Investing in a condo near Medical Center in San Antonio?

[Julian John]

Thinking of buying a condo near the Medical Center area in San Antonio. I intend to live in for a year and then turning it into a rental property. Is it a good investment considering the HOA fees? There wont be a problem finding tenants since its near the Medical Center and USA and the rents are pretty high. Thoughts from experienced RE investors in the San Antonio area?

[Jeff Wells]

Julian, it has been a year or 2 since we looked at condos as a rental option in the Medical Center.  There are some great deals there, but when we looked, it was a break-even type of scenario at best (which everyone knows isn't really break even).  Since then, rents have definitely increased, but so have the property values, so I'm guessing it's still a wash.  Condos in general are not great investments for 3 reasons.  They are always the first to depreciate when the market takes a dip, they are always the last to appreciate when the market rises, and there are so many factors outside of your control from a value standpoint.  The condo associations really drive the value of your condo (how well the grounds are maintained, etc), and the politics and stuff that happens behind the scenes of those condo associations can be crazy.  With a house, you solely determine whether you succeed or fail.  With all of that said, if you plan to live there for at least a year and can find the right scenario, it may work out for you.  Just speaking on broad terms here....