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!