buy and hold a condo versus a SF ?

Question

I am concerned that a condo will not hold its value as well as a single family, but I am not able to afford a single family in the type of neighborhoods I like to invest in. I found a condo in a B+ area that has reasonable HOA fees and rules (they allow tenants/renting and pets) and the numbers work.

I would like to hear from others who have invested in condos for buy and hold, and how that has worked out for you, bad or good.

Thank you.

Shoshana Shulman

I would like to hear from others who have invested in condos for buy and hold, and how that has worked out for you, bad or good.

Thank you.

Shoshana Shulman

Jonathan Taylor Smith · Answer

Hello @Shoshana Shulman - While I have yet to purchase a "Condo", I do own six Townhouses with HOA fees that vary from as low as $55 to $238/mo. They are all in B and C (+/-) areas and range in age from being built 9 to 41 years ago. When it comes to concerns about price / values holding and appreciating... I honestly do not much care. Sure, appreciation is great and a desired plus, but my concern is for CASH FLOW. I structure my purchases such that I am able to quickly get back any down payment and/or rehab cash that I had to put in, and my tenants are paying all the expenses while also putting cash into my pocket even after accounting for reserves. The end result is a FREE HOUSE for me... So what do I really care if my free house goes down in value? Short of the Zombie Apocalypse, it's not going to zero or anything near it. Buy in the right areas and for cash flow and you're fine with a Condo versus SFH.