Investing in Condotels. Good or bad Investment???
I’ve been coming across some condos in tourist type areas that you can purchase as a condo but can be put on a rental program to be rented out when it’s not being used by the owner. The term I’m seeing a condotel. A condo hotel hybrid 1 may say. The ones I’ve seen are more like nice hotel rooms more than a condo but that’s a different story. My question to forum members is has anyone ever heard of these types of properties being a good investment? The upfront cost doesn’t appear to be to high but the monthly maintenance fees that I’ve seen look like they would kill the monthly cash flow. I’ve seen between $500 - $600 per month. If you can get $100+ per night that might work but if the hotel front desk rents it out I think in most cases it’s a 50/50 split. With that you would need to rent 10 to 12 nights just to break even. I know location will play a big part on % of occupancy but I’d like to hear people’s experiences with condotels if anyone has any or know someone that does. Thanks in advance for any info people can provide.
