You probably know about condos and single family homes, but have you heard of a condo-tel? A condo-tel is a condominium project that is operated as a hotel with a lobby, registration/front desk, cleaning services and more.
The units are individually owned (like condos) but there is a rental desk onsite. Owners have the option to place their unit in an onsite rental program and have it rented out like a hotel room for nightly rentals. Ownership in a condo-tel is generally for a second or third home.
Yotelpad is the latest condo-tel development in Mammoth Lakes, but there are dozens of condo-tels here: the Westin Mammoth, The Village at Mammoth, 1849 Condos, St. Anton, Seasons IV and Mammoth Estates, just to name a few. Basically it’s no different than any other condo project, but because there’s a front desk, there’s a difference in financing options.
Condo-tel financing can be challenging but it isn’t impossible. Financing on these types of properties started to retract in 2008 because of an opinion by financial institutions that condominium loans were tied to larger than normal losses or defaults.
Although restrictions are loosening up a bit, traditional lenders are usually not an option for condo-tels. Non-traditional options are available — you just need to know where to look. As long as there is one bedroom and it’s at least 500 square feet, you should be able to get a loan. A down payment of at least 25 percent is usually required, and although the rates can be pretty competitive, they tend to be slightly higher than what you’d be able to secure on a 30-year fixed loan on your primary home.
Your real estate agent should be able to walk you through what’s classified as a condo-tel and what’s not and direct you to financing options if you’re interested in buying a condo-tel property in Mammoth Lakes.
For more information on buying a condo or condo-tel in Mammoth Lakes, check out my Ultimate Home Buyer’s Guide. Give me a call if you’d like to talk: (760) 914-4664.