Buying a condo for a rental

[Peter Mckernan]

Hello all:

I am currently looking into a second rental investment and was wondering if anyone can throw in their two cents about the pros and cons about buying a condo for a rental. Firsthand experience or not, any information is more than welcome. 

The pros for me are that it's cheaper, in a good area of a good city, in a good rental market, and is in good condition.

The cons I know can be getting financing (conventional loan for me), getting hit hard by depreciation when the housing market tanks, the lawsuits the condo complexes can get involved with due to some liabilities, and HOA fees.

Let me know your thoughts about the idea. 

Thanks,

Peter  

[Brian Ortins]

@Peter Mckernan I have invested in condo rentals and I look for over 51% owner occupied (opens up financing options for you and for future when you sell), prefer FHA approved HOA, always look over the financial statements and compare to other HOAs in the area. I always want to see high reserves to prevent future special assessments, or I like to buy after the major renovations have been completed and the special assessment(s) are paid off. Feel free to PM me if you have specific questions.