How about wholesaling condos? Are condos more problematic to deal with than SF homes? Are investors as interested in condos as houses? Has anyone dealt with this kind of deal, and can give me some feedback/advice? I am located in South Florida by the way.
In my area Condos {I live in one} Have a stronger or more active HOA “Home Owners Association” You will want to look at their bylaws.
Along with the monthly assessments, you would have a harder time to find the buy and hold investors.
Now, when it comes to a rehabber. It is all about the numbers. If the numbers work and the time on market is not to bad. Call some of your buyers and see what they say.
Bruce
I presently have two investment Condos, which were previously an apartment complex converted to Condos. I am presently trying to get rid of mine because the rental area is better for SF homes. The condos are also very problematic because in one, there is a water leak from upstairs that has affected mine, and the other had a slow leak behind the bathroom wall. So, when I get my condo repaired, I will possibly have to go through the wall of the adjacent condo as well because of the possible mold that has build up from the slow leak. I just had bad experiences with my condos.
myreon
your post mentioning going thru the wall of the other condo…check your insurance policy. If the wall is damaged in another unit from your leak, your not responsible for their damages, its upto them to fix it. The headaches of living in a condo, someone elses damages can become your headache when its in your unit.
I live in condo, the neighbor above me had a leaky pipe, my ceiling needed to be replaced. My insurance company paid it out and since the unit owner above me had no insurance my company could not suborgate the damages with theirs to get money back…
I also live in SFL and i would not recommend jumping into condos are longterm rental units unless your getting a great deal on the preconstructions which is also something I think you should stay away from unless your buying at deep discount from somone who needs to unload a condo.
Remember with the hurricane seasons getting worse now, you can be looking at alot of damages and assements to older units. I live in a 35yr old condo and despite no severe damage to structures, we need new roofs now and its going to cost each unit owner $3500 payable in 2 payments…Dont want that with a rental unit…
Plus maintance fees make it real hard to cashflow the units.
NOw if your getting in on the condo conversion crazy, I notice they are pushing option arms with 10% down and cashflow in the 300-400 a month range but still neg. equity will happen if you make min payment each month but the units are in much better shape and should hold up to the hurricanes and no assements should not be planned for 5yrs or more on those units…