1 King West owners question

[Civdis]

I just checked the MLS, that listing is highly deceptive. The income they are quoting is total revenue booked by the hotel, not even close to what the owner would get after wages, management, FFE etc. That unit is a 1.4 factor meaning the owner likely grossed $56k last year. Subtracting taxes and condo fees, you would be around $40k. Having said that, the income level would support $550k debt at 5.5%. Considering your circumstances, this could be a good investment.

And yes, I am still an owner and very happy to be one.

 

[Freakydisco]

I just checked the MLS, that listing is highly deceptive. The income they are quoting is total revenue booked by the hotel, not even close to what the owner would get after wages, management, FFE etc. That unit is a 1.4 factor meaning the owner likely grossed $56k last year. Subtracting taxes and condo fees, you would be around $40k. Having said that, the income level would support $550k debt at 5.5%. Considering your circumstances, this could be a good investment.

Interesting! Thanks for your response! It was very helpful! I’m curious, though… you said it’s hard to find a unit that’s in the rental pool… but can’t any unit apply to be in the pool, or have they capped it? I’ve seen the application to join (I came across a PDF online a few weeks ago while trying to research the way the program works) and the impression I got was that anyone in the building can apply, but acceptance has certain conditions, like the unit being in acceptable condition, etc. I assumed I could buy any unit and apply, as long as the unit is equal (or better than) their style and design. Is that not the case? Do they have to be specific units? Thanks again!

The PDF I mentioned is here: https://www.onekingwest.com/wp-content/uploads/Web_Entry-and-Exit-Rules.pdf

I believe I also found a more recent updated version, but I can’t find it now.

 

[Civdis]

Interesting! Thanks for your response! It was very helpful! I’m curious, though… you said it’s hard to find a unit that’s in the rental pool… but can’t any unit apply to be in the pool, or have they capped it? I’ve seen the application to join (I came across a PDF online a few weeks ago while trying to research the way the program works) and the impression I got was that anyone in the building can apply, but acceptance has certain conditions, like the unit being in acceptable condition, etc. I assumed I could buy any unit and apply, as long as the unit is equal (or better than) their style and design. Is that not the case? Do they have to be specific units? Thanks again!

The PDF I mentioned is here: https://www.onekingwest.com/wp-content/uploads/Web_Entry-and-Exit-Rules.pdf

I believe I also found a more recent updated version, but I can’t find it now.

We like to keep the number of units in the hotel pool at certain optimal level (forget what that is) so there is usually a waiting list to join the pool. To get into the pool, the unit has to be renovated to the standard of the hotel program. They want all of the units to have a standard look to them, so even if major upgrades were made, the unit would have to be brought to the exact spec of the units in the hotel program. We are undergoing a major revamp in the next year, so it could be a good time to apply to get a unit into the program.