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Can A Condotel Be Completed On A 1073?

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Nonsense comments
 
Nonsense comments

OK then Ms. Grant, here is your opportunity. Please clue us all in with all of your vast background and experience in valuing condo hotel units can you tell us what a STAR report is? Where do you get one from? What is its significance? How do you define your competative set? What are departmental expenses? undistributed expenses? How do you treat the FF&E? Who owns the FF&E? What economic factors do you base your adjustments upon? How does the waterfall distribution work? Flagged or unflagged? How does the rental rotation work?

Please, enlighten us on how an abudence of transaction data will address any or all of the issues noted above.
 
................ can you tell us what a STAR report is?.......

I get mine from the National Enquirer in the grocery checkout; did you know that Kanye West was sleeping with a south pole penguin? He is hoping to have a child he can name South West.
 
These are not condo hotel units. A res license would not be valuing a hotel, set up as a condo or otherwise .I appreciate the complexity of what you posted regarding hotel appraising.

These assignments use the descriptive word "condotels" but they are condos. They are condominiums with an HOA, condo docs, bylaws, and and each units is owned individually and has a share in the common elements ( typical residential condo ownership structure). The difference is the bylaws allow short term renting, such as weekly, monthly, Most of them do not rent by by the day but it is possible I assume if bylaws allow it. A management company, which might be associated with a hotel but could be an onsite person or property manager, runs the rentals of those units whose owners choose to put in the rental pool. Renting a unit is voluntary. An owner can live full time in their unit and never rent it out.

The appraiser is appraising one condo unit owned by one individual. They are not appraising the whole building nor all the units in aggregate .
 
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What you are describing is NOT a condo hotel, but rather a residential condo that allows seasonal rentals. You are not listening, or should I say reading, to what is posted in the thread. As I attempted to inform you, you don't know what you don't know. That is not a slight or attack in any way. All it means is when you do not have competence with a particular property type you have no idea what questions to even ask to become competent. That is why when something is outside of someones wheelhouse they should pair up with someone knowledgeable in that area/property type.

To reference seasonal rentals as condo hotels is not an accurate description and as you can see causes confusion among those commenting within the thread and if used in a report would be misleading. Seasonal rentals are permitted under Fannie Mae and other residential lenders. Condo hotels are not. Seasonal rentals may be done on a 1073 form (with additional addenda) while condo hotels may not.

And for the record, condo hotels are comprised of individually owned units, common area ownership with condominium documents, an owners association and every thing else you are trying to describe for condominium ownership. So do office condominiums and warehouse condominiums, but that is besides the point. Condominium is a form of ownership NOT a property type.
 
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See post 46, the OP clarified assignment per his state board a res license is allowed to appraise it

Perhaps the problem is the generic word condotel to desccribe either
 
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http://www.biggerpockets.com/renews...ndotels-an-interview-with-joel-greene-part-i/

An interesting article. Sounds like the key difference is a condo hotel is built, (or converted) as a hotel in design, use, etc, and managed by a hotel with units often "hotel like" in design such as a room, rental pool run by hotel management,

Whereas a condotel as the OP assignment is a condo built as a residential condo, the apartments typically are similar to other condos, difference is the bylaws allow short term renting ( usually one week minimum ), with rental pool run by professional management..(that may or not be a hotel can be and often is a property manager or onsite person)

A simplification, trying to sum up/understand the differences .(for readers increasing their knowledge base including myself) A generic word "condotel" is being used to describe both which is an issue.
 
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A generic word "condotel" is being used to describe both which is an issue.

You are the one using the incorrect word to describe your own subject property. As I have already stated your project is what is known as a seasonal rental property as opposed to what you are finding out is the actual description of a condo hotel. And by the way, Bigger Pockets is not exactly an authoritative source.

As someone who has worked on just a few (actually many) condo hotel projects, i am quite clear as to what the correct terms are and how to perform the analysis, but thanks for clearing things up.
 
Howard, doesn't Fannie define a "condo-hotel" by the nature of the operation of the rental pool, short term leases, and services provided without regard to the legal structure of the property?

The Bonaventure Resort in Weston is legally structured as a condo-hotel. However, there is a condo conversion in west Boca that is operated as a short-term rental facility which meets the Fannie Mae definition of "condo-hotel" even though it is not legally structured as such.

(Add) Looking at transaction history in that west Boca property, anyone who bought 2 years ago did very well. Looks like all cash transactions for single unit purchases, so can't blame it on financing, but prices have rebounded substantially recently.
 
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doesn't Fannie define a "condo-hotel" by the nature of the operation of the rental pool, short term leases, and services provided without regard to the legal structure of the property?

Fannie Mae's definition is not exactly "short term" rentals per se, in that certain types of seasonal rental projects are permitted. Here are links to some pertinent Fannie Mae documents (not that the OP's issue is related to Fannie Mae):

Fannie Mae Ineligible Project Characteristics for Condos - November 10, 2014
Condominium or Cooperative Hotels - July 20, 2006
Ineligible Condominium, Cooperative and PUD Projects - June 29, 2007
 
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