Looking to buy in 1031 exchange in Boise

[Gary Sheth]

Hi, Are downtown condos a good medium to long term investment option? 

Any feedback would be welcome. 

Thanks! 

[Ryan Wallace]

Quote from @Gary Sheth:

Hi, Are downtown condos a good medium to long term investment option? 

Any feedback would be welcome. 

Thanks! 

The other two responses are spot on. HOA fees in many of the downtown buildings really limit the potential for a solid ROI. Vacancy in downtown from what I have heard is also slightly higher than the surrounding areas due to all of the new high end apartment complexes that are going in downtown Boise. Make sure the numbers pencil and you should be fine.

The other thing to consider is the Condo association. Make sure you thoroughly read the CC&R's because many also have restrictions on rental (% of owners that can rent, length of term, approval prior to,no short term, etc.). Condos have very strict rules regarding %owner vs % investment and can loose their condo cert if they don't abide. This makes these units ineligible for conventional purchase which really effects the resale for owners.

I don't know what kind of numbers you are looking for, but I have a Duplex just north of downtown with a potential note assignment at 5% interest. PM if you want some more details.