It's very common in Indy for investors to steer clear from condos. If you are an investor of the Indianapolis market I would LOVE to hear your reasons why.
I steer clear for a variety of reasons.
1. Cost. Most condos have HOA fees that are higher because they include all outdoor maintenance.
2. Generally, there is only a certain group of people interested in living in a condo. Since there are less people interested, it's more difficult and takes more time to find a qualified renter.
3. A lot of repairs may end up causing problems with the neighbors such as the noise involved while doing the work as well as neighbors who own their units not being happy with one of them being a rental due to the general nature of renter's not having pride of ownership of their residence potentially bringing down their property value. Whether that would happen or not is irrelevant to the fact that an annoying neighbor on the other side of the wall can be a huge pain for a unit that probably cost a lot more than an apartment of same size and has the same or less profits.
If there was a killer deal in my area, I would consider it but they lose a lot of points in my mind as being a great deal because of the type of property they are. They are much harder to resell so exit strategy is more difficult.
Hope this helps.
Thank you @Dale Hensley , this was very informative and gives me a nice perspective of condo investing.
I typically buy 4-6 per year and end up either wholesaling them or selling to owner occupants "as-is".
Of course, I'm getting them dirt cheap because no one else is bidding on them. That's the only way I'd buy them.
I wouldn't want to keep one as a rental, however, because you never know when the HOA may call for a "special assessment" and want a $5k check from you!
oh wow thanks for that heads up @Shawn Holsapple
I have bought 3 in the last 4 months. The cash flow can be crazy good but you have to buy them right and in the right area's. My clients have done well with them. Good luck with your search.
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