Invest in a condo or wait to save for a house?

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A condo can be a great investment - although I wouldn't know because both of mine were horrible. Which is 100% on me because I just jumped in with both feet, not knowing what to look for in a condo.You definitely want to research the health of the HOA. They should have a reserve fund that is growing every month - or has just been reduced due to a big repair, and is now being replenished. I bought in an HOA that had NO reserves, and the month after I closed, the HOA fee doubled to pay for new boilers, new parking lot paving, and a new roof. All of those items should have been budgeted for and planned for - with a reserve fund being built up to cover the eventual expense. Questions to ask your HOA:What is the amount of reserves? What are the most recent 24 months of repairs? What major repairs are planned in the next five years and how will it be funded? When was the last special assessment levied? If they can't answer these questions, then it isn't a very well run property and you shouldn't buy into it.

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@Cassandra Alessio - I would vote for buying a condo now over waiting a couple years to buy a detached home. There will (or at least should) be less maintenance that you're responsible for with a condo, and condos do appreciate in value over time. The HOA is definitely something to consider, but not all HOAs have the same bylaws or operate in the same manner. You would definitely want to do your due diligence in understanding the financial standing of the condo, the condition of the property, the effectiveness of the property manager, and the HOAs rules regarding renting out the units.

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Hi Cassandra. It's really about the numbers. I recently invested in multiple 1 BR condos as have some of my clients. The plus side is no roof repairs, no pool /garden expenses. I find the HOA fee is actually less than what I would pay for a pool person and gardener for a SFH. Just be sure to do a lot of due diligence on the HOA community rules and financials. I found the 1Brs were cheap to fix up and easy to rent (I was able to secure renters before I closed so no vacancy). I only found that to be true of 1 Brs because there is a large number of people wanting 1 Brs. This is a great time to buy as inventory is increasing and some buyers are hesitating due to rate rises. In most cases, Action outweighs waiting for the perfect deal. Condos may not appreciate as much as a SFH, but they appreciate more than not buying anything at all. :-)

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No condos....HOA and neighbors = problems....They also don't appreciate as well......

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I would invest in the multi family for long term rental. Condos have worrisome HOA that will cost more j in n g to he long run

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Depends on your investing goals. I think condos have different risk factors than trad investment properties, but I've known plenty of people who have had good condo deals. I would rather buy a solid condo than a bad multi deal. As for timing, I think we're all feeling this right now. Many investors are sidelined right now and have the inflation moths eating away at the cash in their war chest because it's so difficult to make deals work. Personally, I'm investing passively in inflation-hedged syndication deals and stocks to keep money working (and leveraging other people's time) while I work on increasing income.

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Thanks @Elenis Camargo! The low maintenance is definitely an appeal!

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Thanks @Christian Ehlers! I have noticed that a lot of condos in the areas I am looking are forbidding short term rentals but I could consider other states which I am open to. I have heard about that 10% vacation home loan. I could consider maybe getting a SFH and use for STR in an area that is highly desirable. The only concern with that is doing it out of state. Are there property managers that handle STRs?

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I think it is all about the numbers. Run the numbers and if they work then go for it. I like to use this https://www.calculator.net/ren...calculator. I have found better success with duplexes but to each their own. You should consider investing OOS here in Columbus or Cincinnati. The price to rent ratio makes for great investments. Not to mention our appreciation has been 8% higher then the US national average, because of the high demand for affordable housing.

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@Cassandra Alessio My experience as a property manager is that typically condos have less maintenance expenses. The condos I manage are super easy. Tenants pay on time and little to no maintenance issues. The main thing to consider are the HOA fees. When our clients look for investment properties that fall into an HOA we just make sure the HOA fees are low enough where they can still cash flow. A lot of investors stay away from condos but seeing the low maintenance costs as a PM I think it’s definitely worth considering. Happy investing!