All Forum Posts by: Chris Haas

I would ask him to identify 6% return / show you the numbers. I own 2 and I'm happy with them in that they are close to break even, (slightly under). The personal use combined with the rental income makes them worth it to us. I'm suspect of a 6% return however. Also you need to be careful where. I rented for 5-6 years before pulling the trigger just to make sure I knew what I was getting. Double / Triple check the #'s and HOA fees make sure your realtor is in the know regarding any assessments etc. I couldn't be happier with my decision just about a year ago for both, however I'm not getting 6%. If you self manage / AirBNB I see that that and maybe greater as a reality but I don't have time for that now, possibly somewhere down the line as a semi-retirement activity. Do you have specific resorts your realtor suggested?

I think the best advice I could give is rent where you are thinking of buying.  I rented in the same area 5+ years and tried different places 3 times which I didn't like near as much.  These stays in other places validated my initial instinct of buying in the same place I liked/stayed for 5+ years.  I have older posts that describe my thoughts on MB investing, which can be summed up nicely.  On face value it's not a great investment, but if you plan to use it in place of vacations AND rent it out, slightly below break even cash flow is attainable.  

Curious to hear what resorts in general you are most impressed with either based on your personal investment or your clients.  I assume you are a realtor although your profile doesn't say so.

My guess is this isn't ocean front.  Ocean front properties are closer to 55 owner, 45 management company.
If 70 goes to you, and they are doing short term rentals then this doesn't seem like a bad deal.  Now if you are looking for a year round tenant than 30 to management company seems very high to me.

Tax benefits for me, are the condos will show a paper loss because of depreciation.  This will offset some of my other income since I am self employed.  The goal of rentals isn't loss, but paper loss because of depreciation, combined with personal use, and a property manager that does all the work makes it work for me.

@Beth L. My unit's have a slice of a view, nothing I would consider a real view. Caribbean does everything and you have access to their lazy river / pools etc, if you are on the rental program. They take 45% of the gross. The high rise takes 40% but the high rise HOA is much higher although as I said it does include electric and H06 where mine do not I have to pay for that separate.

@Beth L.  1st one settled end of May, then the 2nd one settled end of June both this year.  I bought at the Chelsea House which is across the street from the Caribbean Resort on 29th Street.  I have stayed there for golf trips for 5 years, so I was very familiar with the resort and location.  It's a bit to early to tell but again, my expectation is close to break even.  If they do that I will be happy as we plan to visit a few times a year, and maybe someday be snowbirds when our children are older.  The 1st sale was an estate, so after we settled the estate listed the 2nd property.  So I wasn't really looking for a 2nd one but......it was a 1st floor and 1st floors at least at the Caribbean have higher gross rental income #'s than 2nd and 3rd so I thought the #'s looked good.   29th Street is going back from the beach inland goes directly to Broadway at the beach.  I really like the location, amenities, and staff at the Caribbean.  I had nothing but positive things to say even before we bought.

I recently used Crescom for 2 loans and they great to deal with.

I recently purchased two. My reality is (and was going in), your goal should be close to break even. If you have expectations of a great return you will likely be disappointed. I am across the street from the beach, however many ocean front have very high HOA fees. Now many of those do cover your H06 insurance, electric, water so it's more of an all in, but the fees can be $400-500 per month for a 1 bedroom, on up to $1200 for a 3 or 4 bedroom. Also the financing can be tricky as most are classified as condo-tels meaning they have a front desk and onsite property management. Just something to be aware of as you won't get a 4% loan with a condo-tel. That said, I felt for me personally the limited use of the units, the tax benefits and the rental income were enough of a combination benefit for me to pull the trigger. Best of luck.

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