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Condo Hotel Advice~Sunny Isles Real Estate 'Marco Polo Beach Resort'
by Ashton Coleman on June 10th, 2008., under F.A.Q., Sunny Isles Beach Condos, Uncategorized
F.A.Q., Sunny Isles Beach Condos, Uncategorized | Tags: oceanfront condo hotel, Sunny Isles real estate, Trump International Beach Resort
In 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
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