Tampa condo conversion - Risky? (for sale, apartments, leasing)

[Ed81]

I'm looking at buying a condo in South Tampa. The neighborhood is beautiful, the building is historic and charming. It was previously appartments, and is being renovated. None have sold yet.

If I buy in, and the building converts back to appartments, what are my rights? Does the developer still have to complete the renovations to the building per my contract?

What if he sells the building? Is the new owner obligated to meet the requirements of my contract and maintain the building as promised?

[deckardc]

I don't know about the legal questions you asked but if I were you, I would hold off on buying a condo for at least a year. Florida is inundated with condos for sale and a gazillion more, that are currently under construction, are going to hit the market within the next year. The condo prices are going to drop further. I wouldn't want to buy now only to wind up with negative equity in a year. I do know that apartment conversions tend to have lower appreciation than those built to be condos.

[yukon]

If you want to buy a condo, buy in a full condo complex, not a hybrid/half breed. Also, ones built specifically as condos seem to be better constructed - or at least the one's I've rented over the years were (much better built than apartments in the same area). Lastly, be sure the condo has an active Home Owner Association. I know HOA is a bad word to some, but HOA's that consistently enforce the condo covenants are what help keep that condo's resale prices up. No HOA often also means no criminal background checks on incoming owners and rental tenants.

[bfa]

Do yourself a favor, buy a true condo. Don't go for these conversions. I can list any number of reasons for you:

1. Appraisal issues.
2. Resell values.
3. Insurance.
4. Living in a complex that is half renter/half owner. This affects resell as well.
5. Many apartments are older, and built to different codes than a newer, true condo.
6. Many times, if a certain number of apartments/condos are not sold, the developer goes back to leasing them.

I have worked for a developer that tried to convert apartments. I have also worked for a builder that built 'real' condos. I can tell you, there are many things to consider. Think of it this way, picture yourself as a buyer in 5 years; would you purchase an apartment that is now a condo, or a condo that was built as a condo?

Best of luck!

[JSnFla]

i wouldnt buy anything anywhere in tampa right now unless u have to....prices will be going much much lower

[BucFan]

There are a lot of apartment conversions with great amenities (fitness center, pool) and great locations that its hard to pass up. Other than potential price depreciation, poorer quality construction, I wonder what the other drawbacks are.

[Eastern Roamer]

If you buy a conversion and the owners decide to retain some units as rentals (because of market conditions), they could end up renting theirs for less than your mortgage. If you're hoping to rent yours out, this obviously puts a damper on your plan - you won't be able to compete.

[BucFan]

Thanks for the info.