Condo investment advices

[Yvonne Acosta]

Hi everyone! It is a good idea to buy and rent Condos. I can buy a Condo for less than 100K but houses are over 200k . I am in Fort Myers, FL area. I don’t have problems getting loans to buy a property but I don’t have the 25% down that the banks require or the capital to fix  it . Any advice? Thank you 😊 

Yvonne 

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[Nadia O.]

@Yvonne Acosta i owned a condo. I've rented out my place as STR first and the law changed, therefore, i converted my place as LTR. So I can share some pros and cons

pros:

- HOA takes care of all the maintenance in exterior areas. That's a big plus. We have huge amenities such over 20 pools, tennis courts, playgrounds, and many more. Everything is beautifully maintained. So HOA def doing a great job.
- Condo is a lot more affordable if you're on a budget. however the resale value doesn't get as high as SFH which is a con. I purchased my condo in a class A neighborhood. I wouldn't be able to afford SFH. So in this case it was a great buy. The rental rate in our city increases every year.
- Condo is a great rental due to the amenities...well at least mine is.

cons:

- HOA fee gets a raise almost every 2 years. There's nothing you can do to prevent it. And it is an added cost to your monthly mortgage payment. it sux. However, my renter pays whenever it increases. i just tag in to their monthly payment which is a pro.
- There are pretty much restrictions & fees for everything...i mean it. you better know and read all the rules before you purchase. Fees....for having certain plants (yup...you heard it right!), patio looks diff than others, garage untidy, too noisy after 10pm, and many more. When things look diff and effect the exterior of the house, HOA gets involve
- no STR allowed...not anymore in our city. LTR still ok
- Our community is old. We have plumbing issues in our community...almost everyone. The recent big one for me was upstairs toilet leaking and went undetected. it leaked to the bottom unit. Now i'm responsible for all damages...other unit as well. Its a big headache. Imagine paying damages for both units...it's a lot! I'm ready to sell my place due to this problem.

if i knew what i know now, i would stay away from purchasing a condo. SFH accumulates bigger equity each year and in a much faster rate than condo. for $100k more you get SFH, I would do it. you don't need 25% down payment. 20% is enough or even 10%. Yes, you may be hit with PMI but at least PMI disappears after you get 20% of home values. HOA stays forever. Also you need to reserve at least 6 month worth of mortgage payments just in case. So in that case, you really cannot down 25%.

You need to shop around. Call other mortgage loan companies. Tell them what the other companies' rate. make them fight for your business.