Well it turns out last month I had more repairs on a condo unit. The property management company took care of everything including sending me the bill. In August, it was a $500 hit to repair a fireplace and an issue in the kitchen and some other minor problem.
Fortunately, I haven’t had any major issues and I keep a $7000 cash reserve for this unit that I am considering re-allocating elsewhere, perhaps purchasing more NEA (municipal tax free bond ETF).
At some point, I may need to do a full inspection and do some preventive maintenance work but I’ll wait till the unit becomes vacant.
I have also been sitting on the sidelines now for over a year trying to find another rental unit but the prices are absurd. I am now contemplating buying a rental unit in Europe where my son lives and have him get started in learning the trade. He will need to build a network of property managers, repair techs, and understand taxation and managing a P/L business.
I have been watching videos from YouTuber Reventure Consulting and it looks like Florida is undergoing a massive correction but that’s likely due to the insane insurance rates, HOA condo state mandated fees and endless hurricane battering. It appears investors are calling it quits in Florida but I’m not in that state and wouldn’t want to be in it anyway.
Share The Wealth
Are you in Florida? What’s happening there with real estate? Let me know in the comments below.
I live in Broward County and rent a beachfront condo in an older hotel conversion (1960s tower with 400+ units). We saw an assessment but nothing obscene…basically an advance payment (thousands per unit) for the millions needed to build reserves up to mandated levels. Depending on each HOA, it’s hit or miss as to whether the needed funds amount to a few months payment or the equivalent of a new Porsche 911 (100k+ in some cases). If the HOA has done their job properly stewarding reserves, there shouldn’t be any sticker-shock.
As for hurricanes, in the 40+ years I’ve been in Florida this was one of the quietest years in the tropics. I just renegotiated new insurance and was able to obtain a reasonably-priced policy that provides residual coverage based on the age of the roof vs whole replacement.
Sure, home values have dropped, supply is creeping upward; however, the narrative of doom and gloom is overstated. This won’t be 2007 much less 2018.
Well in Texas, Progressive just pulled out of issuing any more home owners insurance policies citing too many damaging events: fires, tornadoes, hurricanes, wind, etc.
https://www.tpr.org/news/2024-09-09/progressive-is-the-latest-insurance-company-to-stop-offering-homeowner-coverage-in-texas
California is already a no go for reasonable insurance too.
I’m not sure where this real estate market is going except that the numbers (ROI) don’t make sense right now anywhere I looked, housing is too over valued and rents are not high enough. It only works if you have properties you bought years ago.