I live in South Florida and interested in buy and hold condos as rental investments.
I would only be interested in purchasing affordable housing type condos.
Was wondering if someone could chime in on his/her experiences. Have you used bank financing, hardships etc?
Thanks for any info/advice.
I have two condo investment properties. Have a 30 yr bank loan on both of them
be very careful about condos. A lot of them have rules about the number of rentals allowed in the community due to financing requirements. The hoa fees can be expensive too. While we own in hoa "land" it certainly isn't happily or our first choice. While they made sense at the time and we do still invest in hoas we are "very careful" as the fees can quickly a) eat in to the profit b) you would be suprised how much more traditional home you can buy!
In what price range and areas are you seeking to purchase the condos in? I've purchased numerous condos down here so will be happy to chime in if you have any specific questions on certain condos/communities.
Thank you for your quick responses.
@LORETTA E. we are currently holding and managing properties in South Florida. Two of them were aquired in the past two months with HOA. But we are not all in with condo properties. We had diversified our exposure with additional single homes. As others have eluded in the prior posts, keep an eye on HOA/Condo rules. The worst mistake you can make is not to review boards bylaws, rules and regulations. Be part of their meetings - dont disappear and get to know the Pres and Vice Pres. In the areas we are in, the ammenities and property management play a big role in the eyes of renters. This is something we study and understand before getting in. All the best!
I would be interested in purchasing in the cities of Tamarac, Plantation, Sunrise and maybe Hollywood.
Thank you Josh
looking for under 50k
Thank you for the advice Brian Gutierrez
@Loretta Etienne, I personally will stay away from Condos because of HOAs. Even though you own the door the HOA owns the building and therefore has the final say on things like assessments. I think if you are a homeowner and willing to deal with the HOA it is one thing but as a buy and hold there are a lot of other obstacles.
Yup, pretty much as many stated above, keep off condos, the association can change things over the next years and you are stuck with a mortgage. HOA can skyrocket, rules may be put in place with rentals and you will be turning from happy to angry overnight AND in a bad position to sell to another investor.
Hey @LORETTA E. 's advice. HOA's can literally destroy your cashflow, and you can get a lot more bang for your buck with a small multi-family, 2-4 units.
@LORETTA E. as others have said..... Condos can be tricky especially in Florida. It isn't just the HOA fee's but also the financing can get complicated if too many condos are in foreclosure in the building as well. Make sure if you choose to go this route that they are financiable.
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