Fountain Beach Resort
313 S Atlatic Ave., Daytona Beach. FL 32118

2009 turns to be a very uneventful year fro the Fountain Beach Resort so far. 2 sales at $30K (foreclosure sale) and $50K. There were 3 sales in the whole 2008, so it is not bad in comparison. Or we can say it is as dead as last year. All activity is in the Plaza Resort. Prices are similar and were even better, but you can't compare the properties.

We do not have the financials (as this would constitute the sale of securities), but as far as we know, the owners who rent with the Front Desk are in the red. Income is not great in the slow economyi, expenses still inched up a bit and the maintenance fee for a studio is at $338 with no reserves, which is always a short term solution, and may backfire in the long run.

Reserves are supposed to cover those long term costs like replacement of elevators, painting the building, and  fixing the  roof. The last item is usually taken care of by Hurricanes. They come, hit the roofs, and then it is a skilll of negotiators to get the  insurance money for the roof, whether it was really the result of a hurricane.

I think a lot of new roofs in Daytona came after Hurricane Charley hit the area in 2004. At least that was the case in the Fountain Beach Resort.

Prices for the studios start at $54,900. Double unit (first from the ocean) is only $99,900, and in any other time would be a terrific value with its two balconies, two bathrooms (one is a jetted tub), full kitchen and the first unit on the south side from the ocean. But in this market it is available, and the phone is not ringing.

Not yet