they expect an increase of HOA of $23 per quarter after the SIRS assessment( 3 stories condo build in 2007). But this is not very accurate.. he even mentioned that. He confirmed that they do not expect a special assessment. I did advertise the unit on FF to see the amount of leads I can get. I had a very solid amount of tenants wanting this unit. It has a beautiful lake view. The roof was changed in 2008. It has a very good price (223k)that I can easily afford and Cashflow. However, I see a lot of red flags in that unit( milestone inspection, low occupancy rate, no designated parking). It seems like my potential tenants are not having any issue with the fact it's not gated and has only a pool . Seasonal rent( Jan-March) goes for $4000/month On the other hand I saw another condo in estero, that is gated with a man, has a pool, a small storage, a gym, basketball courts, with HOA fees of $600/month with $900 CDD yearly that allows 12 leases with minimum of 30 days, condo reserve of 500k, built in 2003. It's being sold for 255k. Seasonal rent would go for $4500 a month. The unit has a very nice lake view. I did not try to advertise it on FF but I believe it will generate good leads. It will generate less cashflow

In both cases, I believe I can live in both of those units in case I decide not to use them as rentals. I am concerned about the SIRS and milestone assessment with the Bonita unit and concerned of the high HOA fee of the second unit in estero. What would you do in my shoes?