alxrodz 0 Report post Posted January 10, 2011 As you know, Florida is filled to the brim with condos. Are these a good type of property to target? I would think not many people are out to buy them, but for the type of arrangement (lease purchase) and the lower property values, I'd think there could be a good pool of interested potential T/B's. Any experiences anyone can share? Share this post Link to post Share on other sites
pilot76180 51 Report post Posted January 10, 2011 I think it all has to do with where you are. For example, here, in the DFW area, I don't have luck with condos, townhouses, garden homes etc. Sure, I've done them, but it was more difficult. Most every person that comes to me is a small family, with 1.5 kids, and looking for a house.However, that's mostly what we have here, is houses. In other areas, if condos are the rage, then I'd go for it, and see what happens. Here, condos are purchased by single people with no desire to own a house, or retired people. So it limits the pool. But it may be different in your area. I will say though, that one issue I've faced with condos or townhouses, is the HOA fees. I try to set the monthly payment to be close to what the mtg will be. so let's say you have a $120,000 condo..OK, the payments will be $1095 or so. BUT, the HOA fees may be $350 a month!! so Now we're up to $1500 or so. Well, for $1500, they might be able to get a 2500 sf house with a yard or maybe even a house with a pool. How do you compete with that? Share this post Link to post Share on other sites
lhenley 8 Report post Posted January 10, 2011 My parents used to own a condo here on the gulf coast. They sold it when the HOA fees went to $1,000 per month. Lynn (FL) Share this post Link to post Share on other sites
MichaelC 160 Report post Posted January 10, 2011 As you know, Florida is filled to the brim with condos. Are these a good type of property to target? I would think not many people are out to buy them, but for the type of arrangement (lease purchase) and the lower property values, I'd think there could be a good pool of interested potential T/B's. Any experiences anyone can share?You're correct. FL is saturated with condos, now more than ever. What pilot just said pretty much sums it up, in my opinion. In addition to the hefty HOA fees, there are also the Condo Commandos that need to be dealt with. They can be a pain in the ass, to put it bluntly. In fact, here is a local newspaper article from this past Friday: http://www.sun-sentinel.com/business/fl-ho...0,1256779.storyI wouldn't target condos, but if a deal comes along where the numbers work, the condo board's restrictions don't choke you, and the folks you have to deal with are reasonable, give it shot. The great thing about CA's is that they are risk free but for some marketing dollars and your time. Share this post Link to post Share on other sites
alxrodz 0 Report post Posted January 10, 2011 Thanks all, this is very helpful advice! Sort of on the subject, today I spoke to a condo owner who has not been making payments on the house (so it wouldn't work for our thing), but she told me that the bank doesn't want to take possession of the property, nor remove her name from the lien or title, so she's left in total limbo. But if the bank doesn't even want these properties, that's gotta tell you something about their real value, eh? Share this post Link to post Share on other sites
lhenley 8 Report post Posted January 10, 2011 The way I understand it, if a bank takes over, THEY are responsible for paying the HOA fees. Lynn (FL) Share this post Link to post Share on other sites
MichaelC 160 Report post Posted January 10, 2011 I was speaking with a friend yesterday who works in a lawyer's office, handling bankruptcies and foreclosures. He was telling me the same thing. They have clients who haven't made a mortgage payment in 18 months. Yet, the banks are calling and telling them to stay in the property in the meantime. The bank would rather not have the additional properties on their already long list of bad loans, not to mention the expense of upkeep. I always thought "America, Land of the Free" was referring to personal liberty, not housing. Share this post Link to post Share on other sites
randian 0 Report post Posted January 10, 2011 The way I understand it, if a bank takes over, THEY are responsible for paying the HOA fees.In some states HOA fees, like property taxes, come before the first mortgage if the HOA docs so provide. They could be responsible whether or not they foreclose. Share this post Link to post Share on other sites
pilot76180 51 Report post Posted January 10, 2011 Sounds like I should get about 10 condos in FL and rent them out, all while not making payments. HOA's in TX can be rough. Last year there was a local guy that owned a complex, lived there, and foreclosed on any unit he wanted so he could expand his own..He's in jail now I believe. Share this post Link to post Share on other sites
