Would You buy a Condo and rent it?

[Edwin Lopez]

Hello everyone!

I need advice, would you buy a condo and rent it out? My numbers are good as far as ROI. However do condos also have equity that rise like a single family home?

[Greg M.]

It blows my mind that people talk about HOA Dues and Special Assessments like they do.

"I'd never buy a condo. What if there is a... SPECIAL ASSESSMENT!!! (dun, dun, dun, duuuun)." As if owning a SFR magically makes you immune to sudden large costs.

Or, "I'd never buy a condo. The HOA dues will only go up!" I can only guess that these people live in some bizarro world where things like maintenance and repairs get cheaper each year with SFR.

Dues pay for things like insurance, landscaping, pool guy, water, etc. Splitting this cost among all homeowners is usually cheaper for you than paying individually. And it's not like if you owned a SFR you wouldn't have these costs.

And special assessments usually pay for large projects. I'd much rather split the cost of a sewer replacement with 50 other homeowners than all by myself for a SFR.

The key to owning a condo is whether it has a well run HOA. If they are, it can be awesome. If not, it can be hell.