The Condo Hotel has probably become the worst real estate investment in America.
According to the Wall Street Journal.
According to the Wall Street Journal.
Primarly in tourist areas, these properties were marketed to people as both a way to enjoy the apartments as well as be able to make money from the rental income when not used.
The hotels were to rent the spaces out, collect a fee for the service, and then give the rest to the owners.
The rental prices are not keeping up with the projections nor are the occupancy rates, thus leaving many investors with negative cash flow.
I asked for a brochure to the MGM property in vegas back in 2005. After careful consideration I decided to stay away from the investment. Needless to say am happy my gut instinct proved right this time.
