What to look for when buying a condo in Nj

[Vincent P.]

Hello- I'm considering putting a offer on a condo on the outskirts of Jersey city. The property will cash flow positive and is for a buy and hold. What should I look for when buying a condo vs a single family home? Any tips? Are there any laws against buying a condo in a LLC? Thanks in advance.

[Ro Maga]

1. Make sure the HOA has healthy reserves, and the some of those funds are ear marked for CapEx.
2. Look into any deferred maintenance or any upcoming repairs the might trigger assessments. New roof anyone?
3. Look at the history of Maintenance fee increases. Are you up for a hike? Do they increase in a predictable manner?
4. Check to see how long the HOA has been with the same management. The more stable the better.
5. Talk to HOA leadership and ask if there are any potential law suits lurking in the future. That could get in the way of refinancing or selling later on.
6. Be sure the HOA/bylaws allow you to rent the unit from day one.
7. Be sure to check for noise transmission between shared walls! I spent two years of my life hearing my upstairs neighbor snore every night. If I had been renting, I'd have moved at the first chance. Instead I invested in soundproofing. If you have to soundproof at some point, factor some $10-12k (not including floors).
8. Depending on the size of the HOA, you may be hearing lots from them if your tenant is short of stellar. Remember that condo owners are invested in the building in way tenants don't care about.

As you know development in JC is very uneven. I'm not sure what you meant by the "outskirts of JC" but location matters a lot. If I had a choice between a condo and a modest house in the outskirts of JC, I'd go for the house anytime.