I have been keeping my eyes out for duplex/triplexes/quads under 180k since that is what im currently approved up to on loan since June 2016. Only a handful of them within 25 miles of me has popped up in this price range, but the ones that pop up are in terrible condition or just way over priced and after offering price based on needs of repair and market value in area ive had no luck adding additional rentals to my portfolio.
My question is what are your opinion on Condo's/Townhouses for rentals. I have been seeing a lot of 1 and 2 bed units popping up on the market and selling pretty quickly with room to make a few hundred per door.
1/1 Condo, $185/month HOA, $434/yr taxes, currently rented for $500/Month for $30k
3/2 Mobile, Own Land, $220/yr taxes, currently rented for $850/Month for 53k
I am trying to pick better properties for my rental portfolio, because my current 5 houses i rent out are all properties i bought while in the Military to live in and just rented them after getting orders somewhere else. Im asking about the above examples because i could buy the 1/1 condo for cash now, since my lender won't touch anything below 65k
We bought into a condo development a few years ago. We were responsible for the roof and for the inside of the unit. The HOA was responsible for the outside and the grounds. There are parts of this arrangement that we cannot control, such as how the HOA is operated, how the fees are increased, and in some buildings the HOA regulates the percentage of rentals to owner-occupied units are in the building. I was looking at a beach-side condo in the past year where the HOA fees rivaled the monthly mortgage payment, and units could not be rented for less than 6 months, if I remember correctly. They also had a mix of rentals to owner occupied units of 20%. The HOA would have to approve the tenant. Those provisions made it challenging to rent as a vacation rental, as well as for a conventional tenancy.
Who would you rent the 1/1 to? I find that those units attract a more unsavory clientele, whereas the 2/1 is great for seniors as well as for the younger set.
I have never owned mobile homes, so cannot speak to them.
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