While condominiums provide incredible housing opportunities for people who want privacy without property upkeep and investment opportunities for those who are looking for a way to generate truly passive income, there is another option in the same housing genre that you may not be overly familiar with.

In some areas that are considered “destination cities” such as New York, Los Angeles, Miami, Las Vegas and Chicago, condotels are becoming an increasingly popular option for buyers who want an investment property that they can enjoy when traveling. Instead of purchasing a timeshare, which you will never truly own, condotels provide buyers with a chance to generate money while having a home away from home in their favorite vacation destination.

What is a Condotel?

You probably already know what a condo is. In most cases, these housing units are much larger than apartments and provide a luxury living experience for owners. To make things even better, people who own a condo aren’t required to handle property maintenance such as plumbing issues, electrical problems and lawn maintenance. Instead, the HOA that governs the condo complex handles those matters.

Additionally, you’ve undoubtedly stayed in a hotel before. Obviously, you’ve never had to mow the lawn at a hotel during your vacation, but to make things even better, a cleaning service comes in and handles the janitorial needs for each unit. 

A condotel provides the best of both worlds. With larger living areas than a hotel provides, owners who purchase a condotel can enjoy an enhanced luxury living experience while also enjoying a hotel-like service experience. Condotels, which are still governed by a HOA that handles all the property maintenance needs, also includes a cleaning service and other hotel-like services that bring luxury living to another level.

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While traditional lenders require to provide proof of income that goes back years with the same employer we understand that doing so isn’t always possible and take a non-traditional approach in making your dream come true.

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How to Purchase a Condotel

Condotels are widely considered a lifestyle investment. If you’re an avid traveler who primarily visits destination cities like the ones we listed above, knowing that you have a place to stay is invaluable. Instead of worrying about fluctuating hotel prices and availability, you can simply determine what days you’ll be staying in the unit that you own. To make the deal even sweeter, you can allow the company that manages the entire condotel complex to handle renting out your condotel unit to other travelers, so you make money.

Unfortunately, some traditional mortgage lenders don’t like to approve mortgages for condotels. Many consider condotels unwarrantable due to the number of non-owners that are usually found in the complex. 

Fortunately for our clients, NonQMDirect.com specializes in offering mortgages on properties that our traditional counterparts refuse to touch. Why? Because we understand that every mortgage is its own unique proposition. Our team of lending professionals is passionate about helping our clients make their homeownership dreams come true, regardless of the type of property that they want to purchase.

If you think that a condotel is a good option for your personal and financial goals, contact NonQMDirect.com today to find out how our team can help you