Regency Park at Lake Mary Condo's (Rio: bank owned, for sale, apartment complex)

[Guntersville Boomer]

Does anyone know anything about these condo's, it is like a 400 unit apartment complex that was converted to condo's when times were better, now units are selling at very low cost, any thoughts on whether or not to buy there, my brother is thinking about buying a unit there. Thanks

[GregTraub]

Don't know the unit specifically, but there is a very good reason condo conversions are priced so cheaply right now. Many of these "developers" that converted the apartments to condo's did very little if anything to the unit's to put them for sale, and most apartments are built to MINIMUM standards which isn't much. The HOA's have major problems usually with sky high fee's, mis-managed, and you better make sure the developer is completely out of there because some of these places have the developer in complete control of the HOA still, making life for the residents tough.

Approach any condo conversion with GREAT care, I highly recommend staying away from almost all of them as they just aren't worth it.

[beckycat]

Actually, they are one of the nicer condos. I had friends that lived there when they were apartments and now while condos. They don't have all the rif-raf like some of the apartment complexes. I would buy in there.

[Guntersville Boomer]

Thanks for the feedback, I'll pass it on.

[GregTraub]

An FYI for your brother, just looked up some stats on those condo's. Since January 1 2008 only 10 units have re-sold in that complex, with currently 47 on the market. Many are bank owned or short sales. This represents a near 5 year inventory with a waiting list of motivated banks trying to sell at the same time.

There is no crystal ball, but I see much further price drops in that neighborhoods future.

And make sure he has spoken to a mortgage lender about qualifying for loans in this particular neighborhood. MANY (not saying all or even this one) condo-conversions don't qualify for financing by many banks because of a very high percentage of investor owned units, or high percentage of foreclosures.

On the upside, it doesn't look like their HOA dues are completely ridiculous, they seem to range from the 180's/mo to 300/mo depending on unit.

[Guntersville Boomer]

Greg-- Thanks, I will tell him, I don't think he knows 47 are for sale. Another point I think you had also mentioned was the status of the HOA fees, what is being covered vs what will need done, especially if they aren't getting $ from the foreclosed units. He said some had sold in the beginning for like $150k so I have to imagine more folks will be upside down and may walk away, just looks problematic to me.

[GregTraub]

Condo's aren't all the same, some dues cover certain things in one neighborhood while others won't. A big question being if the HOA dues include an escrow reserve for replacements of common elements like the roof, painting of exterior, re-paving if gated, etc, etc.
And like you said if there are alot of foreclosures in the neighborhood, those people and banks are most likely not paying their dues on time if at all, and that puts a burden on all the other owners. This communities dues aren't as bad as other's I've seen so that's a good sign, but only a look at the HOA's balance sheet will tell you. And condo-conversions are just plain NOTORIOUS for big ol' can's of worms.

Right now there is a 1 br unit asking 41,900, and the cheapest 3 br unit asking 97500. You can be sure there are alot of people in those right now that are upside down.

If your brother isn't working with a knowledgeable agent yet he should get one so he has less of a chance of making a big mistake. There are tons of questions he may not even know to ask when it comes to buying.

[beckycat]

Originally Posted by GregTraub

Condo's aren't all the same, some dues cover certain things in one neighborhood while others won't. A big question being if the HOA dues include an escrow reserve for replacements of common elements like the roof, painting of exterior, re-paving if gated, etc, etc.
And like you said if there are alot of foreclosures in the neighborhood, those people and banks are most likely not paying their dues on time if at all, and that puts a burden on all the other owners. This communities dues aren't as bad as other's I've seen so that's a good sign, but only a look at the HOA's balance sheet will tell you. And condo-conversions are just plain NOTORIOUS for big ol' can's of worms.

Right now there is a 1 br unit asking 41,900, and the cheapest 3 br unit asking 97500. You can be sure there are alot of people in those right now that are upside down.

If your brother isn't working with a knowledgeable agent yet he should get one so he has less of a chance of making a big mistake. There are tons of questions he may not even know to ask when it comes to buying.

$41,900, Wow that's cheap to live in Lake Mary!

[pp2708]

Hi We are looking at 2 bed unit as a longer term investment i.e. rent out now long term and use as a holiday home in the future. Area of Lake Mary looks great-condos are unbelievable bargain prices,what are the issues around conversions? they are quite common here (UK) and do not normally pose any problems. Thanks

[Guntersville Boomer]

pp2708-- I have been telling my brother about the issues he needs to look at and he is going to buy at this complex. He has talked to others who live there and been driving thru several times and feels it will be a good investment for him. He said the maintenance fee is like $237 a month but with such a low monthly mortgage payment he see's no problem. He also said he has talked to a guy from FEMA who apparently have office space across the street and that guy told him others who are on assignment at the office would rent a furnished unit immediately if available. My only real longer term concern for the units are what if more units go into forclosure, but if the price it right, they should sell eventually. The location of this complex is excellent, right off Lake Mary Blvd.