I am new to BP, was lead here by the book Rental property investing By: Brandon Turner. I want to jump into purchasing a rental property. Looking to see if anybody has any advice for me on purchasing a condo.Is this a good starter property or should i save a little longer for a multi family?
My thought on Condos is the baby boomer generation starting to look for retirement homes that they don't have to worry about all the maintenance, thinking condos are perfect for them.
Rental Property Investor · Salem, OR · Member since 2017 · 696 posts · 660 votes
7y
@Kyle Garland Always go bigger if you can. Up to 4 units should allow you to get the same FHA down payments as a condo and the cash flow should be much better. Also, HOAs can be a real pain in the ***.
@Kyle Garland Always go bigger if you can. Up to 4 units should allow you to get the same FHA down payments as a condo and the cash flow should be much better. Also, HOAs can be a real pain in the ***.
Very true. I was a little nervous about the HOA fees. Those or always subject to change. Would make it hard to forecast my ROI over 10 years.
@Kyle Garland GO BIG! Err, well as many units as you can (4 is ideal) same loan and the cash flow and efficiencies really add up.
Thank you for the advice. Now i have the decision on purchase what I can currently afford or wait for some time for the larger house. the 20% down payment can be a killer when it comes to more expensive houses.
That would be an ideal situation. Unfortunately, that is not an option for me currently . I have a mortgage and three kids, moving my family around sounds less than exciting. If only i had this ambition 5 years ago, house hacking would be perfect.
Realtor · Rocklin · Member since 2016 · 128 posts · 67 votes
7y
Lots to consider when purchasing a condo. High HOAs fees... however, these usually take care of most of the major cap ex items of the unit. More volatility in the market value of condos. Also be aware of special assessments that tend to occur with condo ownership. Also, be aware of the possibility of the rules and regulations of the condo association changing to not allow you rent the unit any longer.