@Todd Robertson there is profit in renting out a condo/townhome if the numbers make sense (HOA, property mgmt, taxes, vacancy). Condos/townhomes make sense if you like the low maintenance. Lately investors have been finding these rentals that hit the 1% rule in Decatur.
Would you be willing to share why you do not like townhomes? I've been considering them for a starting investment but would like to hear some of the cons of townhomes.
@Todd Robertson I have a few condos, but I also had one that was not run well. The place was maintained, but they kept having special levies and couldn't handle their money well. I am glad I sold it when I did. Look at the condo docs to ensure there are no limits on rentals, how it is run and the financials.
Pros of a condo include lower property tax than a single family, you don't need to maintain the common areas and there is generally a lower price to entry.
Cons if you have a poorly run condo, it can cost you; the condo/HOA fees add up quickly and you can often put that towards mortgage payments and get a single family house, if you have problem tenants, you have problems with neighbours and possible fines.
Personally, I don't love them, mostly because the HOA has quasi-equitable interest in your property. They can make rules or charge you for repairs without your buy in or consent. Some can tell you what color you can paint your house and what materials you can use on your roof.
I have clients that love them because some big ticket maintenance items and upkeep are included in the cost and it makes it more passive. It can be great for people looking for a more passive investment, you just have to pay for that through the HOA dues.
Would you be willing to share why you do not like townhomes? I've been considering them for a starting investment but would like to hear some of the cons of townhomes.
Thank you,
Juan M.
1. HOA
2. Special assessments
3. When there is a market correction, condos and townhouses typically lose their value faster than SFH. (but they could also appreciate faster!)
4. Did I mention HOA? Search on BP and you'll see both pros and cons. MF investors could say the same with SFH or condos as well. Every asset class has positives and challenges.
Bottom line is if the number works, and you've done your due diligence, then take action!
Would you be willing to share why you do not like townhomes? I've been considering them for a starting investment but would like to hear some of the cons of townhomes.
Thank you,
Juan M.
1. HOA
2. Special assessments
3. When there is a market correction, condos and townhouses typically lose their value faster than SFH. (but they could also appreciate faster!)
4. Did I mention HOA? Search on BP and you'll see both pros and cons. MF investors could say the same with SFH or condos as well. Every asset class has positives and challenges.
Bottom line is if the number works, and you've done your due diligence, then take action!