Quote from @Alex Giassa:
Quote from @Caroline Gerardo:
Things about condos to consider: HOA fee always goes up and has special assessments so you need reserve funds. STR can be banned. A building with to high STR non owner occupancy doesn't appreciate as buyers cannot get conventional or jumbo financing in the future. Getting HO6 insurance and a decent priced master policy is an ongoing mess.
Miami Beach is my vote for long term value.
Yes, to @Caroline Gerardo 's point - there are condo and condotel options. Condotels are getting easier to finance, however, not as easy as a condo.
Currently, there are projects with HOA from $1.00 to under $2.00. In some cases, reserves are included in the HOA.
You both are correct. I'm a lender in Miami and we use non-QM loan products to finance condotels and non-warrantable condos. Yes, the interest rate is higher than a conventional product but surprisingly not by much. The typical LTV is 70-80% for these types of loans. Usually, for these types of projects you cannot go with conventional financing. Fannie Mae or Freddie Mac won't touch them.
Many buildings allow STR because they realize there are a lot of out-of-state and foreign national buyers wanting to place their money in the Miami real estate market because it is such a good investment. There are a good amount that allow for mid-term rentals (e.g. two rentals per year). Make sure your Realtor does his/her homework to find you the property that is right for your investing needs.
