Is it worth it owning a condo in Rocky Point? We are looking into possibly buying a 2bdrm 2 bath in Las Palomas and renting it out for the times we aren't planning on going down. What are the pros/cons of this if you wouldn't mind sharing any input. Thanks!
Everyone's definition of "worth it" is different. Las Palomas has very strict rules about furnishings in their rental units and owners using their own rental units, how they are allowed to be advertised, etc. Make sure you know exactly what the rules are at Las Palomas for owners in the rental pool. I do not own a unit at Las Palomas, but I have a 2bd/2ba at another resort. The first year we were owners we rented. At first it didn't bother me so much and the rental income checks were nice. But after awhile I got tired of taking my personal items out of my lock off each time we came down and then having to lock them up again when we left. If you need the money from the rental income then that changes everything. If you do not need the rental income and plan on using your unit a lot, then the luxury of having clothes in the closets, personal items in the bathrooms, and cold beer in the refrigerator every time you walk in is, in my opinion, a luxury that you cannot put a price on. Just my two cents . . . .
What makes a condo worth owning? If you enjoy your time in Rocky Point and would rent to help offset the cost of ownership, it can be a wonderful second home. Owning a condo in the hopes of covering the expense through rental income will be very difficult.
Please know that Las Palomas is a very strict resort when it comes to owner managed rentals. They also don't allow many things such as having your own Telmex phone line or having your own satellite setup such as Dish or Direct tv. Confirm with the resort any such restrictions and understand that things may change in either direction as new HOA board members are elected.
Should you get to the point where you make an offer on a condo the recent change to immigration law requires you to have residency and a RFC number to complete the transaction. Closing costs are very high in Mexico as are the initial costs to set up a bank trust.
When dealing with pricing I would advise anyone to consider what the current market conditions are and not fall victim to the promises of what the market may be in the future. Although I love Rocky Point, it remains a city that does not have any jobs or industry (other than tourism) that would allow anyone to afford the costs associated with a condo on Sandy Beach. Are you prepared to ride things out if there is a slump in tourism? Are you prepared to pay ever increasing HOA dues if there are defaults from other owners?
If you love the city for what it is today, it is certainly a much more affordable option than any beachfront property in the United States. Do your independent research regarding immigration, home value, bank trust and closing costs before making any offer. Doing your homework and making an informed decision will allow you to enjoy many years of home ownership here in Peñasco!
I purchased a 2bed/2bath in late 2012 and have been renting as well as going down as often as we can :) It is definitely nice to have the rental income, and we have not had any major issues with renters (damage/complaints/etc), but mis is correct that is would be REALLY nice to be able to leave all our personal belongings "out and about".
We have a 5 year balloon (as many of the condo sales do) and have been saving on the side so we can try to pay it off in full by then, or at least get it down low enough that we can pay it off in full via a "personal loan" in the US. That would let us at least have full ownership (via banktrust) as opposed to now, where we are still have a private loan with the original owner. Once we are in that circumstance, we plan to take it out of the rental pool, which would also let us think about making other improvements to the unit.
I have owned 4 units down there. Sonoran was easy. LP hard and Bella easy. If you aren't going to use it a lot, just rent. There is a lot of paper work and other things. I like having my own stuff and be able to take my dog. But Jack and I are getting older and the up keep is too much. Remember it is on the ocean. Our kids live in LA and have no time. 20 years ago great idea, at 70 crazy.
I have owned 4 units down there. Sonoran was easy. LP hard and Bella easy. If you aren't going to use it a lot, just rent. There is a lot of paper work and other things. I like having my own stuff and be able to take my dog. But Jack and I are getting older and the up keep is too much. Remember it is on the ocean. Our kids live in LA and have no time. 20 years ago great idea, at 70 crazy.
I BOUGHT A 2 BDRM. 2 BA. CONDO IN OCTOBER OF LAST YEAR. TYPICALLY I WAS GOING DOWN ABOUT 4 TIMES A YEAR FOR A WEEK AT A TIME. THE COST WAS ABOUT $1150.00 A WEEK TO RENT A 1 BDRM. $1150.00 X 4 = $4600.00. MY CONDO FEES ARE $365.00 PR MO. SO $4380.00 A YEAR, DAM NEAR A WASH AND AS FOLKS MENTIONED IN OTHER POSTS I CAN LEAVE MY PERSONAL EFFECTS. HAVE NOT THOUGHT ABOUT RENTING AT THIS TIME. CURRENTLY DOING SOME PAINTING AND UPGRADES. I'LL DEFINITELY
BE STAYING LONGER THAN 4 WEEKS OUT OF THE YEAR.
I DO HAVE TO PAY THE ELECTRICAL HOWEVER WHEN I'M THERE MY ELECTRICAL IN TUCSON IS VERY LOW SINCE I'M NOT USING IT. THE RATES FOR ELECTRICITY IN RP. ARE REASONABLE IN COMPARISON WITH TUCSON, SO I AM GOING TO SAY THE ELECTRICAL IS DAM NEAR A WASH.
MAYBE A YEAR FROM NOW I'LL POST WHAT AN ASS I MADE OF MYSELF. (DON'T KNOW WHY THE TEXT JUMPED SIZE)
I would also mention if you have your unit in the rental pool it will get beat up over time with renters coming and going. The more turnover the more damage. That matters to me but for some it's not really a concern.
Based on everything I have heard I would not consider Las Palomas. I would strongly consider the Sonorans by Las Palmas or Las Palmas (Not Las Palomas). I have had rentals only and live and rent condos as well. Now I own where you can't rent short term and love it the best.
Another option is to buy an 1/8th share in a beachfront property in Las Conchas. 8 partners are the beneficiary of a trust and you get your week every 8 weeks. Every year the schedule rotates one week so everyone gets their share of the popular spring breaks, 4th of July, memorial day weekend. The partners pool quarterly dues to keep the property in resort condition. Each partner has a 4x6 lockup in the garage so you can keep all your toys, beach chairs and such on property.
As a busy working couple, sitting down and planning time away for ourselves is usually last on the list. But when our week comes up, we grab a few clothes and off we go.
And did i say you could be in a 3000sf house, on the beach........
Let me know if you want any more info on this kind of option
They vary with the age and quality of the house and motivation of the seller as you may expect. I think we have one in our place for sale for $100k?. Some bought as high as $225, one guy sold at $70 as he was retiring, moving out of state so just wanted out.
Quarterly dues are $1300 each. We've had a couple assessments for an AC here or reinforce the seawall there... the good news is those costs are divided by 8!
Most members don't rent if they cant use their share. potential renter damage not worth it. We swap weeks pretty well, say a partner wants to do a particular holiday or family celebration of some kind on a particular weekend
On the rare occasion, we require a healthy rental rate so we will hopefully get a family that appreciates quality and takes care. We don't allow 4 families with kids or a dozen spring breaker's to rent the place.
We have a personal relationship with our management company and they bend over backwards to take care of anything that comes up
The dues can be expensive if you don't use your time but if you take advantage, it's a pretty cheap little slice of heaven each time :-)
Good stuff...thanks! I have never understood why this concept of ownership wasn't more popular. Unless you are loaded with money sharing ownership and maintenance of a vacation property makes so much sense. Do your quarterly dues include things like property taxes, homeowner's insurance, bank trust fees, etc? Are utility usages included as well or are they tracked and billed separately? Thanks!
Las Palomas is a completely different resort from a few years ago. The HOA's funds are very healthy. Major upgrades have been completed in the last 2 years (ex. paint and rails). If you rent, the resort is ranked #1 on trip advisor. The resort has a strong rental market compared to every other resort in rocky point. If you refer your guests to the rental operator, you keep 75% of the rental income. I would check out the grounds of a few condo resorts and determine what appeals to you. Best!
Las Palomas is a completely different resort from a few years ago. The HOA's funds are very healthy. Major upgrades have been completed in the last 2 years (ex. paint and rails). If you rent, the resort is ranked #1 on trip advisor. The resort has a strong rental market compared to every other resort in rocky point. If you refer your guests to the rental operator, you keep 75% of the rental income. I would check out the grounds of a few condo resorts and determine what appeals to you. Best!
That is rather amusing to me. In order to keep only 75% you have to do the referral. What do you get to keep on a non-referral? 50%? Seems to me the overhead cut is way too high.
That is rather amusing to me. In order to keep only 75% you have to do the referral. What do you get to keep on a non-referral? 50%? Seems to me the overhead cut is way too high.
Too high? The non-referral rate for most, if not all resorts is 65/35. You do realize that 35% has to cover everything needed to provide rental services. Who do you think pays employee salaries and benefits including front desk, maintenance, housekeeping, supplies such as toilet paper, soap, paper towels, cleaning products, coffee, reservation software costs, telephone and internet, rent, taxes, and so much more, etc.?
Too high? The non-referral rate for most, if not all resorts is 65/35. You do realize that 35% has to cover everything needed to provide rental services. Who do you think pays employee salaries and benefits including front desk, maintenance, housekeeping, supplies such as toilet paper, soap, paper towels, cleaning products, coffee, reservation software costs, telephone and internet, rent, taxes, and so much more, etc.?
The figures you quote are for owners who sign up with a property management firm and who wish to voluntarily use their services. The legality of forcing an owner to pay a commission to an agency when they wish to self rent has been in dispute for years. The most recent challenge to this was at the Sonoran Sun. After owners presented legal opinions from several prominent Mexican attorneys to the HOA, the exclusive given to Seaside was dissolved and owners are free to use a management company of their selection or self manage and pay an impact fee to the HOA.
Responding to the Sonoran Sun comment: Not true that owners can use any management company. They can use the onsite company (currently Seaside) or rent totally on their own. They are not allowed to use a different management company. Actually, also not true that the legal opinions favored one side or the other. There were legal opinions presented by both sides which supported both sides. In the end, a majority vote of owners determined that they may rent as "By Owner" if they choose.
he figures you quote are for owners who sign up with a property management firm and who wish to voluntarily use their services. The legality of forcing an owner to pay a commission to an agency when they wish to self rent has been in dispute for years. The most recent challenge to this was at the Sonoran Sun. After owners presented legal opinions from several prominent Mexican attorneys to the HOA, the exclusive given to Seaside was dissolved and owners are free to use a management company of their selection or self manage and pay an impact fee to the HOA.
Also, we were talking about rental company operators. Go back and read the thread from Dry Heat.
Also, we were talking about rental company operators. Go back and read the thread from Dry Heat.
Las Palomas forces owners to rent through their rental office even if the owner does not want their assistance. Paying a high percentage to a rental company when you delivered the client is insanity.
Las Palomas forces owners to rent through their rental office even if the owner does not want their assistance. Paying a high percentage to a rental company when you delivered the client is insanity.
I'm not defending Las Palomas by any stretch of the imagination, but who do you think services those clients and don't they deserve a fee?
You do realize that 35% has to cover everything needed to provide rental services. Who do you think pays employee salaries and benefits including front desk, maintenance, housekeeping, supplies such as toilet paper, soap, paper towels, cleaning products, coffee, reservation software costs, telephone and internet, rent, taxes, and so much more, etc.?
I would hope most of that is covered in the HOA dues that are paid monthly. Most of the rest of the stuff you quote is paid for by the renter. IMHO, 35% is crazy high.
I'm not defending Las Palomas by any stretch of the imagination, but who do you think services those clients and don't they deserve a fee?
That's the thing... I've rented "under the table" before when a friend booked a unit for us and it can be a mess. It's Mexico we're talking about here, inevitably something always goes wrong with a rental and it's better to just be able to call the front desk and have them come fix it. Also you don't have to pretend to be a "friend of the owner", etc... I think as an owner, your probably better off doing this anyway. You'll get more legit renters (with credit cards on file) if something goes wrong.
That's the thing... I've rented "under the table" before when a friend booked a unit for us and it can be a mess. It's Mexico we're talking about here, inevitably something always goes wrong with a rental and it's better to just be able to call the front desk and have them come fix it. Also you don't have to pretend to be a "friend of the owner", etc... I think as an owner, your probably better off doing this anyway. You'll get more legit renters (with credit cards on file) if something goes wrong.
BEN THAT IS VERY GOOD ADVISE. I RECENTLY POSTED THAT I BOUGHT A CONDO IN OCTOBER, UNSURE IF I'LL RENT OR NOT. I WOULD APPRECIATE ANY PERLS OF WISDOM PRIOR TO MY EVENTUAL SCREW UP. THANKS
I'm not defending Las Palomas by any stretch of the imagination, but who do you think services those clients and don't they deserve a fee?
I agree that a business deserves to be compensated for their services. What I don't agree with is an HOA who is not a financial partner in my property telling me that I can only rent via their service and at a price or percentage they dictate.
I am not suggesting anybody should rent under the table. I feel every owner should be in compliance with both immigration and tax law. The fact that an owner should feel the need to lie about a renter (encouring them to say they are friends or family) is also insane. It should be the owners decision if they elect to hire a property management company or rent on their own.
I would hope most of that is covered in the HOA dues that are paid monthly. Most of the rest of the stuff you quote is paid for by the renter. IMHO, 35% is crazy high.
Mis2810 is correct. Most of the stuff mentioned by her as included in the 35% fee is NOT covered by HOA dues. Other than maybe the phone or internet.....that is included in HOA dues at some resorts. And even at that, the phone is usually just for calling the front desk or other rooms.
I agree that a business deserves to be compensated for their services. What I don't agree with is an HOA who is not a financial partner in my property telling me that I can only rent via their service and at a price or percentage they dictate.
I am not suggesting anybody should rent under the table. I feel every owner should be in compliance with both immigration and tax law. The fact that an owner should feel the need to lie about a renter (encouring them to say they are friends or family) is also insane. It should be the owners decision if they elect to hire a property management company or rent on their own.
Obviously, you do not understand how an HOA works. Hopefully, you would not purchase at a place knowing that you had to use their service at the price and percentage they dictate. But if you did (i.e., you did not do your due diligence), you could go the route Jim talked about.
Obviously, you do not understand how an HOA works. Hopefully, you would not purchase at a place knowing that you had to use their service at the price and percentage they dictate. But if you did (i.e., you did not do your due diligence), you could go the route Jim talked about.
I fully understand how an HOA works. Las Palomas does not allow self rentals. I find it ridiculous that an owner at Las Palomas can generate a lead to rent their own property and then be forced to hand the customer off to an in-house agency. The owner is then charged a high commission for the very deal that they created.
If a rental agency or an HOA did not contribute financialy to the purchase of my condo they should only share in the reward or profit of said condo when I elect to use their services.
I am not some rogue condo owner who feels they can do anything they want. I practice what I consider to be a good neighbor policy. My condo should be held to the same occupancy restrictions, tax laws and other policies as any condo listed with a rental agency. That said, it is my absolute right to rent my own property. Quoting the overhead of an agency that an owner does not want to do business with does not justify the commission they are forced to pay.
In Mexico an HOA is a not for profit entity. Peñasco is not located in the United States and the laws regarding HOA's are not the same as they are in the states. You can write HOA regulations restricting self rentals but if they run contrary to Mexican law they are invalid.
I did lengthy due diligence on every resort before purchasing. I hired a prominent Mexican attorney and a separate Notario early in the process due to the unfortunate losses incurred by other buyers. I did not rely on any statement of a real estate agent as though it was fact. After all, they were attempting to sell a property and earn a commission. What was clear from my due diligence is that there are many owners and HOA's who try to circumvent Mexican law.
I understand there a number of owners who have found value in the services of a rental agency. There are also a growing number of owners who no longer find value in these services and prefer to manage their financial investment independently.
That is rather amusing to me. In order to keep only 75% you have to do the referral. What do you get to keep on a non-referral? 50%? Seems to me the overhead cut is way too high.
I think many owners are happy with Las Palomas. They have the highest ranking on Trip advisor, have the highest % of rentals, have the highest avg. of rental income and give owners a very favorable % if they refer their own guests (75% of the rental income). For the 25% the resort takes, that includes 24 hotel services, daily maid service, 24 maintenance service and other benefits. I don't think 25% or 35% (the % the resort keeps if they refer the guest) is greedy or unfair. Owners benefit from everyone not undercutting each other by self renting. We all have a minimum rate we can charge, we all have to keep our units current and in great shape (units are frequently inspected). I think having a common base helps with having a great client experience for most guests (maybe this is one reason why the resort is ranked #1 among visitors (tripadvisor). Of course nothing is perfect... no one is shooting for that goal. Everyone will have their own preferred way of doing things. However among a development with hundreds of owners, things are good now.
I understand there a number of owners who have found value in the services of a rental agency. There are also a growing number of owners who no longer find value in these services and prefer to manage their financial investment independently.
That's great for owners who have time to do this on their own - if they want a full month of rentals all the time it is extremely time consuming. But many owners don't have time to coordinate cleanings, make sure their cleaning people have supplies, answer all the booking requests and collect money on VRBO, HomeAway, FlipKey, AirBnb, Facebook, etc. I would have to say the majority of owners like to sit back and know all that is taken care of and just wait for their 65% checks to be sent every month.
Back to your other comment - HOA dues does not pay for rental company employees and the rental companies costs. HOA dues covers the water bill, maintenance of the common areas, and whatever else is included - but in no way does dues cover rental company expenses - that would be ridiculous. How would a non-renting owner feel about having his monthly dues used to pay for a rental company maintenance employee?
That's great for owners who have time to do this on their own - if they want a full month of rentals all the time it is extremely time consuming. But many owners don't have time to coordinate cleanings, make sure their cleaning people have supplies, answer all the booking requests and collect money on VRBO, HomeAway, FlipKey, AirBnb, Facebook, etc. I would have to say the majority of owners like to sit back and know all that is taken care of and just wait for their 65% checks to be sent every month.
Back to your other comment - HOA dues does not pay for rental company employees and the rental companies costs. HOA dues covers the water bill, maintenance of the common areas, and whatever else is included - but in no way does dues cover rental company expenses - that would be ridiculous. How would a non-renting owner feel about having his monthly dues used to pay for a rental company maintenance employee?
I have no argument with anyone who uses a rental agency or property management firm. They clearly provide value to many people for a variety of reasons. My argument is against an owner being forced to use a rental agency or being forced to give up a portion of their earnings if an owner elects to rent on their own.
I never discussed HOA dues. We are discussing Las Palomas only. My understanding is that the HOA at Las Palomas runs the rental program. This was the primary reason I elected to not purchase at that resort. Owners at Las Palomas are NOT permitted to rent on their own and MUST rent through the rental program which is administered the by the HOA as a separate for-profit entity. This was the basis for my comment...
I have no argument with anyone who uses a rental agency or property management firm. They clearly provide value to many people for a variety of reasons. My argument is against an owner being forced to use a rental agency or being forced to give up a portion of their earnings if an owner elects to rent on their own.
I never discussed HOA dues. We are discussing Las Palomas only. My understanding is that the HOA at Las Palomas runs the rental program. This was the primary reason I elected to not purchase at that resort. Owners at Las Palomas are NOT permitted to rent on their own and MUST rent through the rental program which is administered the by the HOA as a separate for-profit entity. This was the basis for my comment...
What Las Palomas probably realized is that they're going to incur on site costs (security, common area maintenance, etc) from all renters. Now when somebody uses another agency, or pockets all expenses, how does that get paid for?
Also, Dry Heat mentioned that Las Palomas is the highest ranked property on Tripadvisor. This is probably because they're able to offer guest assistance on site, have a consistent product for renters, etc... What many guests may not understand is if you rent a unit through Oceano, at say Bella Sirena, and then something goes wrong, they can't just go to the front desk and get it taken care of. To their amazement, they need to either place a call (do they have cell service?), or trek across town to tell somebody at the office over by Las Conchas. Of course the problem probably isn't addressed until their vacation is over. And there you have it, 2* tripadvisor review.
(Las Palomas) the resorts bylaws state that if you rent, you must rent via the approved rental company. Neither the rental company or the HOA are related (the HOA is controlled by the owners and the rental operator is privately held). An owner who rents must meet the minimum furnished requirements for their condo (ie. it has to be in great shape, flat screen tv's, bedding, etc). If one is behind on their HOA dues, one cannot rent. Even better for those who own at Las Palomas... the impact collected by the rental operator has provided over 10% of the HOA's total budget. Again, the HOA does not run the rental operator (two different companies that are not related). At one time they where, however this has not been the case for at least 4 years. Each phase is on pace to have over 1m in reserves, keep in mind that we just have over 100k a few years ago. All buildings have new railings, new paint and we have plenty of money to offset any major projects. Non rental owners are happy that the rental operator is contributing their fair share for impact on the resort. When you have 800+ units you have to have some sort of guidelines regarding rentals and rules in general. So far I would say things are a lot better at this resort than in years past. The resort had over 100 active listings a few years ago and now we are less than 30. Nothing is perfect and we still have plenty of room for improvement. But when we compare to prior years, life is A LOT better.
What Las Palomas probably realized is that they're going to incur on site costs (security, common area maintenance, etc) from all renters. Now when somebody uses another agency, or pockets all expenses, how does that get paid for?
Also, Dry Heat mentioned that Las Palomas is the highest ranked property on Tripadvisor. This is probably because they're able to offer guest assistance on site, have a consistent product for renters, etc... What many guests may not understand is if you rent a unit through Oceano, at say Bella Sirena, and then something goes wrong, they can't just go to the front desk and get it taken care of. To their amazement, they need to either place a call (do they have cell service?), or trek across town to tell somebody at the office over by Las Conchas. Of course the problem probably isn't addressed until their vacation is over. And there you have it, 2* tripadvisor review.
I agree with your logic Ben but what has been left out of the discussion thus far is that Las Palomas is not a hotel nor is it time share. These condos are independently owned. Some guests may prefer to book through an agency knowing that problems can be addressed by on-site staff while other guests understand the condo is owner operated and problems must be addresed by the owner.
Dry Heat has a valid point about the ratings on Trip Advisor but it only addresses one part of the equation. Is there a website where we can ascertain owner satisfaction? In this thread there is commentary by a previous owner at LP who indicated renting their unit was a headache.
The thread is not meant to represent a bashing of rental agencies or Las Palomas. It is about disclosing what existing condo owners know to assist someone new to the community with information related to owning in RP.
I feel that we should encourage people to come to Rocky Point for what it is TODAY and not lure people with promises of what the future holds. Wouldn't it be a great place if potential buyers were given honest and complete information about things so they can make an informed decision about their purchase? Doesn't that truly make Peñasco a better place?
(Las Palomas) the resorts bylaws state that if you rent, you must rent via the approved rental company. Neither the rental company or the HOA are related (the HOA is controlled by the owners and the rental operator is privately held). An owner who rents must meet the minimum furnished requirements for their condo (ie. it has to be in great shape, flat screen tv's, bedding, etc). If one is behind on their HOA dues, one cannot rent. Even better for those who own at Las Palomas... the impact collected by the rental operator has provided over 10% of the HOA's total budget. Again, the HOA does not run the rental operator (two different companies that are not related). At one time they where, however this has not been the case for at least 4 years. Each phase is on pace to have over 1m in reserves, keep in mind that we just have over 100k a few years ago. All buildings have new railings, new paint and we have plenty of money to offset any major projects. Non rental owners are happy that the rental operator is contributing their fair share for impact on the resort. When you have 800+ units you have to have some sort of guidelines regarding rentals and rules in general. So far I would say things are a lot better at this resort than in years past. The resort had over 100 active listings a few years ago and now we are less than 30. Nothing is perfect and we still have plenty of room for improvement. But when we compare to prior years, life is A LOT better.
I must say that LP is one of the better looking resorts and I appreciate the system you are trying to keep in place to maintain standards. At the time of my purchase the rental program at LP was indeed run by the HOA and I did not feel it was a good fit with my needs. I am glad that has changed.
Good stuff...thanks! I have never understood why this concept of ownership wasn't more popular. Unless you are loaded with money sharing ownership and maintenance of a vacation property makes so much sense. Do your quarterly dues include things like property taxes, homeowner's insurance, bank trust fees, etc? Are utility usages included as well or are they tracked and billed separately? Thanks!
Yup, everything included!
Our management company sends out a quarterly cost report. We keep an eye on how we are doing against the budget.
By the way, 8 partners times 6 weeks each = 48. We shut the place down for 4 weeks in August. No one really likes august for the heat and the cost of running the AC is absurd. We forecast for and spend 4$k to $5k during those 4 weeks for general maintenance.
Wow, I got a little brain damage reading through all of the condo, HOA, rules and stuff above.
Out 8 share has a great operating agreement as a start. When we have an issue, we send around an email to the 8 partners. After a couple volleys, its resolved. No lawyers or legal opinions.
Easy peasy :-)
I have owned rental in Penasco since Spa. I never rented under the table. Sure I had things broken or turn up missing but each of my property manager handled it just fine. I did have 2 units at LP but I think they were a problem because it was such a large complex. I still have friends there and they say it all worked out. I like the smaller places like Spa. Had it 6 yrs and very little damage(one bedroom). Bella seems to get a quieter different crowd. I just could not justify having anything down there if I didn't rent it. We just do not go down that much. Our trips are based on how much fish we have in the freezer.
The ONLY property I would consider is Princesa. It is solid concrete. This includes walls ceilings, hallways and the like. Only a fool would buy at any other property and live above the third floor. All other properties have wood. Some of them are built with a lot of wood and drywall. Wait till one catches fire. The fire department does not have ladder that goes higher than 40'. How are you going to be saved if your condo is on fire and you are on the patio or balconey? Those about the 4th floors are going to have problems! Then, there is no place for a fire truck to park or access at any of the Sonoran properties on Sandy Beach. Sonoran Spa and the others are curved towards the beach. The clearance on the sides of these projects are not wide enough for a fire truck. I'd hate to be on the 9th floor when some drunk renter tips over a candle or lights a firecracker inside.
I also would not buy a property where each condo has there own water heater. Water heaters bust. Everyone below is going to be saturated with hot water until somebody finally realizes there is a problem. Water cascades when it flows towards the ground. If a water heater leaks on the 9th floor, it is going to damage dozens of condos below. Do you want to rely on your neighbor to be there when their water heater leaks? Nope! Do you think insurance will cover this? Good luck if the damage was caused by another condo. Do you think your neighbors who rent fulltime and never come down will have insurance? Nope! If they do have insurance, do you think there policy limits will cover damage to 10-20 condos down below? No way! Do you want to completely re-build your condo after a massive water leak and then hope none of the dozens of condos above you have solid water heaters that won't soon leak? For get about it! Do you think you can EVER get all of the moisture out of the drywall and wood walls being on the beach? ABSOLUTELY NOT! Can you tell I own at a Sonoran property and wished I bought a condo at Princesa? YES!
There are no water heaters at Princesa. The water is heated in the cistern and then piped to each condo.
The ONLY property I would consider is Princesa. It is solid concrete. This includes walls ceilings, hallways and the like. Only a fool would buy at any other property and live above the third floor. All other properties have wood. Some of them are built with a lot of wood and drywall. Wait till one catches fire. The fire department does not have ladder that goes higher than 40'. How are you going to be saved if your condo is on fire and you are on the patio or balconey? Those about the 4th floors are going to have problems! Then, there is no place for a fire truck to park or access at any of the Sonoran properties on Sandy Beach. Sonoran Spa and the others are curved towards the beach. The clearance on the sides of these projects are not wide enough for a fire truck. I'd hate to be on the 9th floor when some drunk renter tips over a candle or lights a firecracker inside.
I also would not buy a property where each condo has there own water heater. Water heaters bust. Everyone below is going to be saturated with hot water until somebody finally realizes there is a problem. Water cascades when it flows towards the ground. If a water heater leaks on the 9th floor, it is going to damage dozens of condos below. Do you want to rely on your neighbor to be there when their water heater leaks? Nope! Do you think insurance will cover this? Good luck if the damage was caused by another condo. Do you think your neighbors who rent fulltime and never come down will have insurance? Nope! If they do have insurance, do you think there policy limits will cover damage to 10-20 condos down below? No way! Do you want to completely re-build your condo after a massive water leak and then hope none of the dozens of condos above you have solid water heaters that won't soon leak? For get about it! Do you think you can EVER get all of the moisture out of the drywall and wood walls being on the beach? ABSOLUTELY NOT! Can you tell I own at a Sonoran property and wished I bought a condo at Princesa? YES!
There are no water heaters at Princesa. The water is heated in the cistern and then piped to each condo.
1. What condo development along Sandy Beach (taller than 30 ft) is wood frame construction?
2. What development does not have a drainage system in the laundry room to help alleviate a water leak from a hot water heater?
3. A 40 gallon water heater will leak down dozens of floors?
4. Why would insurance not cover water damage?
5. Do you have a report from the fire marshal stating they are not able to access any of the Sonoran Properties?
6. Do you have documentation showing that rental owners don't carry insurance?
The Dubai tower fire showed the shocking vulnerability of glass/steel and concrete Pigeon coops...err..condos....and the need for great emergency services.Dubai even has jetpacks for firefighters.We on the other hand can bungee a few ladders on the Russ bluehair van and get up to the fourth floor.
The collapse of the Taiwanese tower last week also was worrisome. A 6.5 is very possible in our area....the dominos will be falling at that point.Buy a existing house in Unconscious,Miramar,S.T. etc....
The ONLY property I would consider is Princesa. It is solid concrete. This includes walls ceilings, hallways and the like. Only a fool would buy at any other property and live above the third floor. All other properties have wood. Some of them are built with a lot of wood and drywall. Wait till one catches fire. The fire department does not have ladder that goes higher than 40'. How are you going to be saved if your condo is on fire and you are on the patio or balconey? Those about the 4th floors are going to have problems! Then, there is no place for a fire truck to park or access at any of the Sonoran properties on Sandy Beach. Sonoran Spa and the others are curved towards the beach. The clearance on the sides of these projects are not wide enough for a fire truck. I'd hate to be on the 9th floor when some drunk renter tips over a candle or lights a firecracker inside.
I also would not buy a property where each condo has there own water heater. Water heaters bust. Everyone below is going to be saturated with hot water until somebody finally realizes there is a problem. Water cascades when it flows towards the ground. If a water heater leaks on the 9th floor, it is going to damage dozens of condos below. Do you want to rely on your neighbor to be there when their water heater leaks? Nope! Do you think insurance will cover this? Good luck if the damage was caused by another condo. Do you think your neighbors who rent fulltime and never come down will have insurance? Nope! If they do have insurance, do you think there policy limits will cover damage to 10-20 condos down below? No way! Do you want to completely re-build your condo after a massive water leak and then hope none of the dozens of condos above you have solid water heaters that won't soon leak? For get about it! Do you think you can EVER get all of the moisture out of the drywall and wood walls being on the beach? ABSOLUTELY NOT! Can you tell I own at a Sonoran property and wished I bought a condo at Princesa? YES!
There are no water heaters at Princesa. The water is heated in the cistern and then piped to each condo.
LAST WEEK I RESPONDED TO BEN 21 THANKING HIM FOR INFO ON BEING A NEW CONDO OWNER. THE ADVISE WAS NOT TO RENT UNDER THE TABLE (GOOD ADVISE). I ALSO ASKED IF THERE WERE ANY OTHER PEARLS OF WISDOM.THE RESPONSE WAS OVERWHELMING. DUE TO ALL YOU FOLKES I AM MUCH MORE EDUCATED. I THANK EVERYONE WHO RESPONDED.
I INITIALLY WANTED TO BUILD A HOUSE, I WAS ADVISED THAT I SHOULD BE THERE AS MUCH AS POSSIBLE DURING THIS ENDEAVOR HENCE THE CONDO. NEED ADVISE ON REALTORS WITH THIS TYPE OF EXPERIENCE. WANT A PLACE ON THE BEACH (GRAND CHILDREN) WITHIN SAY 15 MILES FROM TOWN. I INTEND ON UPGRADING THE CONDO. DURING THE BUILD PERIOD WITH THE IDEA OF SELLING OFF WHEN THE BUILD IS COMPLETE.. I AM NOT A COMPLETE IDIOT (NOTICE I SAID COMPLETE IDIOT). WHEN I BOUGHT THE CONDO I MADE SURE IT WAS MY KIDS NAMES. AGAIN I THANK ALL THE PEOPLE THAT RESPONDED TO MY LAST POST. WITH ALL YOU GUYS RESPONDING I AM SURE YOU'LL GUIDE ME. THANKS ALL.
Hey The partner thing can work very well. Some years back we did the same thing with 7 other friends or business associates and it worked great. Our week started on Friday afternoon about 4 and out on friday am by 11 soa a cleaning service had time to come in every week. Using a cleaning service allows you to just pick up and leave. There can be no squabel that you did not do a good clean up. We also did the rotation and trades etc and no problem.
We all knew the schedule of who ,when and if were not going or leaving early let the other folks and they could go early or some one else could go.
Now with E-Mail it would be a piece of cake. We would all get together a couple of times a year or sooner if needed to discuss any issues or needs. If a major item was needed some one would be authorized to go and buy it.
One nice thing for self employed is that it kind of makes you take off and rest at least every 8 weeks.
Go for this in my mind.
1. What condo development along Sandy Beach (taller than 30 ft) is wood frame construction?
Answer: The Sonoran projects have wood 2'x4's every other wall. Concrete wall, then wood, then concrete, etc. I watched the Sonoran Spa get built from the ground up.
2. What development does not have a drainage system in the laundry room to help alleviate a water leak from a hot water heater?
Answer: A drain cannot hold rusty water very long without clogging. Remember, not only water drains out a rusty tank but particales of rusted metal. Besides, when do you think the last time ANYONE at any of the Sandy Beach projects cleaned out their drains? It is resonable to think they are full of dead bugs and other debris.
3. A 40 gallon water heater will leak down dozens of floors?
Answer: Seriously? Remember, water is flowing into the water heater tank as quickly as it is exiting. How do you think your water heater stays full while you are taking showers? This running water doesn't take very long to flood out dozens of condos! Happened to me at my Sonoran condo. Top floor water leaked all the way down to the bottom floors.
4. Why would insurance not cover water damage?
Answer: Mexico Insurance will not cover damage to your condo caused by another. You better hope the people above you have insurance! Again, been there, done that!
5. Do you have a report from the fire marshal stating they are not able to access any of the Sonoran Properties?
Answer: When I was considering buying a condo, I personally went down and spoke with the Fire Marshal. They have no ladders going above 40'. Just drive down to the fire department your self and tell me how many ladder trucks you see!
6. Do you have documentation showing that rental owners don't carry insurance?
Answer: Happened to me when my neighbor above let their insurance lapse. Do you think for a minute that those who fail to remember to pay their annual City Taxes and Bank Trust fees may let their insurance lapse also? There are no automatic renewals in Mexico and no escrow account allowing for insurance payments.
I am not trying to argue with anyone. I am just telling you what I know personally. If you chose to ignore these possibilities, please don't complain when they happen to you....and they will@!
1. Most units in Las Palomas have a line from the water heater to the laundry sink. In the event the water heater bursts. Also, as a back up, each laundry room has a drain. Most of the units in the rental pool have had their valves replaced.
2. Las Palomas does not have wood construction.
3. The HOA requires all units to carry liability insurance. Owners are required to provide this info to the HOA office each year. Mexico insurance will cover damage your unit causes to another. The minimum property damage coverage we must have is $100,000. If the unit does not have insurance, the owner is responsible for the damage caused. We have had several owners over the years pay out of pocket for damage they caused the unit below. Considering a condo policy on avg. is less than $150 per year, it makes sense to have insurance (ie. no excuse not to have a policy).
4. I'm not sure about other resorts, however I know that the HOA at Las Palomas is strict when it comes to insuring your property and in turn paying for damage caused by your unit (you don't pay it, you can't use the common area or bring your vehicle into the property since you are violating HOA rules regarding damage caused by your unit.
jamesishere said:
1. What condo development along Sandy Beach (taller than 30 ft) is wood frame construction?
Answer: The Sonoran projects have wood 2'x4's every other wall. Concrete wall, then wood, then concrete, etc. I watched the Sonoran Spa get built from the ground up.
2. What development does not have a drainage system in the laundry room to help alleviate a water leak from a hot water heater?
Answer: A drain cannot hold rusty water very long without clogging. Remember, not only water drains out a rusty tank but particales of rusted metal. Besides, when do you think the last time ANYONE at any of the Sandy Beach projects cleaned out their drains? It is resonable to think they are full of dead bugs and other debris.
3. A 40 gallon water heater will leak down dozens of floors?
Answer: Seriously? Remember, water is flowing into the water heater tank as quickly as it is exiting. How do you think your water heater stays full while you are taking showers? This running water doesn't take very long to flood out dozens of condos! Happened to me at my Sonoran condo. Top floor water leaked all the way down to the bottom floors.
4. Why would insurance not cover water damage?
Answer: Mexico Insurance will not cover damage to your condo caused by another. You better hope the people above you have insurance! Again, been there, done that!
5. Do you have a report from the fire marshal stating they are not able to access any of the Sonoran Properties?
Answer: When I was considering buying a condo, I personally went down and spoke with the Fire Marshal. They have no ladders going above 40'. Just drive down to the fire department your self and tell me how many ladder trucks you see!
6. Do you have documentation showing that rental owners don't carry insurance?
Answer: Happened to me when my neighbor above let their insurance lapse. Do you think for a minute that those who fail to remember to pay their annual City Taxes and Bank Trust fees may let their insurance lapse also? There are no automatic renewals in Mexico and no escrow account allowing for insurance payments.
I am not trying to argue with anyone. I am just telling you what I know personally. If you chose to ignore these possibilities, please don't complain when they happen to you....and they will@!
Is it worth it owning a condo in Rocky Point? We are looking into possibly buying a 2bdrm 2 bath in Las Palomas and renting it out for the times we aren't planning on going down. What are the pros/cons of this if you wouldn't mind sharing any input. Thanks!
Hi Warchild--We purchased at Sonoran Sun in April 2014 and couldn't be happier. If we had the money, we'd buy more condos. It pays for itself and it works for us, so the answer to "Is it worth it?" is a resounding yes!
We only come down a couple of times a year (live in NY), but hope to move permanently in a couple more years. I rent it out via VRBO, AirBnB, FlipKey/TripAdvisor, and of course, Seaside. Usually I'm the one providing the renters since I work at it, so i keep the extra 10% for providing the reservation. We are pretty much fully booked March-November, with only maybe 20 days or so vacant during that timeframe. Seaside is our management company, and also manages units at the Sky, Princesa, Bella Sirena, Esmeralda, CasaBlanca, Pinacate, and Luna Blanca (out in Playa Miramar).
What makes a condo a good rental? Welcoming outdoor furniture, good furnishings (not necessarily expensive, but decent quality kept in good repair), comfy mattresses or foam mattress toppers, a well-stocked kitchen, modern tv's, and nice decorations. Think about what you'd like to have when you travel. We added some more extras from there which (I hope) makes ours stand out from the rest.
Now, I have never owned at Las Palomas, so I'm only referring to rentals in PP in general. If you're renting, I think it's imperative that the resort has a front desk, housekeeping staff, and maintenance staff. When something goes wrong, it gets fixed. I think guests are more comfortable having a front desk as they're used to with hotels. Almost all of the resorts on Sandy Beach have a front desk to act as the middleman to get issues taken care of.
Hey The partner thing can work very well. Some years back we did the same thing with 7 other friends or business associates and it worked great. Our week started on Friday afternoon about 4 and out on friday am by 11 soa a cleaning service had time to come in every week. Using a cleaning service allows you to just pick up and leave. There can be no squabel that you did not do a good clean up. We also did the rotation and trades etc and no problem.
We all knew the schedule of who ,when and if were not going or leaving early let the other folks and they could go early or some one else could go.
Now with E-Mail it would be a piece of cake. We would all get together a couple of times a year or sooner if needed to discuss any issues or needs. If a major item was needed some one would be authorized to go and buy it.
One nice thing for self employed is that it kind of makes you take off and rest at least every 8 weeks.
Go for this in my mind.
This is exactly what we did for many years with our RV at Playa Elegante. Three brothers all self-employed in the same business. It worked out great. We each had designated space for our clothing and we shared non-perishable food in the kitchen. We would still be doing it today if Elegante was open.
I have had 4 condo at different times but now we only have Bella. All the Sonoran properties seem to be great. I sold those. I have had drapes on windows and now I have blinds. Every time I come down some of the slates are down and I have to fix them. Has anyone bought blinds in Penasco? I am thinking if I buy them thee they can deal with the problems.