Wholesaler · Columbus, OH · Member since 2016 · 62 posts · 8 votes
Hi everyone! On a previous post I was asking about house hacking, but my initial idea consisted on buying townhouse/condo in Columbus Ohio . Here's my two questions:
- I've heard people say that Investing in Apartments condo/townhouses its a headache because of many reasons. But prices here in Columbus for apartments are good, compared to some SFH, and since this is my first investment, I rather spend as little as possible. Whats your opinion on that?
- I understand the concept of a FHA loan, and live in the property the 1st year, but, how big is the difference from that to buying the apartment with an Investment Loan? I don't mind the 25% down payment if I can start renting the unit right away. Is the Interest rate of a Investment loan that much more?
Investor · Hilliard, OH · Member since 2014 · 60 posts · 25 votes
10y
The big advantage of a FHA loan is the low down payment to get in, BUT they have a bunch of rules and regulations to follow and "standards" that the house needs to be met before they lend you. You kind of have to weigh these options - if you have a good deal out there, will the seller fix things to make it FHA ready?, or will they not even entertain any repairs? The FHA rate is not necessarily lower, you'll have to shop around. Conventional loans are probably the cheapest. If you have the down payment, go with whatever rate works for you.
Regarding condos, I am biased, so take my opinion with a grain of salt. I don't like them for investing in Central Ohio. However, if you are going to live in it and you like the condo lifestyle, absolutely go for it. What I hate about condos is that the association generally has too much power and can dictate if the condos can be rented or not, increase the fees, etc. I am getting into RE Investing to maintain some control over the numbers, condo investing does give me the control I am looking for.