hey guys,
i’m looking for my first deal with a townhome or condo. i’m working with a realtor that has some experience in investment properties. i want to know what are some things i need to look for to be sure it’s a good deal desides getting to property for less than its value. thanks in advance.
rashidi :iconfused:
For me, condo’s are off limits. If you’ve ever been part of a nightmare home owners association you’ll know what I’m talking about.
If you’re going to deal in that asset class you better read every word of the HOA by laws before you sign on the dotted line.
Howdy Rashidi:
Condos are not really that great. I bought one 10 years ago for $17,000. It did double in value over 10 years and I paid it off over ten years too but what a struggle keeping it rented and paying the condo dues. I just bought another one in the same complex for $28,000 that when repaired should sell for $56,000. It is larger than the other unit. The fees every month are $200. It should rent for $550 to $600 if I wanted to rent it. I hope I can sell it and not have to rent it. I do not have the financing to keep it more than a year. If you can not get them really cheap I would buy a house or duplex. Stacy is right too about the HOA can be a real drag.
Watch out too about the condo documents, lenders need the management company to prepare all kinds of stuff and the fees could be $300 to $500 for their services at the closing.
Good luck and thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737
512-301-9171 home
512-587-6177 mobile
thanks a bunch guys for the indfo. i guess what i’m trying to do is keep my down payment and closing cost to a min. i know hard money can be a great help but being a newbie you think more about the risk. :