Off-season Rental on City Place Property? (leasing, HOA fees, insurance)

[virtual345]

Hello all, I made an earlier post about renting in Downtown WPB for the winter season, and quickly realized.
A)everything is sold out (or most it seems)
B) the rental prices for 2 bedrooms were $3600-4000 a month if avail.

So I was kicking around the idea of buying a 2 bedroom/2 bath condo in city place, perhaps at the City Place Courtyards that doesnt have any leasing restrictions (from what I read). However, I was hoping those with some experience owning property in the vicinity could chime in, how difficult would it be to rent it out in the off-season, let alone for near what Id be paying on average a month for the place? (guessing $1500-1600 after all fees). Do a lot of places just sit in the summer, or with the help of a property manager is it feasible to have the condo rented majority of April-December? Any thoughts would be appreciated.

[BVG_Steve]

Does not pay to even think about doing this. The prices in Cityplace are way overvalued from an investors standpoint . If you were to buy a unit as an investment and pay cash for a 2 bedroom 2 bath in the courtyards your annual ROI would be about 3.5% which is awful . This is not a place for investors to put money into.

Now as far as renting off season. That is a long shot, an extreme long shot. People are either looking to rent seasonal or annual. Seasonal rentals go for around $3200 to $3500. Annual rentals average about $1700. everyone is looking for an off season rental who rents seasonally, so there is lots of supply and very little demand. Why would anyone want an off season rental in the city vs the beach or waterfront? I would have to estimate you would be lucky to get $1300 per month on an off season rental and again it is a tough rent and most likely sit empty

Now lets look at the numbers as to why this is a lousy investment

Purchase price $250,000

$250,000 x 6% annual return = $1250 per month return needed

$1250 annual return
$400 per month property tax
$520 per month HOA fees
$40 per month insurance

$2210 per month expenses, (before repairs and maintenance) or $26,520 annually

Monthly rent on an annual basis = $1700 per month or 3.55% on your cash investment

If I was to own and rent on season and get 3 months rental I recoup $3300 x 3 months or $9900 or if I am lucky 4 months or $13,200

Not sure why anyone would want to own one of these as an investment. makes no sense from a financial standpoint