Buying a Condo As an Investment Property2219186

If you're like most people, you would like your financial future to be better than your current, or at least not worse. So, you set money aside and consider ways to make it grow. The options seem endless, but you have decided real estate as your investment arena, and you are considering condos.

Condos have several advantages over single family houses or 2-4 unit buildings. And lots of disadvantages. Within my conversations with people who've committed to condos, few were mindful of all of them. So now they are.

Features of buying a Peak Residence as an investment property

Maintenance must be done on all properties. Condos, especially condos which can be professionally managed, offer some respite to condo investors.

You don't need to worry about roof, stairs, landscaping and such. The association takes care of them. For a price, the simple truth is, but you do not have to do them. A few of the problems in the unit can also be taken care of by the complex maintenance crew. That is different from condo association to condo association. And they charge you because of it, but you do not have to drop anything else and run to your condo since the sink's leaking. Price

Some condos are extremely expensive. However, houses of similar size inside the same neighborhood cost more. So, you can buy an investment property in the better neighborhood. Also, generally in most areas, there isn't any such thing like a 1-bedroom house, but you will find 1-bedroom, or even no bedroom, condo units. And, usually, there are people ready to rent them.

Amenities vary from condo association to condo association. But it's possible to buy condo situated in a complex that has swimming pool, 24-hour security, and such things.

The disadvantages of purchasing a condo as an investment You must follow rules which are not yours. Each association features its own rules. And the rules can change. One of the rules that will change is whether or not tenants are permitted or otherwise. If you own a condo and the association votes no more tenants, when your lease comes to an end, you either move around in or sell. Your association might opt with the 'no more tenants' rule at a time when selling is not an great option.

Or, worse, they decide to allow way too many rentals. A lot of tenants can make getting a mortgage difficult (FHA yet others do not like condo associations where more than 10% of the units are rented.) which makes reselling your investment difficult, not forgetting refinancing it.

Yes, you could make sure you have something to say on decisions and obtain yourself elected around the board of directors; still, you aren't the only decision maker.

You have to pay the same amount whether your unit is rented or vacant. Put simply, you get to spend the money for same amount whether you use or otherwise not the services (as an example, the water bill portion of your assessment).