HOW TO BUY A UNIT IN PLAZA RESORT & SPA IN DAYTONA BEACH. TALKING ABOUT VALUES

Sharon - $529 a month plus $16 with pennies a month for Liability and content insurance, which is mandatory if you keep it on rental program.

The good part is that they generate enough income to offset both maintenance fees and taxes, if you calculate it on the annual basis. Meaning that you will get a fat check in February, March, in summer months, but not as great in January, so you might have to write the check to cover the gap in the slowest months, but my clients tell me that through the year the unit pays for itself and there is some cash for the owner after all expenses paid.

In this slow economy not all condo-hotels break even, while they were just 3-4 years ago.

Debe - this is a 4-star resort with good amenities, good location. I have overstreched myself already and I am watching these deals with my hear bleeding (LOL)

Never in my dream could I imagine that the prices in Plaza would go so low...

Adam,

Ashley is the wrong candidate to talk to. She is Owner Realtions Manager and works with the owners, not with Buyers. It is just not her job.

In Daytona Area 50% to the management company is not a lot. Plaza takes 50% AFTER they take 3% for CC operations, and after they take 10% for cleaning, and after they take 3% for Furniture and fixtures replacement reserve. For the property like this they are operating on a very slim profit margin. But I think that what important is that they are renting the units and are in the black  according to the owners. But this is not and may not be a cash cow now and in the future.

Occupancy rates are not open to the public. It is the hotel operation and I do not expect them to disclose any part of it. They can always rightfully say that you can get the rental income figures from the Seller and this is all that matters for the Buyer. Rental rates (or rack rates) could be on the Internet, but I do not have them as hotels operate on "what you can get" basis. I know that today oceanfront room is $149 a night, ocean view is $129 a night and city view is $119 a night. The rate fluctuates week from week due to the season and even more so by the event.

Here is a very important thing. Rentals are part that I can't touch. Discussing income, derived by the effort of the third party (Southeast Management) is considered sale of the securities by SEC, and I am not licensed to sell securities and may easily lose my license.

We sell real estate and by law are not allowed to advertise any financial benefits of the purchase besides pure real estate (enjoyment, even resales at profit in the future, etc). You can have this information, but it has to come from the Seller. During the Due Diligence time we ask Sellers to provide you with this information, and they may instruct the Management to give the rental information to the Buyer, so we get it and forward to the Buyers, but we do not keep it. My clients who have units in Plaza tell me that they are "of course, in the black", but this is about the units which have no mortgage. My client tells me that it is not a great investment in terms that it has no great income, but that he does not have to reach into his pocket to pay maintenance fee and taxes.

This does not mean that you can't get it, it simply means that you have to get it from the Seller. And the way it is done is as part of Due Diligence. Meaning that when we have an agreed upon contract (price, terms) then the Seller has to provide the condo docs, budget, minutes of the last meeting, last quarter financial statement (as per contract). At this time you can also request the rental history from the seller. Sometimes it is not easy, like in foreclosures, where we can't get anything from the Lender. So it is sometimes a fight to get it, but we manage it for the Buyer. However, doing it before there is an accepted contract is not working.  

Taxes are public information, however, the buyer's taxes will not be the same as Seller's taxes. In a falling market the buyers' taxes most probably going to be lower, in a heating market they most probably will be higher. For the practical purposes you can calculate your taxes at 2%-2.2% but this is just an idea of the taxes, not exact. Taxes are public record and you can search it at: http://webserver.vcgov.org/vc_search.html Use the address as 600 Atlantic and you will get Plaza.

Adam, still I am confused. Do you have a unit in mind? I think this could be a good starting point. Then we can go from there.

I hope I answered your questions, 

The incomes discussed on MLS are usually about the properties rented by owners, and that is not the income derived from the activities of third parties, and there is no problem here. As there is no problem when we sell income producing property.

Income is different each month and in March there will be a fat check and in December there will not be enough, but if you calculate the whole year, the income according to my clients is covering maintenance fee and taxes. No matter how you look at it, you will come to the same.

Even if you know their ADR, you will end up with the same.

Ashley is saying that I have to handle it, but I do not lie. I do not have any figures for rental income for each type of unit. Ashley is not giving me those, she is not allowed, this is private info. Numbers are available to Buyers when they are in contract. Considering that there are oceanfront, ocean view and city view units, their incomes are different. My information about units paying for themselves come from Oceanfront units. I myself do not have that info on oceanside units and city view units. Knowing that Maintenance fee is $528.50 a month and taxes about 2%-2.2% of the value, you got yourself the needed approximate number. If you do not believe me, you can ask Ashley for the rental income numbers for any of the units in Plaza. See if she gives them to you. She would not give them to me, without the owner allowing it.

I do not have a problem to send the list of units there and mark oceanfront, ocean view, and city view, but I would still prefer to first show you the property, before writing any offers.

I understand that there are investors, who look at the numbers and when they see that they can buy, for example, a $300K property (what it was sold for in February 2006) for about $50K, which is in operation and assumably covers all the expenses, the consider it low risk and they buy not seen. That's fine.

If you, however, want to make sure that you not only buy something with good potential (due to the difference in value before and now), but that it is something that you like to use yourself, I would strongly recommend that you visit it before making any steps.