Condo answer from banker in residential re in sfl
Yes a lot of great buys right now. What equates to a great buy is when sfh/condo's go for way less than it would cost to build or in my case - where the rent provides an roi that makes the investment.
For example, 50k condo if you're maintanence is say $300 and taxes $150 and you are getting $1,200 a month for rent. Surely makes for a nice return.
Reason condo's are so cheap is that in some cases they (pls note big subject hard to blanket cover as you need to take each property by itself) the condo is unwarrantable which simply means that the property is basically unlendable - other units are simply hard to get financing for (but still possible).
Make sure you know how many units are in the process of foreclosure, how many are in the arrears for the hoa (if their is one - condo's for sure hoa).
Bottomline if you understand the property whether a single family home, condo, townhome etc - great buys exist here in the sfl market as the rental market is very strong. People have to live somewhere - and if one has the means to get money to purchase properties - a great opportunity exists to buy strong rentals (investment properties) or a nice second home for very little money.
Did you know that on a Fannie Mae owned property HomePath you can buy an investment property with just 10% down with No Mortgage Insurance. For example, one can buy a 50k property (homepath) for simply 5k down plus closing costs. Say PITI you are in for $500 - if rent is 1k to 1200k a month for literally 5k down you have a cash flow of $500 to $700 a month.
I could go on an on - on why condo's especially are cheap right now - tell you the one's to be wary of and the one's to identify as possible investments. I have been in banking for major banks here in sfl for a decade - and I am involved and very ware of our market - what happened and what is happening now...you are not missing a whole lot - main reason is the availabilty of financing. If you can get financing or have cash some great opportunities exist. Smart money is surely buying now and in a big way.
That being said the rainbow is not going to come out tommorow...sfl will have to work thru this for awhile - but when you can buy way cheaper than the cost to build and you have a strong rental market - yes opportunities do exist. And yes some of those 50k condo's would knock your socks off how nice they are.
Yes a lot of great buys right now. What equates to a great buy is when sfh/condo's go for way less than it would cost to build or in my case - where the rent provides an roi that makes the investment.
For example, 50k condo if you're maintanence is say $300 and taxes $150 and you are getting $1,200 a month for rent. Surely makes for a nice return.
Reason condo's are so cheap is that in some cases they (pls note big subject hard to blanket cover as you need to take each property by itself) the condo is unwarrantable which simply means that the property is basically unlendable - other units are simply hard to get financing for (but still possible).
Make sure you know how many units are in the process of foreclosure, how many are in the arrears for the hoa (if their is one - condo's for sure hoa).
Bottomline if you understand the property whether a single family home, condo, townhome etc - great buys exist here in the sfl market as the rental market is very strong. People have to live somewhere - and if one has the means to get money to purchase properties - a great opportunity exists to buy strong rentals (investment properties) or a nice second home for very little money.
Did you know that on a Fannie Mae owned property HomePath you can buy an investment property with just 10% down with No Mortgage Insurance. For example, one can buy a 50k property (homepath) for simply 5k down plus closing costs. Say PITI you are in for $500 - if rent is 1k to 1200k a month for literally 5k down you have a cash flow of $500 to $700 a month.
I could go on an on - on why condo's especially are cheap right now - tell you the one's to be wary of and the one's to identify as possible investments. I have been in banking for major banks here in sfl for a decade - and I am involved and very ware of our market - what happened and what is happening now...you are not missing a whole lot - main reason is the availabilty of financing. If you can get financing or have cash some great opportunities exist. Smart money is surely buying now and in a big way.
That being said the rainbow is not going to come out tommorow...sfl will have to work thru this for awhile - but when you can buy way cheaper than the cost to build and you have a strong rental market - yes opportunities do exist. And yes some of those 50k condo's would knock your socks off how nice they are.
What part of florida...
I asume you mean what parts of florida these properties are at? All over Palm Beach, Broward, Dade County. All kinds of units. One can purchase a single family home for 40-50k! Okay not a palace but decent. Condo's you should see what you can get for around 100k...super nice....really depends on use...for example one can buy an incredible home in Port St Lucie - for around 100k (80k-90k etc) that would blow your mind - 3-4 year homes that were selling from 300k+ but the rental market their stinks (no jobs) but if one is in Palm Beach (Boca Raton - Delray - Boynton) or Broward/Dade the rental market is super strong. Nice places - nice neigborhoods - heck how about a condo on the ocean for 100k in Fort Lauderdale area.
I asume you mean what parts of florida these properties are at? All over Palm Beach, Broward, Dade County. All kinds of units. One can purchase a single family home for 40-50k! Okay not a palace but decent. Condo's you should see what you can get for around 100k...super nice....really depends on use...for example one can buy an incredible home in Port St Lucie - for around 100k (80k-90k etc) that would blow your mind - 3-4 year homes that were selling from 300k+ but the rental market their stinks (no jobs) but if one is in Palm Beach (Boca Raton - Delray - Boynton) or Broward/Dade the rental market is super strong. Nice places - nice neigborhoods - heck how about a condo on the ocean for 100k in Fort Lauderdale area.
Well World Number One....
you would be wrong. That is happening. Surely not every single 50k - but plenty. More than plenty - no isolated property - but plenty. BTW I seperate the wheat from the chaff here - I'm not surmising, I'm not guessing...I know...I see tax reurns - I see leases - I lend the money - I know what is for sale/rent and what properties are going for. I have been a mortgage banker for 10 years with the top banks in the country - I obviously immersed in the biz with many connections. I have no dog in this fight but I am directly smack dab in the biz - believe what you want. I deal with it everyday. You are dead wrong. Anyone involved in the industry down here can tell you the same thing.
you would be wrong. That is happening. Surely not every single 50k - but plenty. More than plenty - no isolated property - but plenty. BTW I seperate the wheat from the chaff here - I'm not surmising, I'm not guessing...I know...I see tax reurns - I see leases - I lend the money - I know what is for sale/rent and what properties are going for. I have been a mortgage banker for 10 years with the top banks in the country - I obviously immersed in the biz with many connections. I have no dog in this fight but I am directly smack dab in the biz - believe what you want. I deal with it everyday. You are dead wrong. Anyone involved in the industry down here can tell you the same thing.
world number you
know what you know - so what are you saying?
I also know of what I am saying - Broward/Dade parts of Palm are a different animal...
You sound like you have no idea - or set in you own mind - I know very nice condos that can be bought for 50k that have rents for 1200 a month.
Thet are all over the place down here. You have no idea what you are talking about if you think you cant buy a nice condo for 50k and find rent for 1200 down here in sfl.
know what you know - so what are you saying?
I also know of what I am saying - Broward/Dade parts of Palm are a different animal...
You sound like you have no idea - or set in you own mind - I know very nice condos that can be bought for 50k that have rents for 1200 a month.
Thet are all over the place down here. You have no idea what you are talking about if you think you cant buy a nice condo for 50k and find rent for 1200 down here in sfl.
Yes, i will have to look for that Thread.
But the answer will be the same. As Yes you can find Condo's in South FL for $50K
and I found some on the Beach 1300-1800 sq ft for $100K
I've seen some of the Condo's that sell for $50K, rent in the same building for $1000-$1200
The $100K Condo's rent for $1400-$1800 ( some are fuking Crazy, $2500 )
Now you have to remember, I'm talking Hollywood - Hallandale beach areas
This is where I have been looking for the past 8 months, Because I already own there.
There are Plenty on Short sales, foreclosures..... A TON
i could pull a list of condos that have leased in the last several month , then pull the tax accounts on them and i would be willing to bet that the average market value of condos that rented for $ 1200 is over $ 100,000 ..
i have a brand new rental listing that were going for exactly $ 1200 a month. maket value = $ 122,000 .
just did a search for condos in the area i'm talking about . brought up 469 current condo listings . 25 of them were $ 50,000 or under. almost all 1 bedrooms. , max possible rent on any of them $ 700 a month . there were 46 that were $ 75,000 of less . max rent on any of them = $ 900 .
average sq. footage is about 725 .
thats just our tired little beach town.. i guess people are willing to pay too much in rent down in the high and mighty palm and dade county for a band box.
Betall
You got it! I live right near you. If you read my messages - I have worked in the mortgage division of a major bank the past decade. I have seen the rise and the fall. Rentals down where we are - incredibly strong. Folks in other parts of Florida have no clue about our market - that guy is comparing central florida lol uh okay - says he is in the rental business lol I work for a major bank know the assett managers know the reo department - work and close properties every week. I know better than most as many folks talk - I see it all tax returns, sales contract, appraisals, etc so no bs here. But hey Im not here to "convince" anyone or debate. I see and talk to clueless folks everyday (folks trying to refi who believe their house is worth x when its y) Just because these folks believe it so dont make it so...
I see smart money finally buying which is a good news for all us south floridians. Especially in the quagmire of Miami and the downtown condo disaster. Still a challange to get buildings warrantable (allowing fannie/freddie or fha financing) - When I say smart money - I mean major equity firms who are buying blocks of units. I have been working with a large equity firm which recently purchased 3k units in Sfl - working on getting properties "warrantable.":howdy:
Value is so low - even if they cant sell the rental market is there and profitable finally. On a smaller level - I see some smart money buying smaller blocks - you know the old motorola plant up in Boynton? they built this whole planned community? Well they missed the market - disaster - I know a guy who purchased like 30 - 40 units - got them for around 50k a piece (these were units that were selling for high 200's) - property is unwarrantable - he doesnt care he bought em cash renting them from 1100 to 1400.
Down to just individuals who want to buy "one" unit to live, rent or as a second home. Plenty of units at incredible prices. And yes, decent places. Many first time home buyers are buying for one simple fact they can Buy the same property PITI cheaper than they can rent it for!
A realtor friend of mine just bought a property (to simply hold) bought it under his moms name in a +55 community - for $9,000. A palace no. Liveable - yes - believe it or not. Old appliances of course. But hey no crack town. Nice decent area - development and unit liveable - Hoa is 225 (insurance and property maintanence) heck for less than a car payment lol...
I know really nice condo's on the ocean for 100k - beautiful. Heck you can see the ocean!!! Better than the basement of a 2 family home in queens, ny...lol
It will take awhile for values to rise - we have more trouble to deal with. But this will pass. Folks with money who are buying now will make out like bandits - unless we have a second great depression or a major war/disaster - but then we are all screwed...
You got it! I live right near you. If you read my messages - I have worked in the mortgage division of a major bank the past decade. I have seen the rise and the fall. Rentals down where we are - incredibly strong. Folks in other parts of Florida have no clue about our market - that guy is comparing central florida lol uh okay - says he is in the rental business lol I work for a major bank know the assett managers know the reo department - work and close properties every week. I know better than most as many folks talk - I see it all tax returns, sales contract, appraisals, etc so no bs here. But hey Im not here to "convince" anyone or debate. I see and talk to clueless folks everyday (folks trying to refi who believe their house is worth x when its y) Just because these folks believe it so dont make it so...
I see smart money finally buying which is a good news for all us south floridians. Especially in the quagmire of Miami and the downtown condo disaster. Still a challange to get buildings warrantable (allowing fannie/freddie or fha financing) - When I say smart money - I mean major equity firms who are buying blocks of units. I have been working with a large equity firm which recently purchased 3k units in Sfl - working on getting properties "warrantable.":howdy:
Value is so low - even if they cant sell the rental market is there and profitable finally. On a smaller level - I see some smart money buying smaller blocks - you know the old motorola plant up in Boynton? they built this whole planned community? Well they missed the market - disaster - I know a guy who purchased like 30 - 40 units - got them for around 50k a piece (these were units that were selling for high 200's) - property is unwarrantable - he doesnt care he bought em cash renting them from 1100 to 1400.
Down to just individuals who want to buy "one" unit to live, rent or as a second home. Plenty of units at incredible prices. And yes, decent places. Many first time home buyers are buying for one simple fact they can Buy the same property PITI cheaper than they can rent it for!
A realtor friend of mine just bought a property (to simply hold) bought it under his moms name in a +55 community - for $9,000. A palace no. Liveable - yes - believe it or not. Old appliances of course. But hey no crack town. Nice decent area - development and unit liveable - Hoa is 225 (insurance and property maintanence) heck for less than a car payment lol...
I know really nice condo's on the ocean for 100k - beautiful. Heck you can see the ocean!!! Better than the basement of a 2 family home in queens, ny...lol
It will take awhile for values to rise - we have more trouble to deal with. But this will pass. Folks with money who are buying now will make out like bandits - unless we have a second great depression or a major war/disaster - but then we are all screwed...
