When I started investing in real estate, I was not really sure what type of property I should choose.
Residential, Condo, Commercial?
They all had pros and cons.
But, I was looking for something that could reduce management and maintenance burden.
Then, I discovered the benefit of having a condo as my first property:
✅ Location. Location. Location. Condos are normally closer to amenities like public transportation, restaurants, and shopping.
✅ There is already a management company in place that will take care of the common areas, building exterior, landscaping, and snow removal.
✅ If the unit is vacant between tenants, I have other neighbors in the building watching for me.
✅ Lower price. Condos can be more affordable than a single family home in the same area.
✅ Rent range. The rental for a condo will be cheaper than a single family home. This will give me a larger base for potential tenants.
✅ Resale advantage. Condos in good communities can appreciate in value and remain competitive against single family homes.
However, there are important things to consider when looking for a condo:
✅ Do not purchase a beachfront condo in a large building in Florida. Due to the collapse of a building a few years ago, there are new laws requiring costly repairs for some buildings. This expense is something you want to avoid as a new investor.
✅ Look for condos in communities without complex amenities that could cause an assessment. Ideally, you want a simple unit. Not a unit in a large building with a pool and elevator.
✅ Confirm that there are no rental restrictions.
✅ Check for any past or planned assessments. Normally any current assessments may have to be paid in full at closing.
✅ Review the HOA balance sheet, budget, income statements, reserve study, and delinquency rate.
✅ Have your lawyer write an addendum that will allow you to cancel the sale if you find any issues with the HOA finances.
What strategies do you prefer for real estate investing? Comment below.
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About me🤓:
As featured in Business Insider, I enjoy writing about various side projects and helping others along the way. Follow me here: Steve Lewis, CISSP, CCSP
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About this post:
I believe that being a landlord is a very important responsibility. You have the opportunity to make someone’s life better.
For over 10 years I had a side project as a landlord managing 3 condos.
During this time, I collected over $288,000 of rental payments and provided a safe place to live for others.
My goal is to help you find your first property, successfully screen a tenant, self-manage your property, and define an exit strategy.
Ready to learn more about becoming a condo landlord? Join my newsletter below.
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