Condo-tels

Only a moron born with a silver spoon in his or her mouth would invest in a condo-tel. Let me see, the condo-tel people up front tell the so-called savvy investor they will get 10% of the purchase price split into 12 months every year, so if they buy a $400k condo-tel they will get $40k / 12 months which equals $3,333.33 a month. they also boldly tell the so-called investor they ( the management ) will also hold 4% of the purchase price in escrow for repairs and furniture replacement done every 4 years, so now it's $24,000 / 12 equals $2,000 a month. The Condo-tel HOA is $670 a month, $2,000 minus $670 equals $1,330.00 a month. So if this so-called savvy investor puts 50% down out of mommy and daddy's trust fund they set up for spanky the mortgage payment for $200k is $1,398.00.. oh oh minus $68, oh yes there is property taxes that will be around $5k a year based on the sales price and cleaning fees the Condo-tel management will charge for each exit cleaning and that will probably be 20- 30 charges per year. Oh yes there is a monthly property management fee as well, some have a CDD that are added to the property taxes usually around $1,500 annually. Most condo-tel management companies charge guests a resort fee of $17.50 a Day so guests and owners can use the pool and park their car, I'm sure there are some other fees I'm not aware of and the icing on the cake is the owner can only use the condo max 15 Days a year and not during the busy season. It's too bad us average people are not savvy investors, when it's time to sell good luck!