Understanding Condo-Hotels In Daytona Beach. Condo-Hotels vs. Condos. Pluses and Minuses is the 6th post in the series. You can see previous installments here:
Understanding Condo-Hotels In Daytona Beach. Condo-Hotels vs. Condos. Living and Renting
Understanding Condo-Hotels In Daytona Beach. Condo-Hotels vs. Condos. Management
Understanding Condo-Hotels In Daytona Beach. Condo-Hotels vs. Condos. Safety of your Investment
Understanding Condo-Hotels In Daytona Beach. Condo-Hotels vs. Condos 

Of course, the answer depends on your short and long-term goals. Both condos and condo-hotels are not income producing properties the way the apartment complexes are. You can't really apply investment approach to them, as they are at best speculative properties, and the money is in the appreciation.

If you buy a condo-hotel unit in Daytona Beach area for $50K, and its potential selling price at half warm market is $150K, then you are winning even if meanwhile its income does not cover the maintenance fee and property taxes. If it costs you $100-150 a month on average to cover your costs, then you are spending $1.2K-$1,8K a year, and if you keep it for 3 years, and then sell for $150K, you subtract this amount as expenses, like closing costs and commissions.

In that sense buying a residential condo in Daytona beach area with the goal of future resale would not differ much from condo-hotels. And in this market today you can buy both condo-hotel units and residential condos for under 500 cents of their prices in the hot market of 2005.

All condo-hotels in Daytona Beach Area have sprinkler systems. Only condo buildings (residential) that were built after 1983 have sprinkler system installed, and there are plenty of condominium buildings built in the 70s. Keep in mind that fire ladders can't reach high floors.

If buying a condo-hotel in Daytona Beach area, the unit being direct oceanfront vs oceanview has more significance, than when buying a residential condo. Condo-hotels charge more per oceanfront unit, than for an oceanview. However, oceanfront usually costs more, and also you should be aware of the possible water intrusion during the hurricanes, storms, and simply heavy rains. More so on the oceanfront. Older condo-hotels (and I suspect newer ones as well) will be flooded in Hurricanes. There may be damage to your unit. The beauty of being on the oceanfront comes with the price.

And if you are buying with a goal to sell when the prices are up, keep in mind that residential condos start appreciating first, and it will take maybe more than a year or two, before condo-hotels market start warming up. So, if it is a matter of timing more than money, buy residential condo.

No need to over complicate things. With prices for less than 50 cents on a dollar worrying too much is not good for your health.

Call us 386-405-4408 with questions, we are here to help.