Yes, It’s Possible! Oceanfront Daytona Beach Condotels for Under $100,000
Update May 21, 2010
See all available area condotels for sale at Daytona Beach Condotels for Sale.
I can’t say that oceanfront condos are selling for under $100,000, but recently Ormond Beach condos under $100,000 have become available. Just six months ago, the lowest priced condo in Ormond Beach was $119,000. Now some units are available at under $100k. Daytona Beach is where most of the condotels are located. If your looking in Port Orange, you will find very few condos at all and no condos. You’re better off there looking for lower priced Port Orange homes for sale. The same is true in Ormond Beach, with only a few condotels near the border.
There are now 200 condotels and Daytona Beach condos under $100,000. There is plenty to choose from. Call me at 386-566-7503 to discuss your needs.
Daytona Beach condotels burst on to the Daytona real estate scene a few years ago. They are a smart and low cost alternative to much more expensive condominiums.
OK, what are condotels? Simply when a hotel or motel is converted to a hybrid type of condo we get condo hotels. The result is that you have neither a hotel or a condo, but some of both. Here’s how it works?
Several years ago some of the oceanfront hotels and motels in Daytona Beach and Daytona Beach Shores were converted to condotels. The conversion included the installation of kitchens to make the units self-contained. The result might be considered a hotel room with a kitchen that you can own.
Why in the world would you want to own a hotel room? A decent hotel room in Florida during the Winter season is expensive, but an oceanfront hotel room is really expensive. You could pay over $200 a night for a room that doesn’t include a kitchen. During events like Bike Week, Biketoberfest and races, you could pay a lot more.
If you like the beach, like the warm Florida Winters, and like to get away for a few days or a few weeks, a Daytona condotel is a great alternative.
As of this morning, there were 89 condotels on the market in the Daytona Beach MLS at under $100,000 and a total of 327 units. Many of these units are beachside. Of course, the beachside units are priced higher but when compared to Daytona Beach condos, the prices can be less than half or more.
How could you make the cost of your vacation and play time home cost next to nothing? First let’s look at the cost. If you buy a unit for $99,000 with about 20% down, the monthly mortgage payment would be about $520 per month. Real Estate taxes should be about 2,160 or $180 per month. There is a monthly maintenance fee for these units that ranges from about $200 to $400. Let’s take $300 for our purposes. Adding together mortgage, taxes, and maintenance fees (which generally include insurance and cable and sometimes electricity and cleaning) and we reach a total of $1,000 per month. But it gets better.
These units are prime for rentals. They can even be rented on a daily basis which is not permitted by most condo associations. If you rent the units during events and during the season, it is not unlikely that you could recover a good portion of your $1,000 per month cost.
Understand that if you rent the units yourself, you keep all of the rent. If you use onsite property management, their fee ranges from about 30% to 50%. If you use a local property management company, the fee will range from about 15% to 20%. My fee is 15%.
Of course there are tax implications that are beyond the scope of article, but you could benefit even more if you meet IRS requirements for investment property because you could deduct mortgage interest and other costs. An account or tax lawyer could help you there.
Please note that the numbers presented here are for illustration only. Every situation is different and the numbers could be more or less favorable depending upon the unit and your individual situations.
To get a visual idea of what these units look like here a couple of pictures of the inside of one of the units and a view from the balcony. See more pictures at Daytona Beach Harbor Beach condotel. Obviously these are not you average hotel room. Many Daytona Beach condos and Daytona Beach homes don’t come close to comparing to the style of these units.
So are you ready to consider Daytona Beach condotels? Give me a call at 386-566-7503. We can talk about what’s available. I can send you pictures and information on units that may be of interest to you. These are some of the best values in Daytona Beach property available.
For more information go to What is a Condotel?