Does anybody here invest in condos? What are the differences between investing in then v. single family homes?

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I invest in condos.

They are no different in many respects. A good deal is a good deal and a bad deal is a bad deal. In some markets (city centers in large cities) condos are the norm and make up the bulk of the market.

Condos can have fewer maintenance issues as some parts of the structure and grounds are covered by the HOA. You need to check the HOA to see if there is a sinking fund. Condos can be fine for long distance rentals as you may have fewer things to manage.

Bottom line is the key. Cash flow including all costs plus the potential for appreciation. In some markets condos and homes perform the same in terms of appreciation while in others condos definitely are less desirable.

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John Corey

Real Estate Investor (REI) with over 20 years of experience.
Multiple states and countries; present portfolio spans 11 time zones.

Always open to answering questions. See the contact page on my blog; link below.

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i was thinking this same thing
i've been seeing a lot of them down on the coast people are trying to get rid of
would it be worth the buy even though it's a hurricane zone?

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I would not be all that concerned about hurricane zones if the units are new construction (last few years). The code is pretty strong.

Buying units in a project that has a lot of units in distress can be bad for you future. If there are too many units in default or similar the remaining owners can carry the cost. Lenders who take back a property in FL are not required to pay the back HOA in full, etc. So, check the details. Check if there is deferred maintenance, if there is a sinking fund or other things. Understand that your will not be in complete control the way you are with a SFR.

Condos can be fine but they are not the same as SFRs.

__________________
John Corey

Real Estate Investor (REI) with over 20 years of experience.
Multiple states and countries; present portfolio spans 11 time zones.

Always open to answering questions. See the contact page on my blog; link below.

Pay it forward.
www.ChelseaPrivateEquity.com/blog

Isn't insurance more on a condo?

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Why would the insurance be more?

I would almost expect the opposite given you actually have less property and the external structure is share.

__________________
John Corey

Real Estate Investor (REI) with over 20 years of experience.
Multiple states and countries; present portfolio spans 11 time zones.

Always open to answering questions. See the contact page on my blog; link below.

Pay it forward.
www.ChelseaPrivateEquity.com/blog

dumb question but wouldn't that mean condos in high traffic market areas such as on the coast or downtown become more profitable more than going the suburb house route?

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Coastal condos the insurance can be higher, but those are considered resort property and rent by the week for the most part, not like condos in major cities.

Down here on the Redneck Riviera we rent condos at Orange beach and Gulf Shores for as much as $2500 per week during peak season. Snowbirds (read Jared) can come down and rent them during the winter months for about that same price per month as well. A lot of them do this when they are retired because it takes that much to heat their home during the winter months sometimes.

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Steven Brown
Cash 4 Houses, LLC
HomeVestors
Mobile, Al
251-366-HOME
steve.brown@homevestors.com