Starting out with a condo

[Marc Celoy]

I am rather new in the real-estate investment and I am looking to buy my first property. I am unsure whether purchasing a condo in an area where I know for sure the housing market is on a continual steady growth. It would be my first rental property if I were to go ahead and purchase it. Any advice on buying condos help.

[Andy Mirza]

My first real estate purchase was a condo and it worked out very well for me. I also bought condos specifically for buy and hold in 2011-2013 when condo prices bottomed out in my area. It was a great move and I have a great equity position and cash flow using other people's money. Biggest concerns with condos: Make sure they allow rentals if that is one of your goals, check on the availability of bank financing (FHA, VA, conventional) as that affects your buyer pool, Get a feel for how the HOA operates. HOA boards come and go but, if you get a bad one, it can make life difficult for a while. Condos are usually the last to benefit from a booming market and take a nose dive during downturns when banks stop lending on them.