Why are Legacy Dunes Condos in Kissimmee So Cheap?
Reason #1: Legacy Dunes Condo Association Fees are Very High for What You Are Getting
Now I’m not against condo fees, I think they’re very important and are more than justified (most of the time). Legacy Dunes Condos however, not only charge high condo association fees but they don’t even justify it by including much. The condo fees cover the common areas, and trash removal. The fees are different per floor plan however paying almost $200 per month for a 1/1 600 sq ft condo probably doesn’t excite many vacation rental investors, especially considering the nightly rates are low. . . we’ll talk about that.
Reason #2: The Legacy Dunes Condo Association Delinquency Rate at One Point was Rumored to be at or Exceeding 15%
With over 400 condos in the complex this shouldn’t necessarily raise too many eyebrows but the reason I bring up this point is because even though it was in the past, that means that it’s possible that it could happen again. You definitely take this risk in any community however because many of the owners in Legacy Dunes Condos are not vacation rental investors (they are primary residents) there’s probably a higher amount of mortgaged condos in the community than some other resorts. If we were to ever run into an economic collapse again, people with mortgages are the first to go delinquent on their HOA fees. As of now, the association appears to be completely stable, just keep that fact in mind and make sure you do your research.
Reason #3: The Nightly Rental Rates Are Low
If you check on the rental rates on VRBO of what an average one bedroom condo is generating in rental income it’s actually very low. It’s averaging $65-$70 per night. When you add that in on our spreadsheet with all of the expenses you’re at a loss unless you can keep it fully booked almost all year (50 weeks). We know that one bedrooms are incredibly hard to rent because of all the hotel competition. People in that price range are usually wanting to stay in hotels in Orlando. Overall, if you’re going to spend $75,000 cash on a one bedroom in Legacy Dunes you would be better off using that as a 20% down payment on a townhouse in Windsor Hills and taking a mortgage. You will still do better because of the rental rates.
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