TRUE PROS SHARE KNOWLEDGE, NOT HOARD IT
Managing properties isn’t all about physical property maintenance. A trustworthy management firm accumulates a wealth of professional management knowledge while doing business. The right management firm for your project is willing to share that knowledge to help you protect your real estate investment.
The differences between owning a condo or a single family home are wide reaching. Real Estate pros across the board agree that multi-family housing appreciates at a slower rate than single family homes because the multifamily condos are uniform in size and amenities. Homes, on the other hand, offer a variety of floor plans, different square footage, and different building materials and vary in age.
When an owner is invested in real estate, he/she have hope that the property will appreciate in value over the long term, allowing the owner to sell the property at a profit when the time is right. When potential buyers are teeing up to qualify for a loan to buy a condo, one of the factors that will impact lending is how many of the condos in the group are owner occupied and how many are rented.
Until 2016, up to half of the total condos could be rentals without negatively impacting traditional lending. In 2016, then-President Obama signed the Housing Opportunity Through Modernization Act reducing the number of owner-occupied condos to 35% while still allowing potential buyers to apply for FHA financing.
The finer points to this qualifying change include:
- The condo development must be more than 12 months old.
- Applications must be submitted for processing and review under the HUD Review and Approval Process (HRAP) option
- Financial documents must provide for funding of replacement reserves for capital expenditures and deferred maintenance in an account representing at least 20% of the condo development’s budget
- No more than 10% of the total units can be in arrears (more than 60 days past due) on their condominium association fee payments
- Three years of acceptable financial documents must be provided.
As a property manager for several multifamily condo developments, Blueshift has mastered accounting for condo associations, collections of late-pay dues, plus budgeting HOA expenses to show the required funds on account.
Selling a condo is as important to an individual’s wealth accumulation as is buying. Items that affect both ends of the deal should be within target range at any time during operations, says Phillip Svoboda, founder of Blueshift managing condo HOAs metro-wide.
Contact Blueshift today for an honest review of the services your HOA is receiving now and the services it really needs.