Owning multiple units in the same condominium?

Question

What are your thoughts on owning multiple units within the same condominium complex? For example, owning 3 Units in a 15 Unit Complex.

Basically, I've seen this deal presented a few times, but even when numbers work, it's tough to pull the trigger being that you don't own the whole building and are relying management to upkeep the building and its surroundings. Also, there's HOA fees involved. I just wanted to know if anybody has done this before.

Jerome Kaidor · Answer

I recently passed on just such a deal.  The numbers would have worked.  Five units.  HOWEVER - what a lot of work!  Five mortgages, five property taxes, five insurance policies...

Jason Hirko · Answer

@Tommy Cheng be careful because if you buy too many or make too many into rentals, you can turn the whole condo into a non-warrantable condo which negatively affects resale value as they are much harder to finance than warrantable condos.

Maurice D. · Answer

well the benefit is you have more seats at the table..  when it comes time to vote on say allowing short term rentals and you have 9 units out of 16, you probably can get it past?

that's the only benefit I can think of, but not 100% sure it works that way depending on their by-laws

Mason Hickman · Answer

@Tommy Cheng

Yes, you would typically have more voting power. When assessments come your way, you’re also getting dinged 3X.

If you’re concerned about owning and controlling the building, condos probably won’t ever be a good play for you.

Franklin Romine · Answer

You should try and buy all of them.

Bruce Lynn · Answer

I would probably only do this if you plan on buying all the units at some point.

You have to think about exit strategy as well.  Might be tough to get financing for resale as many lenders have restrictions about one owner owning more than 20% of the units in one development.

Very few condos work well for rentals due to the HOA dues, so have to be careful there.

You would think more 1st time home buyers would be looking at condos to buy due to the lower prices, but so far not sure that is true.

Owning multiple units in the same condominium?

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