Better deals in condos right now?

[Patrick McCandless]

I've been seeing plenty of condo units that are going for $100,000-110,000 in B neighborhoods of Tempe and Phoenix that are renting for $1,000-$1,100 and needing little to no work before going on rental market. I know there are a lot of varying opinions on condos, but they sure seem to be the better buy on paper these days for long term cash flow holds relative to single family and even multi-family in most cases. Not just talking MLS either. I see plenty of wholesale SFR's being offered nowhere close to the 1% rule and needing at least a moderate amount of rehab before rent-ready condition.

It seems like this shift has come with increasing rental prices at an equal rate with single family versus condos, but increasing purchase prices much more rapidly on the single family side versus the condos. Sure there are HOA fees of $150-170/month on most of these condos, but you also remove several expenses with condos that you will have with single family as well as lower property taxes and essentially 100% depreciation come tax time.

Anyone else feeling the same? Hoping the condo haters and condo lovers alike will chime in on this one.