Here in Las Vegas, we have several condo-hotel properties currently operating and two more just getting ready to open. These include Palms Place, Trump, MGM Signature, Platinum and the brand debuting Cosmopolitan and Vdara at City Center.

A condo-hotel, a term I thought most people were familiar with but apparently are not, is a condo that comes totally turn-key just like a hotel room. They are totally furnished with everything you would find in a hotel or timeshare property. This includes livingroom furniture like a queen size sleeper sofa, tables, chairs, art, and now flat panel TVs. The sleeping area which may be a separate bedroom depending on the size of the unit which have a queen or king size bed, all the high end linens you'd expect in a 5 star resort, and more. The baths will have all the luxurious towels, rugs, and bath accessories like shampoo, body soap and more. The kitchens (or kitchenettes) will have appliances, a fridge, microwave, dishwasher, some time of cooktop and possibly and oven, as well as all the appointments you'd need to cook and serve just like at home (dishes, silverware, cookware, utensils, etc.).

Considering whether this is a good option for you, there are some things you need to understand. Most people buy a condo-hotel unit for an investment. This is because they can be rented out nightly like a hotel room, and you can generate income from it. Most rental programs operate on a 50/50 split meaning you get half the nightly revenue they bring in. So for example, if the room generates $100 per night, you're entitled to $50 per night.

Other people buy one of these types of units so they have a place to stay when they come to Las Vegas, or can let friends, family, colleagues or clients use it. If this is your purpose, this is a popular use for these units, and if they happen to bring in some additional income, then its considered a bonus.

I get some of the same questions over and over:

• What does it rent for per night? There is no easy answer to this question. It depends on the size of the unit, the number of people it sleeps, the project it is in, the time of year, what's going on it town, weekday vs. weekend, etc. To get an idea what it rents for per night, go to the website of the property, put in your dates and the size unit you're thinking of buying and see what they're charging for per night.
• Why is the monthly HOA dues so high? Your monthly HOA dues in a condo hotel covers everything except property taxes and insurance. What is usually included is the typical utilities like water, sewer and trash, upkeep of the common areas like the pool and spa, fitness center, security, etc. But with a condo-hotel, it also includes the other utilities like electric and gas, front desk staff, concierge, valet parking, cable TV service and, the availability of high speed internet access and pay-per-view movies. Having all that staff to keep that 5-star property looking like a 5-star property isn't cheap.
• How much money could I expect to make each month OR will this cash flow for me? There is no way to answer this question easily. Legally, you can't be promised income because that makes it an investment which requires a securities license to sell and no one in real estate I know of has one. Also, past performance is no indication of future income. But here is the real rub -- if the property is now bank owned, you as a buyer are not provided with any type of disclosure about the property because the bank doesn't know anything about the unit other than they foreclosed on it and are selling it. If the property is a short sale, the previous owner may choose to share this info with you but they are not obligated to. But here is the hardest part of this -- in the vacation rental business, the client dictates the use. So depending on what floor your unit is on, what size it is and what view it has may or may not affect how often its rented. Some guests want a high floor, no a low floor, sleeping space for 4 people, no 6 people, no 8 people, a view of the strip or "I don't care what the view is", or I always stay in room ### if its available because that's where he proposed. As fair as the property tries to be in spreading out the reservations so everyone gets as equal a shot at income, you can see how the guests could easily sway the outcome of this endeavor. Do your homework, see how many nights you'd need to break even and decide that even if you don't make that number if you'd be okay with it.
  
• Why are these units such great deals right now? Several reasons - most of the condo hotel units currently available are being offered at amazing discounts had previously sold for $400,000 to over $1 million and can now be purchased for $100,000 to $200,000. Why so cheap? Because no lender will loan on them and so they must be purchased with cash. Why won't lenders loan on them? Because condo-hotel units were typically purchased by investors and, when the market goes bad, investors are the first ones to dump the properties making these very risky loans.

I love condo-hotel properties. Having frequently been in all of these properties, I see their merit and their downside. But if you visit Las Vegas frequently, or want a hands-off rental, this could be a great option for you.