To Sell or Rent a Condo in 55+

[Meaghan Lugo]

My husband and I will be taking my in-laws into our home due to health issues. They have a paid off Condo (1/1.5) in a 55+ community, not the most desirable area so worth approximately $100-115k. We will need to mortgage the condo or sell it in order to outfit our home (and my brother-in-laws home) for my in-laws to live privately and comfortably. What would you do? Facts to consider: The condo is in my husbands name, has been for about 5 years so the capital gains taxes would be ours to pay upon sale. Property Taxes $1200 annually which we've been paying. HOA $325 monthly. Conservatively, rent would be about $1000-1200 monthly based on our research. We do have 4 other properties we rent with significant equity so using equity from one of those is on the table as well. This would allow us to just rent the condo without placing any financing on it, or to 1031 the funds from the sale of the condo and still have the needed funds to complete the work on our homes to accommodate them. Lastly, our DTI is maxed out per every lender we've spoken to recently as all the properties are mortgaged in our personal name. So we'd be looking at DSCR or other funding that doesn't consider our personal DTI. Ideas? What are we not thinking about? Thanks in advance.

[Joe Morello]

Getting financing on condos in general these days is nearly impossible, let alone a 55+ condo. And selling it will be challenging as well as the 55+ condo market is flooded here in South FL. Tons of competition. That said, I think renting it out is your best option. You should always have a tenant as you're not only serving the 55 and over community (which will continue to grow), but the lower income demographic as well, which is needed. Just be aware of potential special assessments that may be in the works or could potentially come about, and factor in continued increases to the monthly COA fee. So, give yourself enough room to cover future increases with how much rent you charge.