Flipping Condos for profit

9 Replies

It can be done, and is very similar to flipping single family, it just takes being aware of all the HOA rules. It can require less up front because you are only buying a unit and not the land but the holding costs can be higher especially with a big HOA.

You aren't going to find a lot of information that differs from regular SFR flipping the only big difference will be the HOA. Every HOA is different so you will probably be looking at things on a case by case basis.

@Aaron K. I have experience in this area, specifically condos. I look at the HOA as a big brother who generally want to improve the condo complex and are thankful to see someone improving the units. My last deal closed Sept. 2017. $83.5k. Rehabbed it for $20k. Decided I may keep it so i rented for 5 months, then sold it for $165k. Doing another now should be the same results. Buying for $85k. Rehab should be $25k and then sell for $175k. Do you have any specific questions?

Hi @Langston Washington ,

Very difficult to flip a condo, but it works really well in the BURRR strategy. Flipping one is not impossible, just very difficult. The community will have other identical units that have sold that act as comps. So buying retail isn't the best idea. On the flip side, buying distressed isn't a great idea either. People who are in foreclosure or in a short sale are not paying their mortgage, and with that, not paying their HOA. Most of time, deals fall apart because no one wants to pay the delinquent HOA balance. That eats away any meat left on the bone.

I recommend buying a condo that's 10-15 years old, so you know that the remodel won't be too terrible. Afterwards, rent it out for 2 years, to pay your overhead till you sell it for profit.