Hello fellow BP members. I am new to the Real Estate investment world and have come across some condo and co-ops that I could possibly purchase and use as rental incomes. I was wondering what everyones thoughts were with the positives and negatives on this kind of investments. Thanks everyone.
So we have several condos and townhouses.
I have mixed feels. Its somewhat easier to rent, as there are all the perks to the complex. And there is less to maintain, and cost to get in is generally cheaper.
The downside, is the HOA fees will eat a lot of cash flow, the turn over is higher I've found as they would rather live in a house than a complex. And talk about a beating when it's vacant. HOA, note, taxes, insurance. It'll eat your lunch in a hurry. We are moving away from them as they aren't fitting in our model as well as we thought they would. And if the complex is mismanaged things really turn ugly.
You may consider out of state investing. Birmingham is pretty cheap to get into. Worth exploring
Hey Josh, thanks for the info, I have been looking at some college towns so I think I would be ok with vacancys, If any BP members are investing in college towns, please share. I will definetly check out the birmingham area.
Here is a good thread on what risks to look out for in condo investing and how to analyze vet condo deals:
They were good for me starting out due to low price point and overall lower barrier to entry, but now shifting to SFRs because they offer the maximum control. Some risks I saw come to reality: increasing condo fee, board threatening to pass rental restrictions on units, including on existing landlords/owners. Luckily landlord advocated against it but it was touch and go at annual meetings. Good luck!
Awesome, Thanks Jeff for the info