Townhouse Vs. Single Family (Orlando: for sale, real estate, rental)

[SpecialK1229]

Hello Everyone:
I am interested in purchasing a vacation home in Orlando. Can anyone tell me the difference between a townhouse and single-family besides it being attached? Can you tell me about Orlando neighborhoods 32824 (i.e. things to do, supermarkets, hospitals, restaurants, etc.)? There is a company called Primehomebuilders.com {Portofino Meadows} seems interesting, does anyone know about it's reputation? I'm also interested in renting it out, any advice? Thanks.

[GregTraub]

Main difference between a townhome and single family besides the fact they are attached, is the insurance and HOA premiums. On MOST townhomes (not all) the HOA takes care of insuring the building exteriors under a community master policy. You will also find most of them take care of the grounds and common area's.
Single family homes are all on you. Their HOA dues are usually very low as they don't take care of much. Insurance, and all maintenance is on the Homeowner's.

Hmm, Neighborhoods in 32824....there are a TON. I have heard of Primehomebuilders, but do not have any experience with them. If you are looking for a vacation home also as an investment, there are many communities in that area (more closer to disney really) that are zoned for short term rental. You want to stick to the ones that offer the short term rental ability and onsite management. You can get some great deals right now that would almost pay all your expenses and leave you with the ability to stay there whenever you like.

All depends on your vision, goals, and finances.

The best way to get to know the area is to drive it, as I always do. And for now I'll leave it to the non-sales people to tell you the skinny on what's to do on the area

[VaNative]

I had a townhouse in Virginia and liked it...mainly because the HOA dues included outdoor maintenance and lawn care. BUT...when the dues go up, you're stuck. I got tired of living attached to someone mainly because of privacy but noise as well.

[sworlando]

My advice about vacation properties in Orlando is to avoid them if you're looking at it as an investment. Very slim chance of making money on these properties. You're better off buying in a residential neighborhood close to the parks because you'll come out way ahead even though you can't rent them out. Builders in these vacation communities offer agents double or triple the commission because they know its a hard sell and appealing to agent's greed.

[SpecialK1229]

Thank you all for your advice. For my needs a Townhouse is more suitable for me. My dream is to invest in real estate. How often do the fees go up? Is it annually? How much do they go up? Can anyone recommend any townhomes "closest" to Disney World with amenities? because I do not drive. Mr. Greg Taub do you have a website? Thanks again.

[GregTraub]

Originally Posted by sworlando

My advice about vacation properties in Orlando is to avoid them if you're looking at it as an investment. Very slim chance of making money on these properties. You're better off buying in a residential neighborhood close to the parks because you'll come out way ahead even though you can't rent them out. Builders in these vacation communities offer agents double or triple the commission because they know its a hard sell and appealing to agent's greed.

SWorlando is actually right on as far as the commissions some vacation communities give realtors. They offer ridiculous commissions to realtors, and this is usually a sign that the neighborhood isn't selling well, flags are up, and if the cleint still wants in that neighborhood, I will rebate most of that ridiculous commission back to the buyer to lower their real purchase price. I could never accept a commission of 10-15% in good conscience.

As far as the comment that buying a single family home will put them way ahead. I'd have to dissagree. While single family homes traditionally appreciate faster than a townhome, if you cannot rent out that single family home you will pay WAY more in carrying expenses than you will ever get back in appreciation...that's IF you can even afford the monthly nut.

There are pro's and con's to each and depending on goals and finances involved in owning a vacation home as also an investment.

SpecialK1229: I applaud your desire to invest in real estate.....but since you are a first time investor TREAD VERY CAREFULLY. Especially nowadays with the market going through a correction. There is blood on the streets and those that are in a position to capitalize on the adjusting market will come out on top...especially the long term investors. However, it is very important to know what the risks are involved with real estate before you jump into it, you can lose your shirt very easily if your not prepared to take short term losses if...no WHEN...something goes wrong.

You can go to my website by clicking on my name on this forum, or just go to Orlando Florida Homes for Sale (I hope that doesn't get this post deleted). However, My vacation home section is still under construction, there's just so much available around disney, and changing all the time It's taking me forever to figure out a way to best present the info in a concise understandable way.

As far as homeowners association fee's go, there is no set timeframe or limit they go up. The association is represented and ultimately managed by and for the homeowners. Fee's are based on the costs involved in taking care of what the association takes care of. For instance, if insurance premiums go up, cost of lawn maintenance goes up, pool upkeep, gate upkeep, reserve requirements etc. If the cost of such amenities go up the cost will be passed directly to the homeowners. If there are no cost increases, there should be no increase in fees, every homeowner has a vote in the decisions of the board.

[Mwatch]

Given insurance costs/taxes HOA fees, most townhomes don't cashflow now without huge downpayments. Your window of opportunity was pre 2004 pricing.