Orlando, FL - First Condo Purchase

[John Bastidas]

Hi I am looking at buying my first condo in Orlando, FL and the analysis I have done so far gives me a 17% Cash on Cash ROI. I am curious about insurance, does a condo HOA cover roof and outer walls? I called to get an insurance quote and they gave me one for interior and one for exterior. The difference for the yearly premium is significant and would definitely change the ROI. Any education you could pass along would be greatly appreciated.

[Kim Meredith Hampton]

John,
It all depends on the community. Typically if it is a condominium, the Association takes care of the outside. You would insure walls in.
Take for instance, I have a townhome in Windermere that I own. They pay for the exterior paint, but I take care of the roof.
Just call the HOA or COA before purchasing. I usually find that condos don’t cash flow well because of the ridiculous monthly dues and possible special assessments. Speaking of assessments; make sure that the condo or HOA are well funded and they have proper reserves for roofs, parking lots, painting etc...
In addition, make sure that there are not a lot of foreclosures still on the books