{"id":77701,"date":"2021-07-12T09:30:00","date_gmt":"2021-07-12T15:30:00","guid":{"rendered":"https:\/\/www.biggerpockets.com\/renewsblog\/?p=77701"},"modified":"2023-03-28T06:01:47","modified_gmt":"2023-03-28T12:01:47","slug":"buying-condo-good-investment","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/buying-condo-good-investment","title":{"rendered":"Should You Invest in Condos? Here&#8217;s What to Know First"},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm?e=BIGPOC4225373160&#038;light=false\" width=\"100%\"><\/iframe>  \n\n\n\n\n<p>Some people may find buying a condo to be in their best interest, while others do not. Is buying a condo a good investment for you, specifically? By the end of this article, you will be able to determine for yourself if you are the right candidate to be investing in a condo community\u2014whether you&#8217;re an investor or looking for a personal residence.<\/p>\n\n\n\n<p>First, let\u2019s look at what a condominium is and who ultimately has control over it.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is a condo?<\/h2>\n\n\n\n<p>Owning a house means that you own the unit and the property, whereas a condo is entirely different. Basically, a condo owner only owns the airspace inside an individual unit within a building. They share ownership and responsibility of common areas and communal property such as the stairways, hallways, walls, exterior areas, and sidewalks.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">HOA vs. condo association<\/h2>\n\n\n\n<p>Homeowners in private communities are generally required to pay condo or HOA fees. While both HOA and condo associations exist to maintain rules and guidelines in private communities, these associations vary from each other based upon the differences between homeowners and owners in a condo community.<\/p>\n\n\n\n<p>Since the key difference between a homeowner and condo ownership, which we just discussed, is the amount of ownership, buyers in these situations have different roles when it comes to participation in the community association boards and decisions.<\/p>\n\n\n\n<p>Condo owners share joint ownership, and therefore, joint interest or responsibility due to the residents\u2019 shared stake in what the association owns. With a homeowners association, owners are responsible for their individual property and lots. Unlike the condo community, the HOA actually owns the common areas in private communities itself.<\/p>\n\n\n\n<p>So, after learning owners in a condominium don\u2019t own much other than the air space in their units, you must be asking yourself the central question of this article: \u201cIs buying a condo a good investment?\u201d Well, let\u2019s look at some of the positives for condo ownership.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n  <div id=\"posts_lists-block_60bfd53ac560f\" class=\"  my-10\">\n    <div class=\"\">\n      <!-- Column One -->\n      <div>\n                  <h2 class=\"mt-0 mb-1 js-toc-ignore\">\n            More on condos from BiggerPockets          <\/h2>  \n                  \n        \n        \n        <div class=\"grid grid-cols-1 gap-y-4 lg:gap-y-7 mt-5\">\n          \n<article \n\tid=\"post-78236\" \n\tclass=\"content-card mb-0 flex flex-col  post-78236 post type-post status-publish format-standard has-post-thumbnail hentry category-real-estate-investing-for-beginners\">\n\n\t<header class=\"entry-header\">\t\t\t\n\t\t<!-- Image -->\n        \t\t\t<a class=\"post-thumbnail\" href=\"https:\/\/www.biggerpockets.com\/blog\/2016-05-27-ultimate-guide-investing-condos-townhomes\" target=\"\" aria-hidden=\"true\" tabindex=\"-1\" target=\"_blank\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"338\" height=\"225\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/09\/apartment-condo.jpg\" class=\"size-card w-full  m-0 aspect-[68\/45] object-scale-down wp-post-image\" alt=\"The Ultimate Guide to Investing in Condos and Townhomes\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/09\/apartment-condo.jpg 830w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/09\/apartment-condo-300x200.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/09\/apartment-condo-768x512.jpg 768w\" sizes=\"auto, (max-width: 338px) 100vw, 338px\" title=\"\">\t\t\t<\/a>\n\t\t        \n\n\t\t<!-- Content Wrapper -->\n\t\t<div class=\"py-4 \">\t\n                            <div class=\"flex gap-4 justify-between items-center\">\n                    <!-- Category  -->\n                                            <a href=\"https:\/\/www.biggerpockets.com\/blog\/category\/real-estate-investing-for-beginners\" class=\"transition-colors bg-themeBlue\/20 text-themeBlue-medium hover:bg-themeBlue hover:text-white px-2 py-1 mb-2 inline-block rounded-sm no-underline text-sm\" target=\"_blank\">Investing For Beginners<\/a>\n                    \n                                            <span class=\"text-sm text-gray-500 hidden lg:inline-block\">11 min read<\/span>\n                                    <\/div>\n            \n           <div class=\"flex gap-3 items-center my-2 flex-nowrap text-base\">\n                <!-- Avatar and Author Name -->\n                <img decoding=\"async\" src=\"https:\/\/bp-wp-migration.s3.amazonaws.com\/author_avatars\/5005.jpg\" class=\"w-8 h-8 object-cover my-0 inline-block rounded-full\" alt=\"\" title=\"\"><span class='leading-snug text-slate-500 flex items-center'><span class='hidden whitespace-nowrap sm:inline-block md:hidden lg:inline-block pr-1'><span class='posted-on'><time class=\"entry-date published\" datetime=\"2020-01-24T09:00:58-07:00\">Jan 24, 2020<\/time><time class=\"updated\" datetime=\"2024-02-19T14:40:20-07:00\">Feb 19, 2024<\/time><\/span><\/span>&nbsp;<a href='https:\/\/www.biggerpockets.com\/blog\/contributors\/tiffanyalexy' class='no-underline line-clamp-1' target=\"_blank\">Tiffany Alexy<\/a><\/span>            <\/div>\n\n            <!-- Post title -->\n\t\t\t<h2 class=\"entry-title js-toc-ignore mt-4 mb-0 text-xl leading-snug text-left\">\n\t\t\t\t<a href=\"https:\/\/www.biggerpockets.com\/blog\/2016-05-27-ultimate-guide-investing-condos-townhomes\" rel=\"bookmark\"  \n\t\t\t\t\tclass=\"whitespace-normal no-underline font-bold  text-slate visited:text-slate hover:text-themeBlue\" target=\"_blank\">\n\t\t\t\t\tThe Ultimate Guide to Investing in Condos and Townhomes\t\t\t\t<\/a>\n\t\t\t<\/h2>\n\t\t\t\n                        <p class=\"text-lg font-normal mt-3 text-slate-500 mb-1 line-clamp-3\">Contrary to what you might have heard, investing in condos and townhomes can be profitable. Learn everything you need to know this niche here\u2014including why condos make a great investment&hellip;<\/p>\n\t\t<\/div>\n\t<\/header>\n     <footer class=\"flex justify-between mt-auto\">\n        <!-- Comment Count -->\n        \t\t<span class='flex items-center space-x-2 text-sm' x-cloak x-data='commentCount()' :class=\"parseFloat(commentCount) < 1 || commentCount == '' ? 'hidden' : 'flex'\">\n\t\t\n            <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"h-5 w-5 text-slate text-opacity-50\" fill=\"none\" viewBox=\"0 0 24 24\" stroke=\"currentColor\">\n                <path stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" d=\"M17 8h2a2 2 0 012 2v6a2 2 0 01-2 2h-2v4l-4-4H9a1.994 1.994 0 01-1.414-.586m0 0L11 14h4a2 2 0 002-2V6a2 2 0 00-2-2H5a2 2 0 00-2 2v6a2 2 0 002 2h2v4l.586-.586z\" \/>\n            <\/svg>\n\n            <span x-ref=\"comment_count\" class=\"disqus-comment-count text-slate text-opacity-80\" data-disqus-identifier=\"78236\">\n\t\t\t\t\t\t\t<\/span>\n        <\/span>\n\t    <\/footer>\n<\/article><!-- #post-78236 -->\n<article \n\tid=\"post-77242\" \n\tclass=\"content-card mb-0 flex flex-col  post-77242 post type-post status-publish format-standard has-post-thumbnail hentry category-single-family-real-estate-investing\">\n\n\t<header class=\"entry-header\">\t\t\t\n\t\t<!-- Image -->\n        \t\t\t<a class=\"post-thumbnail\" href=\"https:\/\/www.biggerpockets.com\/blog\/2016-03-09-choose-invest-condos-townhomes\" target=\"\" aria-hidden=\"true\" tabindex=\"-1\" target=\"_blank\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"340\" height=\"163\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/04\/condo-townhouse.jpg\" class=\"size-card w-full  m-0 aspect-[68\/45] object-scale-down wp-post-image\" alt=\"Why I Invest in Condos &#038; Townhomes Over Single Family Residences [Spoiler: The Numbers Convince Me!]\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/04\/condo-townhouse.jpg 702w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/04\/condo-townhouse-300x144.jpg 300w\" sizes=\"auto, (max-width: 340px) 100vw, 340px\" title=\"\">\t\t\t<\/a>\n\t\t        \n\n\t\t<!-- Content Wrapper -->\n\t\t<div class=\"py-4 \">\t\n                            <div class=\"flex gap-4 justify-between items-center\">\n                    <!-- Category  -->\n                                            <a href=\"https:\/\/www.biggerpockets.com\/blog\/category\/asset-classes\/single-family-real-estate-investing\" class=\"transition-colors bg-themeBlue\/20 text-themeBlue-medium hover:bg-themeBlue hover:text-white px-2 py-1 mb-2 inline-block rounded-sm no-underline text-sm\" target=\"_blank\">Single-Family Real Estate Investing<\/a>\n                    \n                                            <span class=\"text-sm text-gray-500 hidden lg:inline-block\">3 min read<\/span>\n                                    <\/div>\n            \n           <div class=\"flex gap-3 items-center my-2 flex-nowrap text-base\">\n                <!-- Avatar and Author Name -->\n                <img decoding=\"async\" src=\"https:\/\/bp-wp-migration.s3.amazonaws.com\/author_avatars\/5005.jpg\" class=\"w-8 h-8 object-cover my-0 inline-block rounded-full\" alt=\"\" title=\"\"><span class='leading-snug text-slate-500 flex items-center'><span class='hidden whitespace-nowrap sm:inline-block md:hidden lg:inline-block pr-1'><span class='posted-on'><time class=\"entry-date published\" datetime=\"2019-05-19T09:00:12-06:00\">May 19, 2019<\/time><time class=\"updated\" datetime=\"2024-02-19T07:42:02-07:00\">Feb 19, 2024<\/time><\/span><\/span>&nbsp;<a href='https:\/\/www.biggerpockets.com\/blog\/contributors\/tiffanyalexy' class='no-underline line-clamp-1' target=\"_blank\">Tiffany Alexy<\/a><\/span>            <\/div>\n\n            <!-- Post title -->\n\t\t\t<h2 class=\"entry-title js-toc-ignore mt-4 mb-0 text-xl leading-snug text-left\">\n\t\t\t\t<a href=\"https:\/\/www.biggerpockets.com\/blog\/2016-03-09-choose-invest-condos-townhomes\" rel=\"bookmark\"  \n\t\t\t\t\tclass=\"whitespace-normal no-underline font-bold  text-slate visited:text-slate hover:text-themeBlue\" target=\"_blank\">\n\t\t\t\t\tWhy I Invest in Condos &#038; Townhomes Over Single Family Residences [Spoiler: The Numbers Convince Me!]\t\t\t\t<\/a>\n\t\t\t<\/h2>\n\t\t\t\n                        <p class=\"text-lg font-normal mt-3 text-slate-500 mb-1 line-clamp-3\">Don&#8217;t believe all the negative talk about condo and townhome investment. If you live in the right market, these properties can DEFINITELY be profitable! Not buying it? Take a look&hellip;<\/p>\n\t\t<\/div>\n\t<\/header>\n     <footer class=\"flex justify-between mt-auto\">\n        <!-- Comment Count -->\n        \t\t<span class='flex items-center space-x-2 text-sm' x-cloak x-data='commentCount()' :class=\"parseFloat(commentCount) < 1 || commentCount == '' ? 'hidden' : 'flex'\">\n\t\t\n            <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"h-5 w-5 text-slate text-opacity-50\" fill=\"none\" viewBox=\"0 0 24 24\" stroke=\"currentColor\">\n                <path stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" d=\"M17 8h2a2 2 0 012 2v6a2 2 0 01-2 2h-2v4l-4-4H9a1.994 1.994 0 01-1.414-.586m0 0L11 14h4a2 2 0 002-2V6a2 2 0 00-2-2H5a2 2 0 00-2 2v6a2 2 0 002 2h2v4l.586-.586z\" \/>\n            <\/svg>\n\n            <span x-ref=\"comment_count\" class=\"disqus-comment-count text-slate text-opacity-80\" data-disqus-identifier=\"77242\">\n\t\t\t\t\t\t\t<\/span>\n        <\/span>\n\t    <\/footer>\n<\/article><!-- #post-77242 -->\n<article \n\tid=\"post-99511\" \n\tclass=\"content-card mb-0 flex flex-col  post-99511 post type-post status-publish format-standard has-post-thumbnail hentry category-landlording tag-apartments tag-case-study tag-condos tag-due-diligence tag-foreclosures tag-hoas tag-mers tag-phase-one tag-portfolios tag-private-lenders tag-rights-of-redemption tag-short-sales\">\n\n\t<header class=\"entry-header\">\t\t\t\n\t\t<!-- Image -->\n        \t\t\t<a class=\"post-thumbnail\" href=\"https:\/\/www.biggerpockets.com\/blog\/purchased-package-17-condos\" target=\"\" aria-hidden=\"true\" tabindex=\"-1\" target=\"_blank\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"340\" height=\"163\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2016\/05\/invest-in-condos.jpg\" class=\"size-card w-full  m-0 aspect-[68\/45] object-scale-down wp-post-image\" alt=\"How We Purchased Our Easiest (&#038; Weirdest) Deal Yet: A Package of 17 Condos\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2016\/05\/invest-in-condos.jpg 702w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2016\/05\/invest-in-condos-300x144.jpg 300w\" sizes=\"auto, (max-width: 340px) 100vw, 340px\" title=\"\">\t\t\t<\/a>\n\t\t        \n\n\t\t<!-- Content Wrapper -->\n\t\t<div class=\"py-4 \">\t\n                            <div class=\"flex gap-4 justify-between items-center\">\n                    <!-- Category  -->\n                                            <a href=\"https:\/\/www.biggerpockets.com\/blog\/category\/managing-scaling\/landlording\" class=\"transition-colors bg-themeBlue\/20 text-themeBlue-medium hover:bg-themeBlue hover:text-white px-2 py-1 mb-2 inline-block rounded-sm no-underline text-sm\" target=\"_blank\">Landlording &amp; Property Management<\/a>\n                    \n                                            <span class=\"text-sm text-gray-500 hidden lg:inline-block\">5 min read<\/span>\n                                    <\/div>\n            \n           <div class=\"flex gap-3 items-center my-2 flex-nowrap text-base\">\n                <!-- Avatar and Author Name -->\n                <img decoding=\"async\" src=\"https:\/\/bp-wp-migration.s3.amazonaws.com\/author_avatars\/1689.jpg\" class=\"w-8 h-8 object-cover my-0 inline-block rounded-full\" alt=\"\" title=\"\"><span class='leading-snug text-slate-500 flex items-center'><span class='hidden whitespace-nowrap sm:inline-block md:hidden lg:inline-block pr-1'><span class='posted-on'><time class=\"entry-date published\" datetime=\"2018-08-15T14:55:17-06:00\">Aug 15, 2018<\/time><time class=\"updated\" datetime=\"2021-03-16T13:55:58-06:00\">Mar 16, 2021<\/time><\/span><\/span>&nbsp;<a href='https:\/\/www.biggerpockets.com\/blog\/contributors\/andrewsyrios' class='no-underline line-clamp-1' target=\"_blank\">Andrew Syrios<svg class=\"h-5 inline ml-2\" viewBox=\"0 0 21 21\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><g clip-path=\"url(#a)\"><path d=\"M19.253 5.25a1.75 1.75 0 0 0-1.663 2.29l-1.42.902a2.188 2.188 0 0 1-2.868-.46L11.91 6.28a1.73 1.73 0 0 0 .342-1.03 1.75 1.75 0 1 0-3.5 0c0 .37.12.732.34 1.03L7.701 7.982a2.188 2.188 0 0 1-2.868.46l-1.42-.903a1.75 1.75 0 1 0-1.816 1.203l1.035 6.205a.438.438 0 0 0 .43.366H17.94a.437.437 0 0 0 .431-.366l1.035-6.204a1.75 1.75 0 0 0-.153-3.494Z\" fill=\"#FFC107\"\/><path d=\"M10.502 17.064c4.108 0 7.438-.98 7.438-2.188 0-1.208-3.33-2.188-7.438-2.188-4.109 0-7.439.98-7.439 2.188 0 1.208 3.33 2.188 7.439 2.188Z\" fill=\"#FFA000\"\/><path d=\"M10.502 17.501c-3.915 0-7.877-.901-7.877-2.625s3.962-2.625 7.877-2.625c3.914 0 7.876.9 7.876 2.625 0 1.724-3.962 2.625-7.876 2.625Zm0-4.375c-4.597 0-7.001 1.137-7.001 1.75s2.404 1.75 7 1.75c4.597 0 7.002-1.138 7.002-1.75 0-.613-2.405-1.75-7.001-1.75Z\" fill=\"#FFD54F\"\/><\/g><defs><clipPath id=\"a\"><path fill=\"#fff\" d=\"M0 0h21v21H0z\"\/><\/clipPath><\/defs><\/svg><\/a><\/span>            <\/div>\n\n            <!-- Post title -->\n\t\t\t<h2 class=\"entry-title js-toc-ignore mt-4 mb-0 text-xl leading-snug text-left\">\n\t\t\t\t<a href=\"https:\/\/www.biggerpockets.com\/blog\/purchased-package-17-condos\" rel=\"bookmark\"  \n\t\t\t\t\tclass=\"whitespace-normal no-underline font-bold  text-slate visited:text-slate hover:text-themeBlue\" target=\"_blank\">\n\t\t\t\t\tHow We Purchased Our Easiest (&#038; Weirdest) Deal Yet: A Package of 17 Condos\t\t\t\t<\/a>\n\t\t\t<\/h2>\n\t\t\t\n                        <p class=\"text-lg font-normal mt-3 text-slate-500 mb-1 line-clamp-3\">We&#8217;ve bought a few big portfolios in our time (most notably, a portfolio of nine, 41\u2014and the granddaddy of 97), but this one was by far the easiest&#8230; and the&hellip;<\/p>\n\t\t<\/div>\n\t<\/header>\n     <footer class=\"flex justify-between mt-auto\">\n        <!-- Comment Count -->\n        \t\t<span class='flex items-center space-x-2 text-sm' x-cloak x-data='commentCount()' :class=\"parseFloat(commentCount) < 1 || commentCount == '' ? 'hidden' : 'flex'\">\n\t\t\n            <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"h-5 w-5 text-slate text-opacity-50\" fill=\"none\" viewBox=\"0 0 24 24\" stroke=\"currentColor\">\n                <path stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" d=\"M17 8h2a2 2 0 012 2v6a2 2 0 01-2 2h-2v4l-4-4H9a1.994 1.994 0 01-1.414-.586m0 0L11 14h4a2 2 0 002-2V6a2 2 0 00-2-2H5a2 2 0 00-2 2v6a2 2 0 002 2h2v4l.586-.586z\" \/>\n            <\/svg>\n\n            <span x-ref=\"comment_count\" class=\"disqus-comment-count text-slate text-opacity-80\" data-disqus-identifier=\"99511\">\n\t\t\t\t\t\t\t<\/span>\n        <\/span>\n\t    <\/footer>\n<\/article><!-- #post-99511 -->\n<article \n\tid=\"post-117764\" \n\tclass=\"content-card mb-0 flex flex-col  post-117764 post type-post status-publish format-standard has-post-thumbnail hentry category-real-estate-investing-for-beginners\">\n\n\t<header class=\"entry-header\">\t\t\t\n\t\t<!-- Image -->\n        \t\t\t<a class=\"post-thumbnail\" href=\"https:\/\/www.biggerpockets.com\/blog\/hoas-not-deal-breaker\" target=\"\" aria-hidden=\"true\" tabindex=\"-1\" target=\"_blank\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"338\" height=\"225\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/10\/hoa.jpg\" class=\"size-card w-full  m-0 aspect-[68\/45] object-scale-down wp-post-image\" alt=\"6 Reasons HOAs Aren&#8217;t Necessarily Deal-Breakers\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/10\/hoa.jpg 830w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/10\/hoa-300x200.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/10\/hoa-768x512.jpg 768w\" sizes=\"auto, (max-width: 338px) 100vw, 338px\" title=\"\">\t\t\t<\/a>\n\t\t        \n\n\t\t<!-- Content Wrapper -->\n\t\t<div class=\"py-4 \">\t\n                            <div class=\"flex gap-4 justify-between items-center\">\n                    <!-- Category  -->\n                                            <a href=\"https:\/\/www.biggerpockets.com\/blog\/category\/real-estate-investing-for-beginners\" class=\"transition-colors bg-themeBlue\/20 text-themeBlue-medium hover:bg-themeBlue hover:text-white px-2 py-1 mb-2 inline-block rounded-sm no-underline text-sm\" target=\"_blank\">Investing For Beginners<\/a>\n                    \n                                            <span class=\"text-sm text-gray-500 hidden lg:inline-block\">6 min read<\/span>\n                                    <\/div>\n            \n           <div class=\"flex gap-3 items-center my-2 flex-nowrap text-base\">\n                <!-- Avatar and Author Name -->\n                <img decoding=\"async\" src=\"https:\/\/bp-wp-migration.s3.amazonaws.com\/author_avatars\/1689.jpg\" class=\"w-8 h-8 object-cover my-0 inline-block rounded-full\" alt=\"\" title=\"\"><span class='leading-snug text-slate-500 flex items-center'><span class='hidden whitespace-nowrap sm:inline-block md:hidden lg:inline-block pr-1'><span class='posted-on'><time class=\"entry-date published\" datetime=\"2019-10-24T12:00:27-06:00\">Oct 24, 2019<\/time><time class=\"updated\" datetime=\"2021-03-16T14:56:32-06:00\">Mar 16, 2021<\/time><\/span><\/span>&nbsp;<a href='https:\/\/www.biggerpockets.com\/blog\/contributors\/andrewsyrios' class='no-underline line-clamp-1' target=\"_blank\">Andrew Syrios<svg class=\"h-5 inline ml-2\" viewBox=\"0 0 21 21\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><g clip-path=\"url(#a)\"><path d=\"M19.253 5.25a1.75 1.75 0 0 0-1.663 2.29l-1.42.902a2.188 2.188 0 0 1-2.868-.46L11.91 6.28a1.73 1.73 0 0 0 .342-1.03 1.75 1.75 0 1 0-3.5 0c0 .37.12.732.34 1.03L7.701 7.982a2.188 2.188 0 0 1-2.868.46l-1.42-.903a1.75 1.75 0 1 0-1.816 1.203l1.035 6.205a.438.438 0 0 0 .43.366H17.94a.437.437 0 0 0 .431-.366l1.035-6.204a1.75 1.75 0 0 0-.153-3.494Z\" fill=\"#FFC107\"\/><path d=\"M10.502 17.064c4.108 0 7.438-.98 7.438-2.188 0-1.208-3.33-2.188-7.438-2.188-4.109 0-7.439.98-7.439 2.188 0 1.208 3.33 2.188 7.439 2.188Z\" fill=\"#FFA000\"\/><path d=\"M10.502 17.501c-3.915 0-7.877-.901-7.877-2.625s3.962-2.625 7.877-2.625c3.914 0 7.876.9 7.876 2.625 0 1.724-3.962 2.625-7.876 2.625Zm0-4.375c-4.597 0-7.001 1.137-7.001 1.75s2.404 1.75 7 1.75c4.597 0 7.002-1.138 7.002-1.75 0-.613-2.405-1.75-7.001-1.75Z\" fill=\"#FFD54F\"\/><\/g><defs><clipPath id=\"a\"><path fill=\"#fff\" d=\"M0 0h21v21H0z\"\/><\/clipPath><\/defs><\/svg><\/a><\/span>            <\/div>\n\n            <!-- Post title -->\n\t\t\t<h2 class=\"entry-title js-toc-ignore mt-4 mb-0 text-xl leading-snug text-left\">\n\t\t\t\t<a href=\"https:\/\/www.biggerpockets.com\/blog\/hoas-not-deal-breaker\" rel=\"bookmark\"  \n\t\t\t\t\tclass=\"whitespace-normal no-underline font-bold  text-slate visited:text-slate hover:text-themeBlue\" target=\"_blank\">\n\t\t\t\t\t6 Reasons HOAs Aren&#8217;t Necessarily Deal-Breakers\t\t\t\t<\/a>\n\t\t\t<\/h2>\n\t\t\t\n                        <p class=\"text-lg font-normal mt-3 text-slate-500 mb-1 line-clamp-3\">Contrary to belief, HOAs are not the killer of deals. As long as you do your homework ahead of time, investing in condos can be profitable. In this article, I&hellip;<\/p>\n\t\t<\/div>\n\t<\/header>\n     <footer class=\"flex justify-between mt-auto\">\n        <!-- Comment Count -->\n        \t\t<span class='flex items-center space-x-2 text-sm' x-cloak x-data='commentCount()' :class=\"parseFloat(commentCount) < 1 || commentCount == '' ? 'hidden' : 'flex'\">\n\t\t\n            <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"h-5 w-5 text-slate text-opacity-50\" fill=\"none\" viewBox=\"0 0 24 24\" stroke=\"currentColor\">\n                <path stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" d=\"M17 8h2a2 2 0 012 2v6a2 2 0 01-2 2h-2v4l-4-4H9a1.994 1.994 0 01-1.414-.586m0 0L11 14h4a2 2 0 002-2V6a2 2 0 00-2-2H5a2 2 0 00-2 2v6a2 2 0 002 2h2v4l.586-.586z\" \/>\n            <\/svg>\n\n            <span x-ref=\"comment_count\" class=\"disqus-comment-count text-slate text-opacity-80\" data-disqus-identifier=\"117764\">\n\t\t\t\t\t\t\t<\/span>\n        <\/span>\n\t    <\/footer>\n<\/article><!-- #post-117764 -->        <\/div>\n      <\/div>\n    <\/div>\n  <\/div>\n\n  \n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Pros of investing in condos<\/h2>\n\n\n\n<p>If you choose condo ownership for your housing investment, there are several good things about living in a condominium:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. Cash flow<\/h3>\n\n\n\n<p>The No.1 benefit of owning a condo is the easier potential for increased cash flow. Condominiums typically are built in densely populated areas such as cities, tourist destinations, and near university\/college campuses. Because of these factors, investors typically can take advantage of the great rent-to-purchase ratio.<\/p>\n\n\n\n<p>They can buy condo units at a lower price and charge higher rental rates, creating a strong cash flow. Vacation rentals can especially result in an increased cash flow for an investor due to increasing weekly rental rates depending on the season and local events. Tourists are typically prepared to pay more when they&#8217;re visiting for specific reasons.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Amenities<\/h3>\n\n\n\n<p>One of the best things about condo ownership is that you split the amenities with the condo community. Condominiums include monthly fees known as a common charge, which covers the common amenities.<\/p>\n\n\n\n<p>Here is a list of several typical condominium amenities:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>24-hour security<\/li>\n\n\n\n<li>Swimming pool<\/li>\n\n\n\n<li>Dog park<\/li>\n\n\n\n<li>Exercise gym<\/li>\n\n\n\n<li>Tennis courts<\/li>\n\n\n\n<li>Laundry room<\/li>\n\n\n\n<li>Electric car charging stations<\/li>\n\n\n\n<li>Bike storage lockers<\/li>\n\n\n\n<li>Playground<\/li>\n\n\n\n<li>Spa<\/li>\n\n\n\n<li>Recycling center<\/li>\n\n\n\n<li>Wifi<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">3. Variety<\/h3>\n\n\n\n<p>One thing that appeals to certain buyers is that condominiums are not as cookie-cutter as someone might assume. In reality, condo communities typically pride themselves on the fact that each condo is unique. However, other markets (such as townhouses) differ in that their properties and homes tend to look the same.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. No maintenance<\/h3>\n\n\n\n<p>The potential buyers for condos (usually) fit into two categories: first-time homebuyers or retired couples. First-time buyers are typically not ready for all the expenses of a home, and retired couples are usually looking to downsize.<\/p>\n\n\n\n<p>The main selling point of a condo community to this target market demographic is the convenience of little to no maintenance costs. They don\u2019t have to worry about upkeep, such as lawn mowing in the summer and snow shoveling in the winter. Repair and maintenance costs are kept to a minimum.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">5. Price<\/h3>\n\n\n\n<p>Condos are a generally cheaper investment than buying a single-family property. Of course, this isn\u2019t always the case due to changes in the housing market. Just keep in mind that since condos are generally lower in price, they are easier to sell in the overall housing market.<\/p>\n\n\n\n<p>Now that you know some of the positives of a condo ownership investment, let\u2019s discuss some of the negatives you need to be aware of.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Cons of investing in condos<\/h2>\n\n\n\n<p>While investing in condominiums definitely includes some pros, you must look at the cons to make an informed decision on whether or not buying a condo is a good investment for you.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. Fees<\/h3>\n\n\n\n<p>In addition to your regular tax payments, interest, and principle on the mortgage, you have to factor in association fees. These fees could range from $100\u2013$300 monthly and play a major role in buyers not wanting to purchase when you are prepared to sell.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Limited market<\/h3>\n\n\n\n<p>Since condos typically appeal to first-time buyers or elderly retired couples, your buyer\u2019s market is narrowed to people from those specific demographics. You most likely won\u2019t be able to produce a bidding war for your property\u2014and a limited market means it can be harder to sell.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Appreciation<\/h3>\n\n\n\n<p>Condos don\u2019t appreciate as much as free-standing single-family residences. Regulations enforced by condo association boards can contribute to this lack of appreciation. Also, the cash flow, while having the potential to be fantastic, can still be unpredictable.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. Parking<\/h3>\n\n\n\n<p>Are you the type of person who likes to throw a party or have family members over frequently? Condo ownership means sparse parking. The lack of privacy and space drives buyers away from the condo community sooner or later.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">5. Comparable sales<\/h3>\n\n\n\n<p>When you sell, buyers will judge you against other condo units in the complex. Even if you improve your unit, they will not be enough to raise your sale price higher than another comparable unit with the same number of bedrooms and bathrooms.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">6. Your unit is a bubble<\/h3>\n\n\n\n<p>When you purchase, your home inspector is there to make sure your dishwasher works and your hot water tank isn\u2019t ancient. That\u2019s it. They don\u2019t check the condition of the building. In fact, unless there is a reason for an association to believe there are issues, no such report or investigation exists.<\/p>\n\n\n\n<p>There are very few ways for a buyer to ensure that the building isn\u2019t leaking or has other material defects. Developers aren\u2019t always in the business of building with integrity. Instead, they\u2019re in the business of protecting their bottom line. This can lead to shortcuts that may go unnoticed.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<div id=\"hero-block_62ee867235a1c\" class=\"first:mt-0 hero-block py-4    has-background has-slate-300-background-color has-text-color has-slate-800-color\">\n    <div\n        class=\"gap-10 lg:gap-20 flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 lg:w-2\/3 \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-theme-slate-color has-text-color has-large-font-size\" style=\"font-style:normal;font-weight:800\">Find financial freedom through rentals<\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-theme-slate-color has-text-color\" style=\"font-size:16px\">If you\u2019re considering using rental properties to build wealth, this book is a must-read. With nearly 400 pages of in-depth advice for building wealth through rental properties,&nbsp;<a class=\"rank-math-link\" href=\"https:\/\/store.biggerpockets.com\/products\/rental-property-investing?utm_source=blog&amp;utm_medium=blog%20banner\" target=\"_blank\"><em>The Book on Rental Property Investing<\/em><\/a>&nbsp;imparts the practical and exciting strategies that investors use to build cash flow and wealth.<\/p>\n\n\n\n<div id=button-custom-event-block_641384b1eb1d8 class='button-custom-event'>\n      <a\n    href=\"https:\/\/store.biggerpockets.com\/products\/rental-property-investing?utm_source=blog&#038;utm_medium=marketing_block\"\n        x-on:click=\"window.analytics.track('Blog Block | Publishing: Rental Property Investing', {\n      referrer: 'https:\/\/www.biggerpockets.com\/blog\/buying-condo-good-investment',\n    });\"\n    class=\" btn-shape inline-block no-underline has-background has-theme-gold-background-color has-text-color has-white-color\" target=\"_blank\">Get Yours Now<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\"lg:w-1\/3 first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md hidden lg:block\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2021\/03\/rental-property-investing.jpeg\" alt=\"\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">7. Rules, regulations, and rental policies<\/h3>\n\n\n\n<p>You <em>have<\/em> to be familiar with the condo association rent policies before investing in this type of real estate. Condo associations have strict rules and regulations you won\u2019t be aware of unless you read through <em>all<\/em> of the governing documents.<\/p>\n\n\n\n<p>Even if you have to read them with a glass of wine, read them! You need to know what type of agreement you are getting into when you buy a condo. Do they allow you to rent out your unit? Are pets allowed on the lawn? Are you allowed to have three kids? Can Christmas decorations stay up for New Years&#8217;? Save yourself from making a big mistake and read through all the rules and regulations before investing in the condo community lifestyle.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">8. Condo association boards<\/h3>\n\n\n\n<p>The strict rules, guidelines, and regulations are put into place by the condo association boards associated with each condominium. This means that your life and your condo unit are completely governed and controlled by a group of people you\u2019ve never met. You have no power.<\/p>\n\n\n\n<p>One way to remedy this issue is to become as involved as possible with your board. Attend meetings, get involved in community projects, and apply for positions on the board. If you want to see changes made, it is your responsibility to be that change. Be prepared, however, to invest a lot of your time, money, and energy. It may take years of advocation and hard work to achieve the changes in regulations that you are seeking.<\/p>\n\n\n\n<p>After having considered the pros and cons of a condo ownership investment, you need to consider several questions before moving forward with a purchase.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Questions to ask before buying a condo<\/h2>\n\n\n\n<p>You have to be your own detective. If you\u2019re about to purchase a condo built in the \u201970s that\u2019s never had its siding replaced, there\u2019s your first clue not to buy.<\/p>\n\n\n\n<p>You want to be prepared with several questions to ask before making your final decision to purchase:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>What does the insurance cover?<\/li>\n\n\n\n<li>Do I fully understand the rules and regulations, and may I have a copy of them to read?<\/li>\n\n\n\n<li>Do I fully understand the monthly fees?<\/li>\n\n\n\n<li>Is there any ongoing litigation?<\/li>\n\n\n\n<li>Do you have a resale package that I can view?<\/li>\n\n\n\n<li>How often do you check your fire alarm systems?<\/li>\n<\/ul>\n\n\n\n<p>Keep in mind that a mortgage lender will also scrutinize the finances of a particular condo community before approving you for a loan.<\/p>\n\n\n\n<p>If you are a first-time homebuyer or an older adult looking to downsize, buying a condo may be a good investment for you. You would have a lower down payment and minimal maintenance costs than if you were to buy a single-family home.<\/p>\n\n\n\n<p>If you don\u2019t fit within this narrow segment of the home-buying population, you may want to consider renting instead of buying. Residents who are renters have even less cost and responsibilities to worry about than the owner does. Rules and regulations don\u2019t affect your ability to move out since you don\u2019t have to worry about selling your unit.<\/p>\n\n\n\n<p>For investors, consider how willing you are to deal with the unique cons of buying a condo before investing in this market. While they can be profitable, condos may also create big headaches.<\/p>\n\n\n\n<p>Overall, to answer the question, \u201cIs buying a condo a good investment?\u201d you need to look at the current stage of life you are in and consider all the pros and cons discussed in this article.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Condos may provide good returns and equity, but they come with a number of headaches, too. Here&#8217;s what to ask yourself before buying.<\/p>\n","protected":false},"author":62787,"featured_media":138965,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7119,5524],"tags":[],"class_list":["post-77701","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-biggerpockets-daily","category-real-estate-investing-for-beginners"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/77701","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/62787"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=77701"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/77701\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/138965"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=77701"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=77701"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=77701"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}