I’d like to get opinions on what type of condo is a better rental investment. I’m looking at a 2bd/2ba unit in a high rise and a 2bd/2ba unit in a low rise (3 stories) in a major metropolitan city. The high rise unit is a standard vanilla unit and is cheaper by about $15k. The low rise unit has more character but is an older building. Both are about the same size. I have a long term hold and rent strategy and was wondering which option is a better long term option both for resale and rentability.
THere must be a reason you are chosing condo over SFR.
I can only say…be very careful…condo Home Owner Associations can be a very BIG pain in the lower portion or your anatomy.
Have friends who bought into a high rise for their retirment. beach front, excellent view, all the things they thought were nice.
HOA is a nightmare…has increased from 400 to 600 per month in just over a year, maintenance is fair to say the least, fire alarm goes off all the time, had a non-english speaking maintenance man who found oil on one of the floors and used gasoline to get it up…the list goes on.
The majority of the units are nightly rental…only about 20 live ins out of about 200 units.
As an owner of one of the units you will have ONE vote. If you enjoy having someone else control your property and are not very responsible or responsive to you …then condos can be for you. Not for me.
Neen there done that…NO MORE CONDOS for me and NO MORE HOA.
Some HOA's for Condo associations prohibit daily or weekly rentals in the CC&R's. Then if you ever need to sell this Condo you will find it difficult if there are to many investor owned rentals in the community as lenders do not want to loan in rental communities.
This could force you to sell at a much lower price because value is effected by how many total rentals exist in a community. This could cause you to need a cash buyer or someone using private money when it comes time to sell to exit.
Like Bill said I would choose a townhouse or single family home long before I would consider any condo!
The reason I’m choosing a condo is because I’m tired of owning single family homes. I’ve owned 3 over the past 8 year. Too much maintenance, have to worry about roof, HVAC, yard, leaks, etc. I’m looking for something much more passive which is why I’m looking at a condo. I just want to be responsible for 4 walls and everything inside…nothing outside. These should be easy to turn and raise rents with minimal cleanup required when tenants move out.
I’ve owned a 1bd/1ba condo in a 12-unit building for the past 5 years and its been so easy. I’m the Treasurer on the board, and NEVER have any issues getting it rented or having it trashed or dealing with other HOA board members. Aside from the HOA, are there any other concerns?
To my mind short term option is the best variant! You shoul know that a long-term lease has certain advantages and disadvantages. Locking the rent into a stable price can be either good or bad. Rent generally trends upwards, so a long-term lease can potentially save you money by locking you into a set price for years to come. However, if the market crashes and rent drops suddenly, you’ll still be responsible for the same amount of rent. Though renting on a short-term basis offers conveniences to those who need to remain flexible, it also costs more. Besides, if you decide to leave the city, it’ll be rather hard for you to find tenants and cope with rentals. There are a number of good reasons to rent out a condo unit instead of selling it. In some years the prices on the condo will be higher and you’ll get advantages of selling it later. The easiest way to rent out your condo unit is to post the photos and the description of location at classifieds services like localmartuk or others. Good luck!