Buying a condo to rent out worth it?

Question

I've heard more than a few people say they started out with a condo that they could rent out. Has anyone had any luck with renting out a condo? What are some pros and cons? Would airbnb be a possibility?

Ian Rowland · Answer

@Kaushik Patel

I wasn't looking in a specific area I just saw some decent deals.

Kaushik Patel · Answer

@Ian Rowland

I recently bought a condo in Des Plaines few months back.  If it's your first one buy closer to you if you gonna manage it.  I buy when numbers make sense. Lucky last one turned out to be closer to my house. Des Plaines turned out to be good since village doesn't have lots of process/restrictions in terms of rental inspections etc. Which area in Des Plaines are you looking at?

Ian Rowland · Answer

@Jacob R. Des Plaines actually has some really nice deals.

Ian Rowland · Answer

@Jacob R. Unfortunately a multil family house in Lakeview cost close to a million.

Jacob R. · Answer

I've debated desplaines as well, but never went further than casual perusal online.

Never airbnb'd the unit. The hoa doesn't allow it. Would love to pick up a small multi unit building in Lakeview and aorbnb the whole thing. With Cubs appeal, can cover the entire years costs in a few short months.

As for condos in general, some of the cons are the hoa. They have ultimate decision for big spending with the building and maintenance. So overzealous spending as well as under investment can come back to bite you. Additionally, they can vote to create rules stopping you from renting your unit out (requiring owner occupancy) or simply a rental cap on the number of units rented.

Big pros are the management of common area maintenance. Don't need to worry about snow removal, etc.

Ian Rowland · Answer

@Jacob R. Did you ever Airbnb it? I was looking at Lakeview and weirdly enough Des Plaines.

Jacob R. · Answer

Most buildings I have looked at that have any amenities/doormen dont work on numbers.

I started with a condo in a small courtyard walkup building that worked well. Rented at 1% of purchase price. Benefit is that the HOA manages a lot of the headache stuff (common area maintenance, utilities).

Still some that look good in East Lakeview.

Would say its still doable, but harder to come by.