I read the books, and watched some videos about real estate investing. Now, finally, I want to start the move. I'm looking for a condo in Union City, West New York, North Bergen, Palisades Park, Ridgefield, Fort Lee where it is easy to commute (30 mins by bus) to Manhattan. And, definitely, I'm looking for a condo that generate positive cash flow.
I thought about a multi-family property however, since this is my first purchase and I don't have any experiences in mortgage, insurance, tax, renovation, laws, etc, I think it would be better idea to invest in a condo instead.
If you want to share any of your advices or recommendations, please feel free to leave the comment.
Rental Property Investor · Long Island, NY · Member since 2015 · 490 posts · 301 votes
7y
@Joohyong Han I really don’t like condos for investment purposes especially in the areas you mentioned. Taxes and HOAs eats you up and a lot of condo buildings have restrictions on wether or not you can even rent it out. I know they are cheaper than a multi family but unless you are getting a crazy deal at rock bottom prices you will find it hard to make the numbers work. Consider house hacking in those areas although there really aren’t many many multi families in fort lee there are a lot in UC.
Rental Property Investor · Long Island, NY · Member since 2015 · 490 posts · 301 votes
7y
@Joohyong Han I really don’t like condos for investment purposes especially in the areas you mentioned. Taxes and HOAs eats you up and a lot of condo buildings have restrictions on wether or not you can even rent it out. I know they are cheaper than a multi family but unless you are getting a crazy deal at rock bottom prices you will find it hard to make the numbers work. Consider house hacking in those areas although there really aren’t many many multi families in fort lee there are a lot in UC.
Real Estate Agent · New York, NY · Member since 2015 · 401 posts · 235 votes
7y
I have many condo investor clients in NJ and NY. They typically put down very large down payments, pay all cash, or they've become accidental landlords by turning what was once a primary residence into an investment property. As mentioned above cash flow is limited by high HOA fees and taxes unless you make a very large down payment. On the flip side condos in the areas you mentioned are typically pretty easy to rent out, the tenants are relatively easy, and appreciation has been very strong. Most important thing with condos is doing proper due diligence on the HOA (financials, assessments, capital improvements, warrantability, etc).
Investor · San Diego, CA · Member since 2014 · 12 posts · 1 vote
7y
I have condo in UC for exactly same reason - it was my first investment. The cache flow is positive but I paid 40% as mentioned above. Yes, it is not best in cache flow but pretty easy to manage and yes, it appreciates.
After few years, I can't say that I learned much about investment from that condo. It seems as an easy step to the right direction but if the purpose is to go further it may be better to start with multiunit.