Investing into condominiums

[Jeff Wong]

Hello,

I currently own a 4-unit multifamily in East Bakersfield which is doing well for cash flow. I am looking into expanding and possibly purchasing a single unit condominium West of the 99 fwy. I am considering this because of lower cost of entry and possibly being able to cash flow ~$500/month on a 80k condo, 20% down. 

Does anyone have tips or suggestions whether going this route is a good/bad approach? 

[Christopher H.]

@Jeff Wong

Nothing wrong with it if the numbers work and it fits your criteria. Two suggestions that may help.

Double check that you have your strata/hoa fees calculated in your numbers.

Also be sure to do due diligence on the actual building itself. Have they done any major repairs recently? Do they have any planned? You don't want any surpises in the future.

If the building checks out and the numbers work then write it up.