Condominium. Should I buy or not?

Question

What do you guys think of condos.

I really want to get purchase one to live in it and rent the other rooms. 3 bed 2 bath.

It’s in an awesome place but my only thing is the HOA FEES.

I’ve done research, but I want your view.

Is it easy to rent in case I move out at some point, are HOA FEES even with it?

Thanks

Anthony Dooley · Answer

The main thing I don't like about condos is the HOA. If run correctly, great. If not, you are in a world of crap. Also, they have rules about renting. Only a certain percentage of the property can be rental. Lots of rules with the HOA.

Bjorn Ahlblad · Answer

@Michael Acheampong It is bad enough that the government tells me how to run my business-and an HOA too? No thanks. Then there is the dues. SFR and duplexes appreciate better. The HOA boards are as corrupt as all get out. They control the trades, they make the by laws and can vote to change them. The Board members make sure things work in their favor not the individual owners. They can control your ability to rent your unit is based on seniority and availability of rental units-you could be out in the cold with no say over when your unit comes up to rent-sorry I'm ranting. There is a lot of information and past threads on this site for you to read. Anyway all the best!

Travis Watts · Answer

@Michael Acheampong Good question. I used to own several condos, townhomes etc as rentals in addition to living in a few. I can honestly say, nearly ever HOA was an issue for me, whether it was sending me a fine for a weed in the yard, or giving me a hard time for renting out the unit, or a special assessment, or a lawsuit with a builder, or an increase in dues. The list goes on and on my friend, but my advice is to stay away from the HOA. Best of luck

Kurt Jones · Answer

The above opinions are spot on. The Condo HOA fees and the people behind them are a huge pain in the a$$. I have a condo as a personal residence but would never suggest someone "invest" in one, especially a newbie.

James Murphey · Answer

Great question.  We currently rent a townhouse with HOA fees.  Looking at the numbers of when our property was first purchased, and the current rent it is around a 1.5% property.  Pretty great cashflow.  Living here and seeing how, and who runs the HOA it makes me very weary about ever investing in a property like this one.  However, knowing our landlord, and hearing all of the headaches that come from the property manager I would avoid investing in a similar unit or situation.  I know another person who had to pay 10k out of pocket to replace all of the old windows in their complex.  That would eat up any profit for a while if someone was renting the unit out.  I think investing can work, but I would want to be on HOA Board, I would want to know the HOA's financials, specifically the reserves.  I would want to feel comfortable with the property manager.  There was a podcast of an investor who mostly purchases condos/town-homes.  She is successful, but she is very involved with the HOA.  I think this is the essential part.

Tj Hines · Answer

@Michael Acheampong yes you are right. The deal breaker in these deals tend to be the HOA fees. Now if you plan to buy a bulk of these giving you majority of the ownership throughout the community as well as you controlling all seats on the HOA board, to where you have all power of control in decision making, then it may make sense for that investment. I don't know maybe it's me, but I would definitely stay away from these type of deals, unless you can identify its a for sure no brainer.

Justin Goodin · Answer

You are going to live in a condo and rent out the extra bedrooms to tenants? Yikes

Brent Paul · Answer

You really need to be careful as some condos have rules against renting.  Yeah it's nice to have the outside taken care of, but when they consistently raise your hoa fees every year there is nothing you can do about it.  Some members on the hoa board can really be a real pain in the butt.  Personally I don't buy townhomes or condos for that very reason.  I don't want a group of people telling me what I can do with my house and who I can or can't rent to.  It will vary by city and state.  But more and more being built are not very renter friendly.

Condominium. Should I buy or not?

Most Popular Reply