Earlier this year the Hawthorn suites in Lake Buena Vista quietly sold out all of their units in less than a month. These 540 sq. ft. units were an investor's dream, with a price tag in the mid $100's and an area average occupancy of over 84% these properties to quote one of our investors "make perfect sense".
Many of the people buying these condo hotel conversions had different motivations for buying a second home in Orlando, but all had the same reason for buying a condo hotel conversion, namely the opportunity to cover their running costs with minimal or no effort. Many had sold their single family homes in Orlando, cashed in on the rapidly increasing prices and than reinvested their earnings utilizing a 1031 exchange and bought several condo hotel units. Others simply wanted an affordable second home near Disney which they could use when they wanted, and let the onsite management company rent it for them when they are not using the property.
So the big question is what are the benefits of a condo hotel?
There are many! What most people do is have the management rent the units out for them to offset the costs, and sometimes even creating a positive cash-flow. If you feel like going on vacation, you just call up the management company and let them know that you'll be using your unit on specific dates, and they set it aside so no-one else uses it.
Condotels also have been appreciating in value at rapid rates in the last few years. Many investors have made incredible profits just purchasing and selling these units, which is known as flipping.
And don't forget about the amenities! Think of all those amenities you have when you go to a luxury resort. Many condotels have pools, spas, tennis courts, restaurants, bars, saunas, playgrounds, and more. Keep in mind, however, that different establishments offer different types of amenities and you should research them before assuming that they have everything that you want. Many of the cheaper condo hotel conversions may not have some of these amenities, but if the price tag is less than $200,000, many people can forgo the spa!
For the condo buyer, these types of developments can offer enhanced financial returns when owners choose to place their units in a rental pool. Individual owners usually can put their units in the hotel-room rental pool while they're not using them and get a portion of the proceeds. Better yet, they get access to the same amenities and services as hotel guests.
By capitalizing on a hotel's reservation system, brand recognition and management expertise, unit owners are more likely to receive a higher level of rental income through a rental pool agreement with a recognized professional operator, despite having to share a portion of their units' revenues. Due to the high demand for accommodation near the theme parks, many hotels are dropping their branding as the hotels are showing good occupancy without the extra cost of paying for a brand name.
If you think that a condo hotel near Disney might be for you, or if you want to research condotels more, please visit http://www.orlandocondohotel.net
Marcus Truett is a second home specialist with the office of Ronald P Bressan Real Estate. Visit Marcus Truett's condo hotel website at http://www.Orlandocondohotel.net
Property Investing Secrets:How You Can Turn A Below Average Deal... Read More
Did you know that you can save tens of thousands... Read More
Finding a rent-to-own house is one of the many ways... Read More
With a job that paid $3.40 an hour, I saved... Read More
All of us have emotional preconceptions and assumptions. They are... Read More
With the recent release from the UK's biggest mortgage lender,... Read More
Staging can involve minimal effort on the part of a... Read More
What if you could "place an order" for the construction... Read More
New concepts in Interior Design Psychology are helping home sellers... Read More
Five months ago I was faced with a decision to... Read More
Let's say you've had your home on the market for... Read More
I have been a mortgage lender for many years and... Read More
Whether you are a real estate investor looking for a... Read More
As you continue to read about real estate investing, you... Read More
Buying a house can be a daunting task, even for... Read More
Virtually any state in the country has the appeal of... Read More
When managing residential properties one bad tenant can often undo... Read More
Welcome to the second segment of a three-part series about... Read More
Traditionally, real estate has been viewed as a sales industry.... Read More
Whenever you own a piece of land, you will be... Read More
Is it your dream to one day own a holiday... Read More
Follow a few simple guidelines, and marketing your own home... Read More
Portugal has long been a popular choice for people, particularly... Read More
The first thing you need to do is stop thinking... Read More
When selling your Boston home, it's good practice to be... Read More
All of us know that real estate commissions can work... Read More
I start my marketing with obituaries followed with probate filings... Read More
If you are considering getting involved in investment real estate,... Read More
Twas the night before Christmas and all through the house... Read More
The Florida housing market has attracted many foreigners to invest... Read More
That's A Funny Thing To Say About Property Auctions; They're... Read More
Typical log home company advertisements in popular log home magazines... Read More
Home staging is the concept of preparing a house for... Read More
The thought of selling a house strikes fear into most... Read More
If you have recently purchased some real estate for investment... Read More
The best price to sell your home is always determined... Read More
As soon as you decide to put your home on... Read More
Whether it's a lakefront cottage or a log cabin in... Read More
Under Section 1031 of the Internal Revenue Code, owners of... Read More
My report is for you to use your power to... Read More
Home sellers should keep on top of their pending sale;... Read More
In the superheated San Francisco Bay Area property market, foreclosed... Read More
From the desk of Colm Dillon ... Author "Residential Development... Read More
If you're a foreign national thinking about investing in the... Read More
According to Warren Bland, PhD, an award-winning author and geographer... Read More
Once relegated to the classified advertising section of the local... Read More
The home selling and buying process can be confusing. This... Read More
Be a slumlord? Okay, I got your attention, now the... Read More
When buying and selling homes, the property purchase is often... Read More
So you're interested in going into business as a property... Read More
Real Estate Real Estate