tampa, FL · Member since 2011 · 14 posts · 0 votes
I recently have came across a 1 bedroom 1 bath condo 900 sqft in excellent condition. Forclosure and its priced really low. The Hoa fees are 110 bucks a month which is extremely low. The cash flow on this property will be excellent. I want to use this property as a rental but im a bit worried because its a 1 bed room and im concerned about finding a renter. i would like to know what you guys think. should i look into it or keep on moving to another property?
Ray, this is a very specific question. There's no wrong or right answer. Having said that, I would never buy a condo, ever. But that's just me.
Give us some numbers. What will it cost? What will it rent for? Will you pay cash or borrow money? How much will you borrow?
Do you know what percentage of the building is investor owned? What other units are for sale? What has sold there recently? Find a Realtor with an active listing in the building and get on the phone.
It should be fairly easy to find out what the rental market is in your neighborhood. You could start by hopping on Craigslist and seeing what's available and for how much. Do you see a lot of 1BRs or only a few? What kind of people would want to live in that condo? Single person? Retired couple?
There's a rental market for almost any property if the price is right. It all begins and ends with the numbers. So, what are yours?
Ray, this is a very specific question. There's no wrong or right answer. Having said that, I would never buy a condo, ever. But that's just me.
Give us some numbers. What will it cost? What will it rent for? Will you pay cash or borrow money? How much will you borrow?
Do you know what percentage of the building is investor owned? What other units are for sale? What has sold there recently? Find a Realtor with an active listing in the building and get on the phone.
It should be fairly easy to find out what the rental market is in your neighborhood. You could start by hopping on Craigslist and seeing what's available and for how much. Do you see a lot of 1BRs or only a few? What kind of people would want to live in that condo? Single person? Retired couple?
There's a rental market for almost any property if the price is right. It all begins and ends with the numbers. So, what are yours?
I don't have any experience at buying condos but I would say go for it if it's priced right.
Depending on what state your in, you should be able to find a student or a single person as a renter.
If there's a college near, I suggest posting some flyers around campus. You could even go on craigslist and find someone to pay to put flyers up around town for you.
With any investment there is positive and negative things to evaluate. Many investors stay away but I have found that especially in auction situations that this creates much bigger discounts than single family houses relative to their value. The HOA fees continue no matter if it is vacant or not but the counter is I believe they are easier to rent out for more money. I feel like we are very efficient at renting our properties quickly so I am not as concerned about vacancies. Our company has been able to clear almost double on our condos and townhouses than with our single family rentals. Part of this admittedly is paying less when buying the property as stated above but a big portion of it is the higher rents. The biggest thing to watch out for is an HOA that will not allow rentals at all or only a percentage of the units. MAKE SURE TO FIND OUT BEFORE BUYING!! I learned this the hard way with one of the first condos I ever bought.
NO.
1. I wouldn't buy a condo. (due to hoa fees, you'll never actually own it F&C and ALWAYS will be facing "special assessments".
2. I'd never buy a 1 bedroom. Extremely high turnover, no flexibility for added wife or baby. Also, I have no interest in looking as a student as my best option for renters. Been there done that!.
Add to this that in FL, there are many "fractured" condo projects, as well as upside down condos where owners are not paying HOA fees and nothing can be done to fix that problem. Inadaquate fees cause pools to be turned into flower gardens, security gates to be shut down and other amenities cut due to lack of fees to pay for them.
Other than the above, I love condos, TIC. Rich
Im not an investor in Condos, so I cannot give great advice to should or shouldnt. BUT I will say as a former renter in Chicago, of COURSE I want a 1br. Im a young, single professional- and of COURSE all my peers are as well.
We need to live in the city (no car needed) near where all the jobs are, near all the good restaurants, and with a view.
That being said- in sarasota FL, I would say no way. The rental market here is more roommate or spouse situations.
So, look at the market you are in and the demographics you are aiming for...
NO.
Add to this that in FL, there are many "fractured" condo projects, as well as upside down condos where owners are not paying HOA fees and nothing can be done to fix that problem. Inadaquate fees cause pools to be turned into flower gardens, security gates to be shut down and other amenities cut due to lack of fees to pay for them.
I've heard some horror stories about this in the Orlando area...
This is a stale thread but thought it might be worth bumping with a fresh perspective. With the explosion of Airbnb, I wonder if 1BR condos will become more in demand among investors to be used as vacation rentals (i.e. at least those in desirable areas, e.g. near beach, mountains, etc). Given the potential for increased cash flow through that strategy, I tend to think so. Curious what others think...
Rob Condy condos aren't Airbnb friendly because the HOA bylaws. I would only tell people to buy condos for corporate rentals. You can turn them into cash cows if you list them as corporate rentals. I know people that cash flow $1000+ /mo with 1 bed 1 bath condos.