Are Condos a Good Investment Decision?

[Mike Collier]

A close relative currently lives in one of my investment properties but is looking to move in a month or so to be closer to her new job. Her credit isn't in a position to allow her to buy or even rent an apartment without having to pay a very large deposit which most require. [In comes the REI] She wants to live in a Condo so that she's only responsible for the inside of the home and not the grass, pool, etc. I'd be willing to Seller Finance it for her but I'm not sure if Condos are a good investment. I would look to BRRRR the property but I'm very concerned about rising HOA costs and minimal appreciation on condos (in relation to stick built homes.) Should I consider the condo and simply "buy right" or should I lean towards a stick-built home and use a PM to handle the stuff she doesn't want to do?

[Mike Collier]

Originally posted by @Adam Bartomeo:

Never...

Never, never, never, buy a property for a family or friend no matter the deal!

Buy a property for the investment and if you choose to rent it or seller finance it to them. If things go side ways or you choose to part ways then you have a good investment. Do not let them dictate your investment strategy.

Also, in my opinion condos are an awful investment for a host of reasons. You can probably look up 1,000 threads on that.

 Adam Bartomeo I love your passion! Haha. Thank you. You're saying what I was already thinking as well. I told my wife just yesterday that I'll look to invest a bit more a buy duplex instead. That way I can hedge against the downside (if things went sour with the family member) and still have the other side rented PLUS have a better overall investment.