Condo as investment?

[Ashley Lewis]

I have found a 2/2 condo listed for 65,000 which I was thinking of offering 50k. The payment should be around $360/month (10k down) plus $116 in HOA fees. There is a similar unit for rent now for $800/month. This would be my first deal. Is there anything I should be wary of with condo deals as investments? Or anything else that doesn't look right here?

[Christopher Giannino]

@Ashley Lewis

What @David Shapiro has just laid out for you is definitely a great starting point. I want to just follow up and say that finding out as much information as possible regarding the HOA would be beneficial. How old is the community and has there been any recent updates such as roofs, walkways, siding, etc. Is the community under a property management group? If so, for how long and has it been a beneficial to the community? Are there lots of rental units in the community? Does the HOA allow rental units? What are the bylaws of the community?

Some of these might be easy to find out such as asking the listing agent or the HOA and some might be a little more complicated and require you to do the leg work. Best of luck!