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My Condo Dilemma

Should Joe Sell his Property?

  • Take the money and run!

    Votes: 9 90.0%
  • Fight, fight, fight

    Votes: 1 10.0%

  • Total voters
    10

Flopper

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Generally, a high percent of rentals is a red flag in purchasing condo units because the majority of condo owners buy a unit as home, not as a source income. Renters unlike resident owners general have little interest in the condo activities. In short resident owners have different goal than renters and HOA's often clash with owner/landlords. Thus many HOA's create obstacles for owners considering in renting.

Ours didn't... probably because when the crash happened in 2008, they were happy ANYONE was buying up all these units that got foreclosed on.

Anyway, I'm waiting on the investor's counter offer to see how many people change their minds. I"m halfway tempted to vote no this time out of spite.
Only knowing what you have written in this thread, I would not. You would be gambling a lot on the hope that the bidder would bump his offer up a few percentage points. The fact that the condo has a large number of rentals indicates it is not in high demand by homeowners. I bought a condo unit 8 years ago. One of the criteria I used in selecting the unit was the very low rental rate, only 1 unit rented out of 65 units. Today there is still is only 1 rental and the unit has doubled in value. Prospective homeowners tend shy away from condos with many renters fearing that absentee landlords will be more interested in keeping current cost down and less interested in the long term future of the condo than resident owners.
 
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surada

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Generally, a high percent of rentals is a red flag in purchasing condo units because the majority of condo owners buy a unit as home, not as a source income. Renters unlike resident owners general have little interest in the condo activities. In short resident owners have different goal than renters and HOA's often clash with owner/landlords. Thus many HOA's create obstacles for owners considering in renting.

Ours didn't... probably because when the crash happened in 2008, they were happy ANYONE was buying up all these units that got foreclosed on.

Anyway, I'm waiting on the investor's counter offer to see how many people change their minds. I"m halfway tempted to vote no this time out of spite.
Only knowing what you have written in this thread, I would not. You would be gambling a lot on the hope that the bidder would bump his offer up a few percentage points. The fact that the condo has a large number of rentals indicates it is not in high demand homeowners. I bought a condo unit 8 years ago.

One of the criteria I used in selecting the unit was the very low rental rate, only 1 unit rented out of 65 units. Today there is still only 1 rental and the unit has doubled in value. Prospective homeowners tend shy away condos with many renters.

What a clever devil you are!
 
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JoeB131

JoeB131

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If 60,000 is 20% above the market price, why is it only enough for a down payment, why is it not enough to replace what you have?

OH, it's more than enough for a down payment. I wouldn't really need a down payment, mind you, because as a Veteran, I could get a VA loan. It's how I got this one with no money down.

Looking at properties, I couldn't get something at the same price... Higher mortgages and higher association fees.

I got the formal letter of what the new deal is today. I'll probably vote yes, but I don't think this one is going to fly, either.
 
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JoeB131

JoeB131

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Only knowing what you have written in this thread, I would not. You would be gambling a lot on the hope that the bidder would bump his offer up a few percentage points. The fact that the condo has a large number of rentals indicates it is not in high demand by homeowners. I bought a condo unit 8 years ago. One of the criteria I used in selecting the unit was the very low rental rate, only 1 unit rented out of 65 units. Today there is still is only 1 rental and the unit has doubled in value. Prospective homeowners tend shy away from condos with many renters fearing that absentee landlords will be more interested in keeping current cost down and less interested in the long term future of the condo than resident owners.

I don't disagree with you. I think I just don't like the attitude of these buyers. They were only offering a $1000.00 incentive for yes votes the last time. They've now upped it to $5000.00, but I consider that kind of insulting.

What I really don't like is I've had my life on hold since last October waiting for these fools to decide what they want to do. I know I have to remodel my bathroom and do some other work, but I've been putting it off (no point remodelling it if they are going to tear it all out to make them uniform.)
 

Flopper

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I don't disagree with you. I think I just don't like the attitude of these buyers. They were only offering a $1000.00 incentive for yes votes the last time. They've now upped it to $5000.00, but I consider that kind of insulting.

What I really don't like is I've had my life on hold since last October waiting for these fools to decide what they want to do. I know I have to remodel my bathroom and do some other work, but I've been putting it off (no point remodelling it if they are going to tear it all out to make them uniform.)
I understand how frustrating that might be. I hate to deal with buyers that lowball you but how much you like or dislike the buyer in the end, is irrelevant. The guy I bought my apartment from was a real son of bitch. He was selling the unit himself so there was no intermediary so I had to deal him if I wanted the unit. I made an appointment to see the unit and he was no show. He called me back to rescheduled at a time that was convenient for him, but not me. At the appointment he was rude and lied about serval things. However since the wife and I loved unit and he was selling under market to get a quick sale, we submitted a bid with a 24 hr limit and he accepted. It's been a great place to live and it's gone up in value significantly.
 
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JoeB131

JoeB131

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I understand how frustrating that might be. I hate to deal with buyers that lowball you but how much you like or dislike the buyer in the end, is irrelevant. The guy I bought my apartment from was a real son of bitch. He was selling the unit himself so there was no intermediary so I had to deal him if I wanted the unit. I made an appointment to see the unit and he was no show. He called me back rescheduled at time that was convenient for him, not me. At the appointment he was rude and lied about serval things. However since the wife and I loved unit and he selling under market to get a quick sale, we submitted a bid with a 24 hr limit and he accepted. It's been a great place to live and it's gone up in value significantly.

On the other hand, we had a unit on our floor where the current owner evicted his tenants on the 30th and cut off the power. The tenants were kind enough to leave a refrigerator full of food behind.

Hilarity ensued. We eventually had to call the cops because we thought there might be a dead body in there.
 
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JoeB131

JoeB131

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Hey, for those following along on this thread, Flopper ,

The second vote came, they still didn't get the result they wanted, so now they want to hold a THIRD vote. Except they sent out a letter to everyone letting them know of their intent to just buy up individual units as they become available and continue to push for a say in how the condominium is run, including jacking up association fees to pay for "Improvements". (They'd probably need 50% of the vote to get their own Condo Board, but the spineless weasels they have now are the ones who let this fox into the chicken coup.)

I'm livid. I was kind of in agreement to sell, but man, I really don't like bullies.
 

Flopper

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Hey, for those following along on this thread, Flopper ,

The second vote came, they still didn't get the result they wanted, so now they want to hold a THIRD vote. Except they sent out a letter to everyone letting them know of their intent to just buy up individual units as they become available and continue to push for a say in how the condominium is run, including jacking up association fees to pay for "Improvements". (They'd probably need 50% of the vote to get their own Condo Board, but the spineless weasels they have now are the ones who let this fox into the chicken coup.)

I'm livid. I was kind of in agreement to sell, but man, I really don't like bullies.
Sorry Joe. That does not sound good. If they buy up individual units, they will be able to control the board eventually and their goals will probably be different than homeowners.
 
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JoeB131

JoeB131

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Sorry Joe. That does not sound good. If they buy up individual units, they will be able to control the board eventually and their goals will probably be different than homeowners.

Maybe, but it would take them a while to buy up 50% of the units. They couldn't even get 50% to vote for the buyout in the first round.

48% of the people who own units rent them out.... and frankly, they were just as keen not to go along with the buyout, because they are doing fine with the status quo.

They cancelled a Zoom meeting on Monday because the last two, they had residents screaming at them.
 

Flopper

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Maybe, but it would take them a while to buy up 50% of the units. They couldn't even get 50% to vote for the buyout in the first round.

48% of the people who own units rent them out.... and frankly, they were just as keen not to go along with the buyout, because they are doing fine with the status quo.

They cancelled a Zoom meeting on Monday because the last two, they had residents screaming at them.
What about the landlords that own the rental units? Are they for or against the buyout?
 
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JoeB131

JoeB131

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What about the landlords that own the rental units? Are they for or against the buyout?

I don't have exact figures. I know the guy who owns two units near mine isn't the least bit interested.

I know the first round of voting has 48% for, 28% against and 24% didn't vote at all, which is why they extended the voting period and offered more money to vote yes. Now they've voted again, and they still didn't get the result they wanted, so they are sticking it out to 8/30.
 

percysunshine

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So throwing this out there because some of you I actually respect your opinions.

I've lived in the same Condo Complex since 2004, but a real estate company is looking to buy us all out and convert to Rental units. This is mostly being instigated by the Condo Manager, who wants to retire and is probably sick of dealing with this nonsense.

The good part is that they are going to buy all the units "as is" for about 20% above current market pricing. This probably works out for me because I really do need to do some remodeling, but I'm not going to bother if the place is being sold to a company that's going to tear everything out to standardize them.

So I'll probably walk away with about $60,000.00. More than enough to put down a payment on a new Condo and start over again.

The bad part- I really don't want to move again or to rent again.

The sale will only go through if 75% of the owners vote to go through with it. At current, 48% of the units are owned by people who don't live here, 52% are owned by people who do. So this is a case where my vote will actually make a difference.

The other factor is that the town is about to rezone a commercial property which will probably have a serious impact on the community. Essentially, the county is trying to force this down the town's throat.

So should I take the money and run or vote against the change?
Take the money.

And then send it to percyshotbabes.com and you will have the time of your life.
 
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JoeB131

JoeB131

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Well, the deal went through, and I am in the process of finding a new place.

They got enough people to change their minds, we have some upset people who might sue, but I don't think they have a leg to stand on.

Flopper
 

strollingbones

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just a hard time to buy right now..totally a sellers market

congrats and good luck
 

Rigby5

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Foolish move on the part of all the owners.
They could have just hired a new manager to replace the retiring one.
Sure they will rake in a good profit from the sale, but they will lose it all when they either buy replacements or end up renting.
 
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JoeB131

JoeB131

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Foolish move on the part of all the owners.
They could have just hired a new manager to replace the retiring one.
Sure they will rake in a good profit from the sale, but they will lose it all when they either buy replacements or end up renting.

Actually, I voted with the owners who wanted to sell.

To recap.

First, I need more space than I have now, for both myself and my business I work out of my home.
Second, the town I live in is about to have a drug rehab center forced down it's throat by the county.
Third, a lot of the owners rent to some fairly shady people. We have about 30 Section 8 renters in the complex, and a couple set up by Catholic Charities... the quality of resident has really taken a nose dive in recent years.
Finally, I'm kind of looking forward to a change. This is the longest I've actually lived at one place, almost a third of my life. Time to find something a bit better.
 

Rigby5

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Actually, I voted with the owners who wanted to sell.

To recap.

First, I need more space than I have now, for both myself and my business I work out of my home.
Second, the town I live in is about to have a drug rehab center forced down it's throat by the county.
Third, a lot of the owners rent to some fairly shady people. We have about 30 Section 8 renters in the complex, and a couple set up by Catholic Charities... the quality of resident has really taken a nose dive in recent years.
Finally, I'm kind of looking forward to a change. This is the longest I've actually lived at one place, almost a third of my life. Time to find something a bit better.

Not logical.
You don't have to sell out to a rental landlord in order to liquidate and move.
You can rent your own condo out and have a renter buying your new place for you.
Your new mortgage will remain constant, while you constantly jack up the rent.
The first year you may pay more than the rent coming in, but in 10 years the rent will be twice the mortgage, and you live for free.
 

Flopper

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Actually, I voted with the owners who wanted to sell.

To recap.

First, I need more space than I have now, for both myself and my business I work out of my home.
Second, the town I live in is about to have a drug rehab center forced down it's throat by the county.
Third, a lot of the owners rent to some fairly shady people. We have about 30 Section 8 renters in the complex, and a couple set up by Catholic Charities... the quality of resident has really taken a nose dive in recent years.
Finally, I'm kind of looking forward to a change. This is the longest I've actually lived at one place, almost a third of my life. Time to find something a bit better.
Does the sale look like it's going thru. As I remember you said there was not enough votes.
 
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JoeB131

JoeB131

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Not logical.
You don't have to sell out to a rental landlord in order to liquidate and move.

No, but if I did so, I'd have to drop $10K in repairs to get market value, as opposed to the investors, who are paying my 20% above market value to buy as-is. Not to mention having to pay a cut to a realtor to sell it.


You can rent your own condo out and have a renter buying your new place for you.

Did the whole landlord thing before. I'd rather listen to ten hours of Trump Speeches or take a bath in a tub full of scorpions.

Your new mortgage will remain constant, while you constantly jack up the rent.

Yes, and I'd also have to deal with all the landlord drama. Hard pass.


The first year you may pay more than the rent coming in, but in 10 years the rent will be twice the mortgage, and you live for free.

First, in ten years, I plan to be retired and not living in this state anymore.

Second, as I've said, I've done the landlord thing in the past. You have to deal with tenants, and even good tenants are a pain.

I could imagine still being a tenant in the last year where the government told renters they could squat for free.
 
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JoeB131

JoeB131

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Does the sale look like it's going thru. As I remember you said there was not enough votes.

Yes, they either bribed or bullied enough tenants into voting yes. or they straight up lied about what the vote was. Either way, it went through.
 

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