Pros and Cons of purchasing Condos for Rentals
I live on the coast of California and the price of real estate is extremely high. Finding deals to build a portfolio is tough. I recently owned two rentals but sold them and am now looking for other opportunities. There are some cheaper condos that are going on the market (below $200K) that would produce really good cash flow. For those of you who have rented condos what are the benefits and drawbacks of doing so?
According to the calculator on here, I can get a 10% ROI per year on each condo I buy and rent.
Most Popular Reply
The big thing with condos are the HOA fees and the viability of the HOA. If all the roofs need to be replaced, you (and your neighbors) can have a special assessment done and you need to pay $xx thousand into replacing everyone’ roofs.
Unfortunately, you don’t have a lot of control over how well the HOA finances are managed and can get blindsided.