Condos...yes or no?

[Kelli Kabler]

Very new to this world of real estate. My partner says that condos are the way to go but I think I've read somewhere on this board that condos not so much. We live in Tulsa, OK where condos are not as popular in other areas of the country. Any thoughts and feedback would be greatly appreciated.

[Curtis Yoder]

Run your numbers on Condos and SFH's. You will find that by and large the Condos will not cash flow as well as SFH's due to the condo fees. If you have a condo in mind that will cash flow it may be an okay deal.

Many investors are negative on condos due to the HOA fees being out of their control. A condo board could simply vote that they want new landscaping, new roofs, new paving, and require all owners to pay through assessment. While this is an unlikely example or over simplification, it can happen. And that makes me uncomfortable with the idea of a board controlling part of my investment money. And I simply do not have time to join the HOA board to have any influence of my own.

I know there are a lot of investors that really like condos due to the simplification of exterior maintenance. Personal choice. Again, run the numbers and figure out what works for you.