Real Estate Agent · NV · Member since 2023 · 1k+ posts · 715 votes
I've talked to a few people about the pros and cons of 55+ communities with SFH. The tenants generally are easier on the properties but also can have higher HOA's. Do you have to be 55+ to buy or only reside? What is the BP communities' experience with this type of asset? Any pitfalls to avoid or horror stories?
I've talked to a few people about the pros and cons of 55+ communities with SFH. The tenants generally are easier on the properties but also can have higher HOA's. Do you have to be 55+ to buy or only reside? What is the BP communities' experience with this type of asset? Any pitfalls to avoid or horror stories?
I bought a property in Sun City AZ, a 55+ community. The seller, 94 years old, didn't mention the community has a $4,400 transfer fee, (probably honestly didn't remember), so we had a little go around about that.
Anyone I rent to has to be 55+ which limits the pool of renters.
The restirctions are, that one of the residents has to be 55+ and I think none can be under 18. Guests can stay a maximum of 14 days. There is no school system. Motorcycles (even tri-cycle Harleys) are very popular in AZ, so there are lots of Harleys which can make a little noise. Peopel drive their Golf Carts to the grocery store.
Landscaping is limited to what is allowed, mostly desert foliage and grass. We have lots of Palm trees and Saguaro Cactus and Citrus (Grape Fruit, Oranges, Lemons) & succulents. It’s well maintained, quiet except for the Harleys, has a lot of activities and lakes and golf and is an "active" 55+ community.
Since it's a tightly controlled HOA, curb appeal is important & they enforce it.
Other than not being able to market to the under 55+ crowd, I have no complaints.
The age group seems to be more responsible, doesn’t cause the problems I caused back in college. ;-)
Real Estate Agent · NV · Member since 2023 · 1k+ posts · 715 votes
3y
The HOA in any neighborhood can be restrictive and expensive which have their own pros/cons. It seems like they would have to be underwritten on an individual basis and ones own personal goals taken into account.
Real Estate Agent · Puyallup, WA · Member since 2022 · 551 posts · 379 votes
3y
This is me speaking for my area and what I usually see in 55+ communities.
The majority of 55+ properties that I see are usually manufactured. Well kept, but manufactured nonetheless. In my opinion, I cannot rely on manufactures appreciating like a stick built over time. Could they see massive amounts of appreciation over a 20+ year buy and hold? I really cannot say with certainty that they can BUT that doesn't mean they can't.
I am just not huge in manufactured homes for investments. Once again, this is for my area but that is my two cents for you to take with a grain of salt.