Hello BP community,
I am looking for my first rental property and my agent keeps talking about Condos/Townhomes that are looking like deals based on purchase price and minimal rehabs they may require.
Many investors I know are shying away from these types of properties, but I am trying to weigh pros vs cons.
Anyone with good or bad experience please do share. Looking for constructive feedback.
I suppose it just depends on what you are looking for. If the numbers work for you, it could be a good investment - but if you want to get into multi-family then it might not be what you are looking even if the numbers work. Consider what you're long-term goals are, and see if having a condo/townhouse be your first purchase fits into those goals.
Another consideration that can be a pro or con depending on how you look at it - HOA fees or Condo fees. They are an additional expense, but could save you the hassle of landscaping, snow removal, etc. depending on what is included. I have no experience admittedly, but I've heard that sometimes roof replacement can be included and sometimes not - and that sometimes the HOA or condo association will just bill the residents for the replacement. If you do decide to go this route, make sure to get all of the information and factor it into your deal analysis.
@Mike Chevalier Thank you for your input. I will def. factor those in.