Buying Condos: Good or Bad Investment?

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Is buying a condo as an Investment property good or bad?

I'm in a market when SFR's are on the higher end, and condos on the lower end. Why is that? And are there any private lenders that are interested in this type of venture?

There are plenty of upsides and downsides to condos and it all depends on what you want your portfolio to look like and the potential of scalability.

Starting with the upsides:

1. The ease of maintenance is convenient 

2. Typically condos aren't as hot of a commodity so there is more negotiation and wiggle room when closing a deal.

3. Tenants usually like the amenities included such as parks, pools, gyms.

4. Much cheaper than an SFR or MFR

Now some of the potential downsides:

1. Poor management and high fees can eat into cash flow

2. Joint tenancy can cause problems. Noisy neighbors and so on.

3. Virtually no opportunities for ADUs or adding square footage

Depending on your REI strategy this could be an easy way to dip your toes into real estate. Or a money pit.

Of course the answer is very market dependent.  The big thing to watch out for with condos are the home owners associations.  HOAs can be very controlling and make decisions that negatively affect your investment.  Generally, you own what is inside the 4 walls, but the rest of the building and associated policies are beyond your control. I wouldn't rule it out completely, but do your due diligence.