Nathan Colmer | The Van Dyk Group
C: 609.290.4293 | O: 609.492.1511
Nathan Colmer | The Van Dyk Group
C: 609.290.4293 | O: 609.492.1511
There are many motels on Long Beach Island that have been converted into small condos. These units typically offer an excellent location (usually within a block of the beach) at an affordable price. Most are 1 or 2 bedroom units and will typically sell under $300,000. One key characteristic of converted motels is they typically winterize in the off season so the water will be shut off to the entire complex (and the individual unit) from roughly the middle of November to the middle of April.
Motels which have been converted to condominiums create a very unique concept in the LBI real estate market. Theses units are generally some of the most affordable sale options on Long Beach Island but the do have limitations and restrictions which must be considered. This form of ownership is relatively new in the second home market and allow buyers the ability to purchase a vacation property that can be used and rented while staying within a purchase budget.
HOA fees are generally affordable. The fee will usually cover both homeowner and flood insurance, annual expenses such as the turning on and turning off of water to the complex and a small maintenance fund. In some cases the HOA fee will even cover property taxes.
Thanks to their great location, converted hotel condos will usually be an excellent and reliable source of rental income. While their smaller size does limit the rate which can be charged, an aggressive landlord can usually cover the expense and even make a profit!
Of all forms of condo ownership on Long Beach Island financing a converted hotel is the most difficult. They are generally considered to be "non-unwarrantable condos" due to their size and the fact that they will generally not be used year round.
137 E Maryland is a perfect example of a converted motel on Long Beach Island. The original building was built in the 1960's and was originally designed as a small motel with an attached store. The property was later converted into a condominium complex that accommodated a number of small units ranging in size from about 250 sq. feet to about 600 sq. feet.
The location of 137 E Maryland is outstanding just two houses off the beach. The price for such a great location demonstrates the value of these converted motel condos. Such a concept allows buyers to purchase a second home on Long Beach Island in a great location at an affordable price!
For the price, a converted condo allows a buyer to purchase a second home or investment property in a great location at an affordable price.
Financing the purchase can be difficult and can be more expensive. Management is usually a unit owner so it is important to keep tabs on the budget and expenses of the association.
There is a unique form of ownership in the LBI real estate market known as "Interval Ownership". This combines elements of a time share and a condominium ownership. They are similar to a timeshare in that there are several owners who share the use and expense of an individual property and they are similar to a condo in that an individual deed is issued to each owner.
Interval ownership is often confused with condominiums in the LBI real estate market and many buyers incorrectly assume interval ownership are inexpensive condominiums. Buyers should be aware of the extensive differences between the two and understand that interval ownership IS NOT a condominium.