Can you compare a single family home with a condo?

Can you compare a single family home with a condo?

Rental Property Investor · Yuma, AZ · Member since 2019 · 637 posts · 46 votes

There is a house and there is a condo that looks nicer and was sold cheaper. Should I compare them or single family homes cost more than condos? I dont know anything about condos

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Contractor · Coachella Valley, CA · Member since 2017 · 252 posts · 176 votes
6y

Simple answer.  No.  If you are running comps this way, STOP!

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  • Investor · Gardena, CA · Member since 2017 · 445 posts · 398 votes
    6y

    Condos are easier to buy and harder to sell. Condos have Associations, association presidents and members who have to vote on every repair and how much and when they fine the condo owners for the most-trivial matters. Some associations are good and many are so horrible they write bad checks to vendors, contractors and utility companies. Owning a condo can be worse than renting an apartment with bad neighbors because it is not so easy to give a 30-day notice to move out when you your next door neighbor cannot sleep unless he is playing his thumping music that vibrates your walls all night while you are trying to sleep. I know more people who were dissatisfied with condos vs. happy with the results.

  • Rental Property Investor · Yuma, AZ · Member since 2019 · 637 posts · 46 votes
    6y

    @Jack Orthman does it mean that I ahouldnt use condos as combs for a single family home?

  • Investor · Gardena, CA · Member since 2017 · 445 posts · 398 votes
    6y

    What does that mean; using a condo for a comb?

  • Investor · Gardena, CA · Member since 2017 · 445 posts · 398 votes
    6y

    I've was recently crunching the numbers for investing in Yuma and the numbers are not looking good since the California investors caused the price of rentals properties to more than double (maybe triple) in the past few years. If I remember correctly, the population in Yuma is only 23,000 and I am guessing there is not a lot of opportunity for wages to keep up with the rent increases that are necessary to support the high prices paid for properties. 

    Many California investors probably made a huge mistake thinking they can increase rent like we do in California and I will bet there is going to be a lot of turnover and the ignorance will just keep recycling because there are millions of ignorant investors who go completely blind by the myths and false theories that they think will make a profit because every other idiot is paying ridiculous prices for rental properties in every and any locale.

    Just a wild guess? I would be careful about investing unless a property is a 100% sure thing and don't believe that everyone is making money just because the prices of real estate keeps rising. There are many fools who are losing money in the real estate business.

  • Rental Property Investor · Member since 2019 · 93 posts · 110 votes
    6y

    Best way to compare an investment in this question as I see it is to use the income approach and figure your cash on cash for each the condo and the single family property. Make sure to add up all real costs and compact the net numbers divided against the down. That will let you know what is best to purchase. 

  • Contractor · Coachella Valley, CA · Member since 2017 · 252 posts · 176 votes
    6y

    Simple answer.  No.  If you are running comps this way, STOP!

  • Contractor · Coachella Valley, CA · Member since 2017 · 252 posts · 176 votes
    6y
    Originally posted by @Account Closed:

    What does that mean; using a condo for a comb?

     He is referring to comps.  

  • Rental Property Investor · Yuma, AZ · Member since 2019 · 637 posts · 46 votes
    6y

    @Jack Orthman I was doing a CMA

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