Investor · Saint Paul, MN · Member since 2015 · 14 posts · 0 votes
Hey guys.. just wanted your thoughts on this. It's probably been posted about and asked many times over, but I was wondering what you all think about investing in townhomes or condos compared to SFR In the MN twin cities metro area. Any one care to share their own positive/negative experiences? We initially just wanted to focus on purchasing our first multifamily this year, but looking at other options that also make sense. Maybe on the eastside metro ie Woodbury, Oakdale, Cottage Grove, etc.
I am in the east metro and sending direct mail to townhouse owners built prior to 1998. I am looking to pick up rentals. I like the idea of less maintenance with a townhouse vs a single family residence. It's nice to just pay a flat HOA fee that takes care of a lot. Be careful of buying in an association where there could be a lot of upcoming assessments. good luck guys!
I like the idea of less maintenance with a townhouse vs a single family residence. It's nice to just pay a flat HOA fee that takes care of a lot. Be careful of buying in an association where there could be a lot of upcoming assessments. good luck guys!
Now that is a really interesting viewpoint Charlie. Most of the investors I've discussed this with have the opposite point of view. I frequently hear that the HOA in most cases will kill a deal.
Just as you say, you can run into special assessments at any given time. Have you been using this strategy long?
The other thing I hear is that so long as you plan on selling no time soon, which of course makes sense for buy and hold, it can be made to work. But that a big part of the downside is the inability to sell when you're ready.
By the way, I grew up in Minnetonka, and I SO miss the snow....
Kang, it really depends on the deal. I like condos, I currently own a few and insure over 250 condo associations in MN. One thing to make sure you do is check to see if the association is financially solvent. Making sure there will not be any assessments in the near future that will in turn be assessed to the owners. If you do your homework on this, condos/townhomes can be a terrific investment. I hope this helps. Let me know if you need me to review any association financials for you. Goodluck