General Thoughts on Condos?

[Jonah Pollock]

Hi All,

My name is Jonah and I'm new to investing in rental properties. I'm curious what the consensus on purchasing a condo and using it as a vehicle for monthly cashflow is? Additionally, are they any more or less viable for cashflow when in comparison to a single family or small multifamily?

Thank you for your time!

[Jason Wray]

Jonah,

Depends on the loan amount, location, and overall HOA fee per month. The biggest take away is the HOA fee if it's over a few hundred dollars that crushes your cash flow/ROI. You have to also look to see if they restrict STR short term renting like VRBO/AIRBNB. STR can help overcome an HOA fee.

You also have to make sure its not a Non-warrantable condo or have any legal or reserve issues.