Thoughts on Condos for first time investment.

[Noran Gentile]

Hello! I am trying to break into the market. I am wondering if a condo would be a good first investment, or would a traditional house/multifamily house be a better option. 

[Carlos Valencia]

Hey Noran, as a current homeowner of a condo I'll share with you some of my pros and cons. Its also my current primary home. 

Pros: all exterior is covered by HOA for example the roof, gardening, fences, painting etc, gated community. Lucky for me since I live in Orange County Ca my appreciation has been great nearly doubled since when I bought it in 2017. In my case its been a good investment. I only share walls as my condo is two floors so no one on top of me or below.

Cons: HOA keeps increasing, If I were to rent it out theres not much room to have a decent amount of passive income. I would mostly break even. Even with such high rents here in Orange county.

Overall I would say depending in the area I would say Condo is a good investment to get some appreciation but to use it as your primary home and then sell it and take that profit and invest in a multi family. That is what I'm thinking of doing in the future for my current situation. More likely sell it and re-invest that on a multifamily or single family. Good luck in your investment endeavors. 

@Albert Bui @Matthew Kwan