My town in New Jersey is going through a large 46 acre redevelopment, for which they are tearing down vacant strip malls and redeveloping with 800 apartment units, retail shopping, mass transit to NYC (busses), technology center and medical building. They are thinking about moving the towns municipal complex here too. The project starts this summer and will be completed in 3 phases over the next 7 years.
Now for my question, right in the heart of the redevelopment location, there are some condos for sale that were built in 1987 (1 bed, 1 bath or 2 bed, 1 bath). Assuming the numbers are in our favor, would these condos be a good investment, particularly with the redevelopment occurring?
My husband (in construction) and I have flipped 3 houses, but we are new to buy and hold game. So far in my Bigger Pockets research, it seems that investing in condos is typically frowned upon due to the uncontrollable HOA fees. We have 0 multi-family homes for sale in our town as we are a suburban town with mostly single family homes, townhomes, condos and apartments.
Condos are tricky many in the forums stay away from them For good reasons but I started out and still own Condos.
You are only responsible for inside 4 walls for the most part.
You have an HOA that help enforces rules
Typically low price entry vs SFH or multis
Low Insurance vs SFH
Low maintenance vs a SFH
HOA dues they will go up and you have no control
When there are issues HOA are notoriously difficult to deal with
Building Finances are out of your control. If financing are bad condo will not qualify for financing I ran into this issue recently when trying to refinance. Too many delinquent HOA dues (one owner that owns many units) I couldn't finish my BRRR and do a cash out refi.
My opinion do the numbers and do a lot of research if numbers make sense Condos can be a good way to start your REI journey
Best of luck
@Raul R. thank you for the insight, this is helpful! Good to know that condos can be successful, but need to put some considerations in around the HOA fees
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