I plan to build 12 town houses. Two sets of six. I am wondering if it is worth looking into setting them up as condos with an association versus just doing long-term rentals. I have experience with long-term rentals but I’ve never done anything as far as setting up a condo. The real estate market seems like it would support selling the condos. Any advice?
Agreed with Seth: you're much better off just building it as a subdivision of fee-simple townhouses, rather than as condos on a single lot. It saves legal work for you and the eventual purchasers, and since it reduces their monthly fees it indirectly increases the initial prices.
I never went vertical but I spent a lot of time laying out condos on some land we owned with an architecture firm.
The best way to structure condos is for fee simple sale, you may not even need an HOA. That lowers your risk as your warranty against construction defects is going to be for a year rather than 10.
That means that the buildings are structurally independent, not attached.
Rental townhouses and for sale townhouses are different products, the for sale ones tend to be both wider and larger overall, with more parking.
Agreed with Seth: you're much better off just building it as a subdivision of fee-simple townhouses, rather than as condos on a single lot. It saves legal work for you and the eventual purchasers, and since it reduces their monthly fees it indirectly increases the initial prices.