Hello BP nation. Good time of the day to everyone. Browsing ideas how to get in to the REI investing. A little about us: we are family of 3 plus crazy bulldog. My wife and I both work in medical field and both have big DREAM becoming financially independent.

Anyway, I recently posted question on how to start investing with 10k and received a lot of great advices and opinions. The only one way no one mentioned to start with condo or apartment. Is there anyone who did so? I understand that one unit will not bring me much, but I feel the urge to start somewhere and this would be way cheaper than start with a house. Currently located in NorCal and prices are high. Please share your experiences and thank you 🙏

I've helped a number of investors with condo purchases for buy and hold investments. It's often more difficult to make the numbers work, because of the condo owners association fee. There are also some additional challenges with financing, if there are too many investor owned units in the building. However, having a third party take care of the roof, structure, grounds, amenities, etc. is a huge benefit. 

If you can find one where your numbers work well, they can be somewhat more predictable, because you don't have those large capex items. It's important to check into the finances of the condo owners association to be sure you're not at risk of special assessments. Condos can be great for flips as well, because there are far fewer major items that could need repairs.

"The only one way no one mentioned to start with condo or apartment. Is there anyone who did so? "

To me it's a strict numbers game and if you can get the return, great. Only issues with condos is to include the HOA in expenses (they can be expensive) and if the HOA allows non-owner occupied units.

Having too many rentals in a project can screw up financing on sales since some banks don't like that. So understand what the HOA allows first.

@Timofei Kadkin I've been very successful with condo rentals. However, it's not a get rich quick strategy but more of a way to build wealth over time. 

I also bought at the right time and at the right numbers. I purchased 25 condos at trustee sales in the Inland Empire between 2011 and 2013 for $11,000 to $60,000, which sold for $100k to $250k at the peak of the previous market. It took several years before we had them fully transitioned to performing rentals and built up enough reserves to start taking draws.

My partner and I are still holding on to 19 of them. Rents have doubled and values have at least tripled. Great long term play.

I don't buy rentals anymore because I like notes a lot better. With $10k, I think you'd be better off investing out of state where things are less expensive or consider investing in a fund or syndication that invests in something that appeals to you. 

Or, if your family is on board, you might consider some type of house hacking, maybe a 2-4 plex. That's another great way to get started.