Should I stay away from Co-ops as an investment? Deal Analysis:

[George Torres]

Hey Guys, I'm trying to evaluate a deal here:

-It's a coop that I'm putting an offer in for 275k. It's 1800sqr ft, 3/2.5, and needs about 25k in rehab. It's in North Hollywood.

Is there anything I should be wary of besides the fact that I can't rent it out? Other comps are going for 320-350 but they're SF and Condos. Seems like a good deal to me but I think I might be missing something here. What do ya'll think? Thanks!!

[Matt R.]

@George TorresThe co-ops are generally less because of the finance and rental obstacles. Perhaps you can add a roomie IDK. I would not be opposed for personal residence as this would play in your favor and keep the building full with owners vs rentals. So you save money on the buy however that will also be relative to when you sell. Fortunately, the market in NOHO should always be strong for owner occupied too so these sell at about the same pace as condos I think. Most rental investors don't like because of the financing and rental restrictions still.  They don't want to live in their investments. This is a little different in your case.