All Forum Posts by: Adam Orentlicher

So generally I agree that condotel's are seldom good investments but I will say some of the ones in MB am thinking are reasonable (not great, but reasonable).  For example, at least based on my first glance, you could buy a 3 bdr 3 bath unit with a lock-out for around $400K.  A unit in 2014 that grossed approx. $60K with 12 days of personal usage by the owners.  And being managed by a major hotelier (e.g. Hilton), you get that name/reservation ability, care of the property, and being at one of the largest conference centers in the area, there is a level of business demand espc off-peak.  

You don't have to use Hilton mgmt, but it is desirable for the renter (and owner) because then you not only get the reservation ability but the renters and owners get access to the flood amenities at the property.  They take 35%, owner gets 65% (based on what I've heard).  So unless my math is way off here or their %s are off:

Income:

$60K/yr - 35% = $39K/yr or $3250/mo

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Expenses:

Mortgage (~$1400/mo @ 300K)

Taxes ($333/mo, say $4K/yr)

HOA ($850'ish/mo)

HO-6 ($50'ish/mo)

Misc (health club, phone in room, electric, $150'ish/mo avg)

Repairs ($100/mo) 

= $2833/mo

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Not the best investment (not even close to the 2% rule) but frankly it doesn't look like even close to the worst either.