Anyone Investing in Condos in Houston?

Question

Hello Everyone,

I've come across a good opportunity for Condo investments in the Houston area. I know Condos are not very sought after by many but if you'e interested in condo I'd like to connect with you. I'd also like to know if there is anyone in the Houston market making it work with Condo investments. Thanks!

John

Fred Heller · Answer

I managed a couple of rental condos for out-of-state investors on the SW side. I sold one for a nice profit for the landlord. I ended my relationship with the other one.I generally don't recommend condos for a couple of reasons:1. The monthly fee takes a pretty big bite out of your cash flow. If you're paying cash, it can work. But if you're financing (even in the event you can get financing), not so much.2. The condo fee can increase dramatically if the board decides to make major improvements, like a new roof. One of my clients was notified in August that her condo fee would increase from $303 to $480 (temporarily) to pay for a new roof. Extreme cases like that usually occur if the condo management is bad and they haven't planned ahead.3. The board can restrict the number of units that can be rented. They are trying to keep the OO rate high. There's a very nice townhome community close to me at Bingle and Tidwell. Their association is very strict on the number of rentals allowed. They restrict it to just a small percentage of the total units in the community.

Nikolas Ferreira · Answer

James nguyen but the condo fee can potential kill any cashflow in the beginning.

from talking to investors around here thats why most stay away.

James Nguyen · Answer

I am a buy and hold investor that have a couple of townhouses and condos in Houston.  As long as the numbers work, condos are great investments.  Taxes are much lower on condos than single family houses and you just have to worry about the inside of the four walls.