New to Real Estate · MD and NC · Member since 2025 · 14 posts · 1 vote
I have heard others say trailers, and condo properties are not good investments. I would like to think that any property would be good, but I am new to this and would like to hear from those with experience. Confused Tks Selena
Condos can be flipped, as any flip it's all about numbers. The biggest knock as a flip is your buyer pool is slimmer compared to a single family. Most people will go the single family route. Another concern is your holding costs will be higher since there's association fees. If you held condos it's tough to cashflow as a rental with the association dues. You also can be dictated by the board and they can do assessments.
Condos and trailer can definitely be good investments! It just depends on the deal, your investment goals, and location.
I think a lot of investors (myself included) shy away from condos due to typically more stringent HOA rules that may or may not limit your ability to purchase as a non owner occupant, limits and approvals for renovations, and potentially smaller buyer pool since they are typically not as family friendly. However, that is just for the majority of my local market of Charlotte, NC; I am sure condo investors make a killing in parts of Florida!
As for trailers (NOT manufactured homes), they can be a little trickier as they considered personal property, not real property in some situations, which can affect the resale value as many banks will not lend on them. There is a process (at least in NC) to convert it to real property, but it is another step. Typically, investors like using them for buy and holds and for the cash flow (not necessarily flips), but I would encourage you to find investors and investor friendly agents in your area to see where your time and money would best be used.
Condos can be flipped, as any flip it's all about numbers. The biggest knock as a flip is your buyer pool is slimmer compared to a single family. Most people will go the single family route. Another concern is your holding costs will be higher since there's association fees. If you held condos it's tough to cashflow as a rental with the association dues. You also can be dictated by the board and they can do assessments.
Also consider supply, competition when selling a condo. Often there are several nearly identical properties available at the same time and all with the condo fee, tax and utilities meter running if sitting empty.
I personally don't care for condos - if it's an easy flip that can be bought at a huge discount and sold fast, then I may do it. Other than that I stay away.
Why do I not like condos:
- HOA (fees/rules)
- Don't own the entire property (limited value add)
- Special Assessments (CapEx essentially that you are not in control of)
- I would also imagine the appreciation is lower than that of a SFH
As for trailers -
I would only do this if I purchased a piece of land - then either rented the trailers or did a rent to own type deal, then charged lot rent. I would be tempted to do manufactured homes before trailers though
I have condos that have had great appreciation and constant rent increases. I buy in upscale areas where people want to live, as opposed to buying in the cheapest, “affordable” areas.