Invest in Vegas Condo-tel a good idea?

Question

I am looking at a condo-hotel investment opportunity in Las Vegas. A condo also is part of a famous hotel in Vegas sold for over 400k in 2005, now it's only 200k. It has been involved in the hotel rental program. ( if you don't use it, hotel can rent it out and split profit w you 50%). Including booking cleaning etc. HOA covers all utilities .

What are the pros and cons in this concept? Anybody has experiences in owing these Condo-tel properties?

Thank you!

What are the pros and cons in this concept?  Anybody has experiences in owing these Condo-tel properties?

Thank you!

Michael Thach · Answer

I have a friend owning a studio at Palm Place. Is pretty dead at the moment. At better times is about little better than breakeven but this was with 33% fees I think. With 50% this won't make much sense. HOA are like 500-700ish. Now there are also no conventions in Vegas !

Aaron B. · Answer

I wouldn't do it. The numbers don't make sense. The few people I know that have tried this in Las Vegas in the last 10-years don't have good stories to tell.

Sammie Xiao · Answer

@Michael Robbins thank you very much for your info.

Michael Robbins · Answer

@Sammie Xiao I have analyzed different condo-tel options here in Vegas with a few different investors.  So far we have not come to the conclusion that is makes financial sense as a strict rental property.  However, if one were to use the condo-tel as a vacation home (visiting Vegas often) then that changes the equation a bit.

Stephen E. · Answer

I wonder if it's a terrible time to buy a condo-tel, or a great time because it's a terrible time?

Lien Vuong · Answer

Thats basically 50% property management fee. That's an absurd amount for a unit that has depreciated also. I would check the sale clauses also.

David Avery · Answer

I always think that Management would be your biggest concern!!

Bill B. · Answer

Some condotels (like the platinum in specific) will double the Hoa if you use it more than a couple weeks per year rent it out without them too much. It’s a great deal for the hotel operator. You buy the hotel, you cover all the costs, and they take 1/2 the income. (  I had 1/2 the profit, but they take 1/2 the income, way more than 1/2 the profit.)

The biggest financial save I’ve made in not buying a million dollar mgm condo in their rental system right before the crash. Luckily I was bothered by little things like cleaning service not being included in the $1200/mo Hoa. And being told I had access to “all the casinos amenities...” as a benefit.

I’m sure people have made money on the condo only version (not condotel) but with very high fees it’s a little riskier than than houses or even small multis. The only way I would consider it if would be fi you had some 1032 funds to rollover and planned to turn it in to your new primary in a few years. Then I’d look at a straight condo.

Invest in Vegas Condo-tel a good idea?

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