Looking for a sample condotel appraisal

[Lloyd Bonafide]

Fannie Mae considers some types of condotels to be non-residential properties.


https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2006/06-12.pdf


Licensed or certified residential appraisers should be wary, in my opinion.

 

[Howard Klahr]

Brian,

Although I do not have a report about an individual unit, I have been involved in several regarding the entire development. If you send me your email address, I have a collection of articles you may be interested in. I have posted about this topic in the forum several time. This is clearly not similar to short term rentals, a time share interest or other quasi-residential properties. In order to properly evaluate the income attibutable to an individual unit you often have to forecast the operations of the whole development to derive the pro-rata share attributable to an individual unit.

Many have attempted to over simplify this property type, but it is clearly a hotel first (commercial) and does not exhibit the characteristics of residential property (1 - 4 unit residential) - read the condo documents.

 

[JRS at OBX]

Could you technically live in the condotel if you wanted to?

 

[Howard Klahr]

Could you technically live in the condotel if you wanted to?

It depends on what is permitted in the condo documents, a few yes, most no (if you define live as occupy year round).

 

[Couch Potato]

Could you technically live in the condotel if you wanted to?

Obviously there may be exceptions, but the general answer is no. Owner use is usually highly restricted. A hotel company runs the project and gives the owner a split of the nightly rental fees for their unit.

 

[Mztk1]

So would a condo-hotel appraisal count as experience to your certified general certification?