Condo investment as first time buyer??

[Matthew Murray]

I am in the nc Raleigh Durham market which is crazy right now. I am a young first time buyer and I want to start my real estate investment journey. Right now I am considering buying a condo that is built to rent out to students essentially. This place already has tenants who have signed a year lease and would be immediate cash flow. I’m just not sure if it’s smarter to go for a single family or this condo? Thanks in advance for any insights!

[Amber Bowden]

Hi Matthew,

I live in Raleigh and purchased a condo here in January. It already had a good tenant in place and outside of some minor fixes, was in pretty good condition. That said, as Grayson pointed out, the HOA fees are unpredictable. At the time I went under contract, due to some poor communication with the seller and their agent, I didn't find out that HOA fees had been raised for the year until time for closing, so that changed projected cash flows a bit. It was definitely a lesson learned on a lot of different fronts. While I don't regret my decision to buy, I don't know that I would go the condo route again. No matter what you decide, just know why you're doing it. Hope this helps, and happy to chat more if you'd like.

Amber