All Forum Posts by: Stephen Gathman

Yes, the ownership is very stable, of the 150 units, there is onley one delinquent.

The engineers have taken a look at the guts of the buildings by taking cutouts. I do have the engineering reports.

We were compelled by the location, beach, amenities and the price. We are not prepared to spend a ton of money on a condo, as this would be our 3rd home. We just though that, with such a low price, and even if having to pay $50k over several years in assessments, we will still end up with a totally updated villa, both structurally and aesthetically in a great location steps from the beach.

If we rent it 3-4 mos. per year at $2500 per month, that puts a dent in the cost, while we can use it the rest of the year.

Concerning appreciation, is it unrealistic to look at prices at the real estate peak of $225k plus, and expect to get substantial growth maybe to $185k or so over several years?

Thank you for the input. We are definietely planning on using the unit personally quite a bit off of the high season of Jan-April, as we live 60 miles away.

We currently have a renter in line for the $2500 per month for March and April 2013.
I am prepared for the negative cash flow, with maybe the $8-10k in rent per year to offest some.

I don't know if this changes the equation. HOA fees cover everything except telephone, contents insurance coverage.

I was figuring that the appreciation potential from these levels of a renovated unit in a complex with good amenities on a prized beach area would be substantial.

The HOA fees have been stable and they are looking for ways to reduce them.

Thanks

Hello- I have an accepted offer in, with 15 days to review HOA books and records. Any input on this deal would be appreciated.

It is a villa in a condo development of 150 units in Longboat Key, FL. It is directly accross the street from the gulf. The complex was built in 1974, consists of 5 midrise 3 story condo structures and 9 villa buildings with 3-4 units per. The property has good amenities- 2 pools, tennis courts, boat slips on the bay side, excercise room, etc. Large well landscaped property. Tight HOA restrictions, well kept, only monthly or longer rentals, limit two tenants per year.

The unit is a 1 BR 1 BA end unit, closest to the road and beach 800 sq. ft., 120 sq. ft lanai. It is fully furnished and in excellent condition. Recently redone kitchen with granite, carport, washer/dryer in utility room. Rents typically $2500 during high season. We are looking to rent it high season only. Price $75,000. Asking price was $99,900. Seller paid $82k in April 2012. Property is assessed for taxes at $122k, taxes $2100.

Where it gets complicated is with the HOA fees and special assessment. HOA fee is $653 monthly, which includes $100 reserve. Cable, insurance, water, trash, pest control, etc. are included. This is about $100 higher than a lot of units on the island.

Identical units in the complex sold for as high as $245k before the crash.

The complex is undergoing renovations. Two of the villa buildings have been done at a cost of about $650k per- new stucco, roofs, windows, replace damaged wood, drywall, barrell tile roof trim, landscaping. The results look very good.

When this building is done, we have the option of retaning the slab only of the lanai as a patio or having the lanai rebuit as part of the regular a/c living space at our expense $12-15k. We could then maybe convert it to 2 BR 2 BA.

The midrises, although looking good on outside, have water intrusion issues on bay side from windows, etc. A recent engineering report was done showing this and some support and horizontal structure damage over the years, also. One of the buildings has already had some window replacement and stucco replacement.The HOA is currently evaluating the reports and figuring how to tackle the issues. It has not yet been determined if all issues presented will be repaired and when, nor has a dollar cost for the proposed repairs been issued.It is common for structures this old on the island to have issues.

There is a current annual special assessement for 2013 of $4200, paid in monthly installments. The same assessment was levied last year. The HOA has a history of generating no huge lump sum assessments, mostly pay as you go.

One last wrinkle, an end unit on opposite end of same building sold through foreclosure in 2012 unfurnished for $57k, no side yard, next to encased dumpster. Had sloping floor, unsure if any other issues.

Is this a great deal or not? The big risk seems to be the certain special assessments continuing. The realtor says to plan on the $4200 for 4-5 years. We are reviewing the midrise engineering reports, already have villa reports to try to put a number to worst case total complex repair costs.

The upsides include-

-potential substantial price appreciation. Longboat Key is very desireable.
- refurbished villa should be worth more, certainly look better.
-potential to convert to 2RB, 2 BA during refurbishing.
- rental income potential of approx. $10k per yr. to offset costs.

Downsides-

-unknown extent of repairs and costs.
-high HOA fees.
- unit is closest to beach, but also closest to Gulf of Mexico Dr. roadnoise that is busy during high season.

Thank you for any input and endurring this short novel.

It looks like we are closing. So far, I am very impressed with BOA. Offer in on April 12, close this Friday. Will keep our fingers crossed.
Thanks again.

Thanks, guys. We will try to get the extension.

Thank you, Steve. Georgia law apparently has only a $500 penalty, which doesn't have much teeth and means nothing to a large bank.
I am not sure if they closed the line. Will find out.

Do you know if it is a problem with a short sale to extend the closing date if they are expecting a close Friday and that date is stated in the contract?
Thanks

We are supposed to close on purchasing a BOA short sale this Friday, and the title search just revealed that the sellers has a HELOC also with BOA that they paid off one year ago. However, BOA never sent a satisfaction of lein nad my lender won't close without it.
BOA says it will take up to 30-60 days to prepare and send one. The listing agent is trying to get the contact person at BOA to get it done, but all we have heard is that she will get back to the agent.

The HELOC is definitely paid off, so they should be able to produce something.

Any ideas on how to get this done in time?

Also, Georgia allows for up to a 7 day extension in closing. Does extending the closing date usually cause any problems?

What if they don't get it within the 7 days, is the deal dead? What could be done to preserve it?

Thank you for any input.

We have a short sale that is scheduled to close on May 28th.
We just had the 20 year old home inspected and the AC and furnace are not working.
The seller had a repair guy there when the inspector was and they are getting parts to fix them. The systems look to be original equipment.

Also, the water pressure is kind of low. It is on a well. You wouldn't easily be able to take a shower and use other significant water sources simultaneously.

What kind of leverage, if any, do we have in this short sale to make sure these things are fixed and in good repair prior to closing?

Can we force the bank (BOA), seller or maybe even realtor to get them right for us? The seller knows people who can repair, but doesn't have a ton of money anyway.

Thanks

Thanks again. How do I insert a negotiator into this situation, and what can they do to make the deal more likely to close when we are working with BOA and Equator?
I can be reached at [PHONE NUMBER REMOVED]

Thanks. How do you get a negotiator involved in the process where you have 2 real estate agents already in on it? Can a negotiator even get anything done when you are dealing with B of A and equator?