Hey Everyone, I am looking for some feedback and greatly appreciate any other helpful insights.
Currently in the Philadelphia Market - first time property investor. As I look to ease into buying real estate I am conflicted if I should consider purchasing a condo/apartment over a single family home. My thoughts are for the limited funds i have available the first go around it might be easier to go with a condo /apartment because of less rehab and structural issues that could go wrong.
In addition to not being able to do most of the work myself if that was the case costing more money. Also, with an apartment in the city of Philadelphia I feel that it would be a quicker turn around time. Since this would be my first purchase I'm not too concerned with seeking high rates of cash flow. Since i would like this to be a long term investment and use this as an easier way into learning the ropes. I know the downside of an apartment are the HOA fees will cut into my cash flow, but if I can get a minimum of 100$/ month after all costs I would be satisfied since the mortgage would be getting paid.
Does anyone have any thoughts on this approach? Or any insights the the Philadelphia market? Thanks!
You have much less control in a condo situation. There are several ways that a deal can go sideways in a condo that do not exist in a SF rental. Everything equal, I'd choose a SF over condo any day.
Research the following:
- Special assessment HOA fees
- What happens if my condo HOA is in a lawsuit?
- What do I do if my condo neighbor is a hoarder? Has roaches? Has rodents?
@Alex Michael . You don't want a condo as a first time investor or any really. HOA fees you have to pay regardless if you have a tenant or not you can't turn anything off and condos are hard to sell at least where I live don't go that route SFH all the way. HOA dues increase all the time which will eventually decrease your cash flow or make you negative. Sometimes the regulations change and don't allow rentals then you're really in the ringer
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