Condo Hotel Advice~Sunny Isles Real Estate 'Marco Polo Beach Resort'

Aventura Beach Club 1106In reviewing an excellent condo hotel deal of Sunny Isles real estate (Click Here for Property) with a customer, I decided to relay the answer here on the MiamiBeachRealEstateBlog.us…

The maximum residency in a condo hotel (zoning) is 6 months. With the typical financing at 20 to 30% down, income MAY cover costs. The rental income through Ramada management is a good way to offset taxes and maintenance fees with a small portion of principal. Through owner management or property management outside of Ramada, net income could be slightly higher as the current owner rented this unit out at $525 weekly plus $50 cleaning plus 13% tax. On the flip side, I like the idea of Ramada’s network which may keep occupancy higher hence netting an equivalent as owner/management.

These oceanfront condo hotels are purchased by the vacationer/investor looking for passive income with stress free management in place. The potential for appreciation is great based on the price point ($110k) as anything oceanfront less than $200k, in a highly desirable area, plus high tourist area, should be rare in the coming years.

  • Taxes Estimated Yearly at $2,082 or $173 month
  • Maintenance fees at ~ $550 month
  • At 25% down ($27,500) the remaining balance is $82,500 at 7% (example only) the monthly would be $548.87
  • Total monthly expense is estimated at $1,272!
The risk is occupancy rate and the ability to keep income coming in… Trump International Beach Resort last year was at 70% and Bentley Hilton expects new records set in SoBe this year at 85% with the weakened US dollar. Miami Beaches did set a new tourist record last year and this year should exceed last years numbers. Sunny Isles Beach is ranked #1 tourist destination through TripAdvisor.com. If you’d like new blog updates once available, you can be notified by email (automatic updates sent to your inbox) or by RSS feed (see upper left column) each time a new posting occurs. 1.888.38.DREAM

6 thoughts on “Condo Hotel Advice~Sunny Isles Real Estate 'Marco Polo Beach Resort'

  1. Hi, Thanks for your excellent blog and articles. Enjoyed them very much. I have a question reg. you statement that “The maximum residency in a condo hotel (zoning) is 6 months.” Is this specifically for Sunny Isles, or does it also apply to Miami Beach? Thanks in advance for any information!!

  2. That’s a great question rk and I would say it’s for every condo-hotel based on City regulated zoning laws of Miami Dade County including both Sunny Isles Beach and Miami Beach. Many may say it’s unregulated and many owners DO slip past the commandos but fyi, I would love to have additional feedback from educated readers of this blog…

  3. Ashton, thanks for the quick reply. I just wanted to let you know what I’ve learnt since then, though it is still incomplete. Shortly after posting the above question, I emailed the Miami Beach Zoning Department with essentially the same question. I have been looking at buying a unit in a condo-hotel in the city of Mimai Beach, with a goal of spending anywhere from a couple of weeks to the entire winter there, each year. My concern was whether there are any city zoning rules that may set upper limits on how long one can stay in the unit. I mentioned that my plan was to stay there upto 6 months per year. A very helpful person from the zoning dept. emailed back the next day, and wanted to know two things, mainly, whether I planned to apply for homestead exemption (no) and how large the unit was (~900 sf). He then emailed back that there was no zoning problem with my intended use of staying there upto 6 months each winter. While this did answer the immediate question, I was left with the impression that the rules may be different if the unit were smaller (perhaps a small studio with no bedroom may have more restrictive zoning?) I wrote back asking if there was some document or web site that explained the zoning for all units and condo-hotels, not just my specific case, but have not heard back yet. If I learn something additional on this topic I will post back. A note for potential buyers in condo-hotels: sometimes there may be additional restrictions imposed in the condo rules. One needs to check both the condo docs, and the city zoning rules, and the more restrictive of the two may apply.