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Seattle Times on condo hotels

By September 5, 2007

1

The Seattle Times has an article looking at condo hotels, specifically, 1 (worst name ever), Owning a hotel room for pleasure, profit:

He’ll make a down payment of $240,000, and get a 30-year loan with a 6.88 percent interest rate for the rest, with a monthly mortgage payment of $2,366, not including property tax, insurance and homeowner fees. He estimates that to cover the mortgage payment, hotel management would need to fill his room 22 days or more a month at a daily rate above $300, and return at least 40 percent of the revenues to him.

Those numbers aren’t out of line with downtown’s average hotel-occupancy rate and prices being charged by some of the more expensive hotels.

There was an article in Forbes about this a year ago that I blogged about that showed their person losing $12k a year on their unit.

Here’s an info graphic showing how it works. Though if you’re forking over $600k you should likely consult a good real estate agent or lawyer and not rely on this:

Funny math and frothy markets aside, the 1 bathrooms look pretty nice though I’m a little unsure of the ladder:

Any Urban Living readers interested in 1? How does your math have you netting out?

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