It has its ups and downs for sure.
The major pros for me is that condos/townhouses are my price point. Single family homes in my market are too expensive for me to invest in. I can save $30,000 for the down payment on a new condo and get it in service and cash flowing MUCH quicker than I can save $75,000.
Condos and townhouses also rent very quickly here. I have no problem filling my properties and keeping them full.
The major downside, of course, is the HOA. Everything from neglected maintenance to poorly managed financials to tyrannical despots on the board can cause your investment to spin out of control.
I resolve that issue by serving on the board of directors for my condo/townhouse units. I am much more in control of my investment as 1 of 5 or 1 of 9 directors than I am as just some person sending in a payment every month. Granted, it's a lot of work, but ultimately worth it to me.
Hi @Michael P.
I'm a condo investor, and I have two of them and am a big fan.
You have to know what you're doing on the front end of buying them. Make sure you buy in a condo that is fannie mae approved, that guarantees an exit strategy, and a increased chance of appreciation. You want the community to have fully funded reserves, a clean history of assessments, the last 12 months of board minutes so you can foresee any assessments/issues.
Condominium is a definition of ownership. I own from the drywall in. I don't have to worry about maintaining the exterior what so ever. I only have to maintain my AC, water heater and appliances. My maintenance and cap ex costs are drastically reduced.
I get to offer my tenants the amenities offered from the community, like the pool, gym, covered parking, security gates, security guards, and some of the utilities like water and trash are included.
Most of all, I like communities that have on-site management. Why? Because they are there everyday monitoring my tenant. I recently had trouble with one of my tenants, and got with my HOA and they told me my female tenant had their boyfriend staying in the unit. He isn't on the lease, never had an application run, and I wouldn't have known he was there without them. I ended up researching him and found out he had an arrest record. I was able to deal with the issue before a problem came about.
Let me know if you want to chat more in depth.
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