Updated over 2 years ago on . Most recent reply
things to consider before buying a condo
Hi all I am new to real estate investing and I live in the NJ/NY area. my overall plan is to own a bunch of rental properties. my current plan is to start with a condo, live in it for a while and then rent it out. I figure since I live in a city like area a condo is a safe bet assuming the building allows me to rent and HOA fees are reasonable. if anyone has any experience with condos what should I look for? what should I avoid? anything I should know regarding renting them out? open to any advice or suggestions on the subject.
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It is critically important how well the HOA is managed.
Many HOAs try to keep the monthly HOA fee low, but then run short when major repairs need to be made. In this case, they will assess a Special Assessment. Special Assessments can destroy your projected returns and put you in a cash bind. You will want to see the HOA's financials for the past few years and determine if they have been putting away enough cash every month.
Poorly run HOAs can be an absolute nightmare. Just google "Zombie Condos" and take a look.