Hi, I'm an out-of-state investor considering the purchase of a 1-bedroom condo as a BRRRR investment in the Wiggins Pass / Tamiami Trail area. The area's median rent statistics look great, especially compared to the average housing prices. And the crime score on NeighborhoodScout looks much better than other zip codes I've seen. The population seems to be growing over the long-term (20,000 people in 2010 vs 15,000 people in 2000).
My question is, is there anything I should know about this zip code as an out-of-state investor? Any "gotchas" you know about which might surprise a non-local?
A separate, more specific question- is it common for investors to buy condos which they then rent to retirees? I'm imagining that's the typical demographic of a renter in this area, is that correct or just a stereotype?
I apologize for the vague answer ahead of time but it depends. Generally speaking, there are no major concerns with the zip. No crime or anything out of the ordinary. In a lot of ways, it's quite ideal. But I would spend more time looking at the condo association and its bylaws. These, hoa's are all very different and they are going to be the biggest determinate of this investment. Also, I would recommend only looking at the rental rates and ARV's just within the community you are looking at.
That is a popular area. How much are the condo fees? What is their rental policy? Personally I don't like condos or HOA because they can change the rules anytime and kill you with fees.
@Alvin Taveras thanks for replying. It's a relief to hear about the zip, and that's good advice about the comps, I hadn't considered that. Kinda makes the process trickier, but it also makes the valuation more accurate. Condos seem like a much different beast than SFRs, to say the least.
Here's a link to the property, which I'm starting to have 2nd thoughts about. The listing seems to have some inaccuracies, since they mention HOA fees are $0. How would that even be possible, unless there's major deferred maintenance taking place in the complex? Also, the property description says "Annual Tenant-Occupied". I assume that means there's already a tenant in-place and that this listing is meant for investors (as opposed to owner-occupants), and that the lease is annual in nature. Does that sound correct?
@John Thedford yeah I'm starting to agree with you on condos. I haven't invested in one yet but I've listened to quite a few BiggerPockets podcast episodes, and Brandon Turner sounds kinda burnt out on them because they can levy assessments any time (in addition to those rule changes you mentioned). Sounds like I'm better off passing on this specific property. Thanks for your advice.
|HOA Fee:||$960 Quarterly|
|Master HOA Fee:||$0|
|Spec Assessment:||$750 Quarterly|
|Annual Food & Beverage Minimum:||$0|
|Mandatory Club Fee:||$0|
|Rec. Lease Fee:||$0|
|Total Annual Recurring Fees:||$6,840|
Yes, Per MLS: "Tenant on-site and need to coordinate 24-hours in advance".
I would always recommend working with a local real estate agent especially when doing out-of-state investments. The depth of knowledge and access to information just can't be obtained any other way. Even the most investor-friendly HOA requires a huge investment in time to learn and build the right relationships/connections. Flips are a bit easier. I hope this helps!