Condo-Hotel vs Condo Numbers Check
I had a previous post where I was looking for a 3BR place <$300K near the theme parks in Orlando. I'll be honest, my searches have been a little disappointing to find anything that will break even in terms of cash flow.
I came across a couple condo-hotel locations and looked into them. I've done a lot of research on the topic and am familiar with the cons of owning a condo-hotel type unit, but the numbers seem way in favor of that vs a more traditional condo or SFH. At least in my price range. Here are some numbers I crunched and my reasoning behind them:
3BR Condo in Windsor Hills ~$459K
~$38K projected STR income.
$365K mortgage at 7.5% - $2,550/Mo
HOA - $460/Mo
Taxes - $306/Mo
Insurance - $200/Mo?
Utilities - $250/Mo?
Misc (repairs, furnishings, etc) - $200/Mo?
So with that, I'm looking at putting out about $3,966 and bringing in $3,166, and that's if I self-manage. Does this all look right, or is there anything I'm missing? Just looking at this purely from a cash flow standpoint, I'm at -$800 to -$1,450 per month.
Condo-Hotel, Using WorldQuest as an example -~$260K
$180K HEL at 9% - $1,450/Mo
HOA - $550/Mo
Taxes - $166/Mo
Insurance - $200/Mo?
Utilities (only power paid by owner) - $120/Mo?
Misc - $200/Mo?
The income on this one is a little confusing, but from what I can gather, WorldQuest has a yearly average nightly rate of about $220 and they claim about 85% occupancy. They take 40% as a management fee and charge $30/cleaning. To be conservative, I'm rounding down occupancy to 70%, which for 3 cleanings per month, would mean rental income would be ($220*365*.7*.6)-($30*3*12) for a monthly income of $2,720. So this scenario is just about a break even, about a $40/month gain.
I realize the WH property is also more likely to appreciate than the WorldQuest property, but the rest of the numbers really seem to be heavily in favor of the condo-hotel type property. I'd love it if some of you much smarter people could look at my analysis and see if I'm missing anything? If I assume NO property value change, in 30 years, the WH property will have turned $383K (down payment plus $800 monthly negative loss of running the property) into $459K. The WorldQuest property will have turned $80K into $274K (price of unit plus $40 monthly gain).