Cheap condo now or wait for duplex?

[Abby Gruendemann]

I’m 23, about 6 months out of college, living in Wisconsin with my mom and her fiancé. The home environment has gotten really stressful, so I’m feeling a lot of pressure to move out for my own mental wellbeing. I make $62k/yr and have $24k in liquid assets ($11k in investable assets after setting aside my desired 5 month reserve fund).

My long-term plan has always been to buy a duplex to house hack, but I came across a cheap 2-unit condo listed around $110k that looks updated and move-in ready. The seller claims the HOA fees are only $33/month, which seems unusually low and makes me unsure what to look for or what the risks might be. Because the condo price is so low, I would still have a decent monthly savings rate towards my next deal.

I've done a lot of research on duplex house hacking but almost none on condos, so I'm unsure how big of a deal things like HOA reserves, rental restrictions, special assessments, or resale value are. I'd only want to live there for about a year before buying a multifamily, but am unsure how this would impact my future plans of house hacking my first multifamily.

Given my situation, would it be a mistake to jump into a condo like this just to move out, or is it reasonable as a short-term stepping stone? Also—any suggestions on what I should be asking my realtor or paying attention to at the open house specifically with this condo?

Would appreciate any advice or experience from people who’ve been in a similar spot.

[Aaron Zimmerman]

For the HOA, you'll want to review meeting minutes, financials, and see if there's a rental cap because ideally you'll want to rent out post-move out or if there's a spare bedroom, be able to rent that.

As for the condo vs multi-family, if you can buy something and save money for next property in time for next year, I'd say do it. Otherwise, if this will inhibit you from buying multi-family, could you rent a place with roommates instead and still save money?