First investment: condo vs duplex

[Xiaowei Li]

Hello BPers,

I am a newbie to investment and seeking your advice here. Right now I am considering buying my first investmemt (buy and hold) to gain some experience. There are condos/townhomes and multifamilies in my area. Multifamilies were typically built in late 1800 to early 1900 and condo/townhomes are newer. Condo/townhomes are required to pay HOA fees ranging from $200-$500.

Any suggestions from experienced investors here on property type and the criteria I should keep in mind when deciding whether to make an offer?

Thank you!

[Jaron Walling]

@Xiaowei Li I don't know your market but in mine condos just don't appreciate. You pay HOA fees, get less cash-flow, have to follow rules, and don't see the biggest gain when you sell. If you want to house-hack for a few years sure, that's fine. But if you want cash-flow for 10+ years and icing on the cake at the end I look at multi-family or at least quality SFH is C/B+ class areas.

In my target neighborhoods duplexes that previously cash-flowed ALL THE MONEY are being purchased by new investors. They flip them into SFH because market prices have sky rocketed and rents can't keep up. Buying a condo at market prices makes my brain hurt. 

I don't claim to be a super experienced investor but I know my market, ride around via bike, and see what's happening on the streets. That's how and why I choose to buy in a cheap neighborhood.